{"id":2053,"date":"2008-11-07T11:38:08","date_gmt":"2008-11-07T15:38:08","guid":{"rendered":"https:\/\/acrossthecurve.com\/?p=2053"},"modified":"2008-11-07T11:38:08","modified_gmt":"2008-11-07T15:38:08","slug":"treasury-fails","status":"publish","type":"post","link":"https:\/\/acrossthecurve.com\/?p=2053","title":{"rendered":"Treasury Fails"},"content":{"rendered":"<p>The Treasury <a href=\"http:\/\/www.treas.gov\/press\/releases\/hp1259.htm\">will investigate <\/a>large positions in an old 2 year note and an old 5 year note. The issues trade at zero in repo and have been failing heavily. Anyone with a position of greater than $2billion will be required to report those positions to the Federal Reserve.<\/p>\n<p>I wonder if this is the beginning of an attemp to clean up the fails in the Treasury market. I do not have a solution but do suggest caution as a solution might have as an unintended consequence a reduction of liquidity in an increasingly illiquid Treasury market.<\/p>\n<p>Several market participants with whom I speak suggest that the problem resides with several large central banks and who have chosen not to lend securities in the repo market. If those entities could be cajoled into lending again it would take quite a bit of pressure off the market.<\/p>\n<p>The Treasury announced their intention to probe these two particular positions but that data is not expected to be reported until next Friday. I think that\u00a0 will engender some covering in the suspect issues in the interim.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Treasury will investigate large positions in an old 2 year note and an old 5 year note. The issues trade at zero in repo and have been failing heavily. Anyone with a position of greater than $2billion will be required to report those positions to the Federal Reserve. I wonder if this is the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-2053","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9YXi-x7","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=\/wp\/v2\/posts\/2053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2053"}],"version-history":[{"count":0,"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=\/wp\/v2\/posts\/2053\/revisions"}],"wp:attachment":[{"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/acrossthecurve.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}