Dresdner Kleinwort Securities has withdrawn from being a primary U.S. government securities dealer. Primary dealers deal directly with the Federal Reserve in buying U.S. government debt. They then can sell the securities to clients or hold it themselves.
They are REQUIRED to bid on U.S. government debt during treasury auctions. This seems to me to be a bearish sign for U.S. treasuries. However Jefferies & Co joined as a primary dealer last week. This somewhat mitigates the bearish news today.
I'll kept an eye on the situation to see if more primary dealers leave.
I found this information at MarketWatch. More to come on U.S. treasuries....
Posts
No comments:
Post a Comment