The New Face of Treasury Auctions

By Daniel Kruger and Peter SantilliFeaturesDow Jones Newswires

In the depths of the financial crisis, the borrowing needs of the U.S. more than tripled, surpassing $2 trillion on an annual basis each year since 2009. Foreign investors and Wall Street banks bought most of the debt at government bond auctions.

As the U.S. stiffened its financial regulations and the crisis atmosphere abated, demand from those quarters waned. Individual investors -- through their stakes in fixed-income mutual funds -- have stepped up to fill the gap.

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Less than 15% of Treasury purchases in October auctions were made by foreign investors, down from nearly 43% in June 2009.

Today, domestic bondholders account for greater than half of the more than $14 trillion in marketable debt outstanding.

(END) Dow Jones Newswires

December 10, 2017 15:16 ET (20:16 GMT)