Emergence of ¿Regular¿ and ¿Predictable¿ as a Treasury Debt Management Strategy : A Reprint from ¿Economic Policy Review¿

During the 1970s, U.S. Treasury (UST) officials revised the framework within which they selected the maturities of new notes & bonds. Previously, they chose maturities on an offering-by-offering basis. By 1982, the UST had ceased these ¿tactical¿ sales & was selling notes & bonds on a ¿regular & predictable¿ schedule. This article describes that key change in the TST¿s debt mgmt. strategy. In 1975, UST officials financed an unusually rapid expansion of the fed. deficit with a flurry of tactical offerings. Because the timing & maturities of the offerings followed no predictable pattern, the sales sometimes took investors by surprise, disrupting the market. These events led UST officials to embrace a program of regular & predictable issuance. Tables.Garbade, Kenneth D. is the author of 'Emergence of ¿Regular¿ and ¿Predictable¿ as a Treasury Debt Management Strategy : A Reprint from ¿Economic Policy Review¿', published 2007 under ISBN 9781422315293 and ISBN 1422315290.