3 ms·
Treasuries are the most liquid market in the world, they are basically used as currency at a certain level. You can sell treasuries almost instantly for an ins
by imwithstoopid 4y ago
Treasuries are the most liquid market in the world, they are basically used as currency at a certain level.
You can sell treasuries almost instantly for an instantly computed discount/premium...it's not like selling real estate, treasuries are nearly perfectly fungible
So it's not really a matter of demand for low yield treasuries...they've been instantly revalued every second since they were issued. All that matters is the duration remaining.
- lallysingh 4y agoI think that's the point of the "unless you discount them enough" clause in the parent post -- there is a substantial discount compared to par.
- imwithstoopid 4y agoyou as the seller don't get to "discount" treasuries, its auto-computed (why would it not be? your treasuries are not special, no one has any reason to buy yours over another with approximately the same duration) its a currency market, liquid and fungible...there is no "enticement" of buyers
- lallysingh 4y agoYeah "discount" here means "sell less than par" not "choose to lower my price." I think we're all talking about the same thing from slightly different angles.