3 ms·
If the private sector doesn't step in to buy newly issued treasuries, you would have a failed US treasury auction!!!
by cs702 3y ago
If the private sector doesn't step in to buy newly issued treasuries, you would have a failed US treasury auction!!!
- s1artibartfast 3y agoHowever, that isnt the motivation of the private sector. The private sector buys them because they want to returns.
- cs702 3y agoOf course. The private sector sets the price at each auction! The US Treasury HAS TO sell the bonds. It has no choice.
- s1artibartfast 3y agoCorrect, The US Treasury has to sell enough bonds to fill the budget deficit.