US Treasury seeks dealer guidance on 20-year bond auction schedule, stablecoins

Reuters

Fri, Apr 11, 2025, 10:35 AM 2 min read

NEW YORK (Reuters) - The U.S. Treasury said connected Friday it is seeking guidance from superior dealers connected stablecoins arsenic good arsenic imaginable changes to the 20-year enslaved auction schedule, including perchance shortening the when-issued period.

The when-issued play typically begins aft the announcement of a caller information contented and ends the time earlier the existent issuance date. Trading typically occurs during this period, allowing investors to enactment successful the marketplace and explicit their presumption connected the terms of the security.

Meetings by the U.S. Treasury with superior dealers volition beryllium connected April 24 and 25, with their input connected fund shortage and indebtedness issuance estimates, among different topics, to beryllium considered for the refunding announcement successful May. Primary dealers are trading counterparties of the New York Federal Reserve, acting arsenic marketplace makers connected U.S. authorities debt.

The 20-year auction is presently announced mid-month, settled astatine the extremity of the month, and has a mid-month "dated date", the play successful which involvement starts oregon accrues connected a bond.

The "dated date" is important for calculating accrued interest, particularly erstwhile a enslaved is sold betwixt involvement outgo dates.

This docket often results successful a longer when-issued play for 20-year enslaved sales, including auctions of the Treasury Inflation-Protected Securities, compared to different auctions, the documents showed.

The section besides sought comments from dealers connected the imaginable request for Treasury securities arsenic a reserve plus for stablecoins, peculiarly fixed caller Congressional enactment successful this area.

Stablecoins, a benignant of cryptocurrency designed to support a changeless value, usually a 1:1 dollar peg, are commonly utilized by crypto traders to determination funds betwixt tokens. Their usage has grown rapidly successful caller years, and proponents accidental that they could beryllium utilized to nonstop payments instantly.

The House of Representatives and the Senate person some introduced bills to make a regulatory authorities for stablecoins. The Senate Banking Committee precocious 1 measurement past month, and the House Financial Services Committee approved different past week.

(Reporting by Gertrude Chavez-Dreyfuss successful New York; Editing by Nia Williams)