Failure to deliver and naked shorting plague Treasury market

October 26, 2008 by · 1 Comment
Filed under: Economic News 

This is something new I have come across.  Looks like we have a interesting little fact that isn’t being talked about.  First we had naked shorting of stocks, now we have naked shorting on treasuries.  According to the article, $2.29 trillion dollars of t-bill auctions failed to deliver the security.  An analysist in the article mention that is was a historic level of failures to deliver on treasury sales.


The credit crisis is causing a growing number of delivery failures with Treasury securities.  The latest data from the Federal Reserve Bank of New York showed that cumulative failures hit a record $2.29 trillion as of Oct. 1. The federal settlement period is T+1 (trade date plus one day).

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Federal Reserve boosts cash auctions to $900 Billion and may do more

October 6, 2008 by · Leave a Comment
Filed under: Economic News 

Imagine a who lot of money being printed and then a whole lot more. This is not a dream, they are turning on the faucets and firing up the helicopter. The Fed is not going down without a fight and they got a bazooka and plenty of ammo to try and quell the markets. It will not work in the end because of the United States’ fundamental problems.


The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

“The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions,” the central bank said in a statement released in Washington today. Fed and Treasury officials are “consulting with market participants on ways to provide additional support for term unsecured funding markets,” the statement said.

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