Www.federalreserve.g Ov.pdf

The US Treasury securities market is the largest and most active debt market globally, with approximately $3.6 trillion in debt held outside federal government accounts as of September 1999. The market is heavily traded, with primary dealers executing an average of $190 billion in transactions daily. Treasury securities are used by various investors for investing and hedging purposes, and their yields serve as benchmarks for pricing other debt securities. The market has a complex structure, involving the Department of the Treasury, the Federal Reserve, government securities dealers, and other holders of Treasury securities. Outstanding Treasury debt has grown substantially over the years, reaching $5.6 trillion by September 1999, with marketable securities accounting for about $3.2 trillion. Marketable securities include bills, notes, and bonds, with notes making up more than half of the outstanding marketable debt. The Treasury also issues nonmarketable securities, primarily in the form of Government Account Series, State and Local Government Series, and savings bonds. Recent developments in the market include the introduction of inflation-indexed securities, a reduction in Treasury securities issuance, and shifts towards electronic trading and alternative clearing arrangements.