Technical Note on Issuance Mechanisms for Government Securities

Abstract:     
In developing strategies towards covering the government's debt borrowing needs, a government debt manager, in addition to taking decisions on selecting debt instruments, has to develop appropriate mechanisms to sell these instruments to the market. This note intends to address a variety of issuance mechanisms for government securities. The note includes four sections. The note starts with a brief discussion of the three sound issuance principles. Section II analyzes a variety of major techniques for selling government securities. Section III discusses the most commonly used selling technique - auction - from both theoretical and empirical perspectives. Finally, section IV discusses the primary dealership.

Number of Pages in PDF File: 31

Keywords: Issuance mechanisms, Govnerment securities

JEL Classification: G1, G28, H63

working papers series