固定收益证 券Factors Affecting Bond Yields and the Term Structure of Interest Rates.pptVIP

* * * * Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-* Treasury Securities (continued) Secondary Market The secondary market for Treasury securities is an over-the-counter market where a group of U.S. government securities dealers offer continuous bid and ask prices on outstanding Treasuries. There is virtual 24-hour trading of Treasury securities. The three primary trading locations are New York, London, and Tokyo. The normal settlement period for Treasury securities is the business day after the transaction day (“next day” settlement). Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-* Treasury Securities (continued) Secondary Market The most recently auctioned issue is referred to as the on-the-run issue or the current issue. Securities that are replaced by the on-the-run issue are called off-the-run issues. At a given point in time there may be more than one off-the-run issue with approximately the same remaining maturity as the on-the-run issue. Treasury securities are traded prior to the time they are issued by the Treasury. This component of the Treasury secondary market is called the when-issued market, or wi market. When-issued trading for both bills and coupon securities extends from the day the auction is announced until the issue day. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-* Treasury Securities (continued) Secondary Market Government dealers trade with the investing public and with other dealer firms. When they trade with each other, it is through intermediaries known as interdealer brokers. Dealers leave firm bids and offers with interdealer brokers who display the highest bid and lowest offer in a computer network tied to each trading desk and displayed on a monitor. Dealers use interdealer brokers because of the speed and efficiency with which trades can be accomplished. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6-* Treasury Securities (continued