As the need for more efficient payments solutions has expanded, Citizens has worked to further enhance its
treasury offerings.
Speranza Systems will be integrated within the Wallstreet Suite and Wallstreet
Treasury offerings of Wall Street Systems.
Oversubscriptions-the principal indicia of underpricing--were a persistent characteristic of Treasury offerings throughout the 1920s (Chart 5).
In response to bank oversubscriptions for, and prompt sales of, new Treasury offerings, nonbank investors began to abstain from subscribing for new issues, electing instead to acquire the securities in post-offering secondary market transactions.
With regard to the Treasury's quarterly financings, the Manager had followed the practice over the past several years of exchanging the bulk of the maturing securities held in the System account into the shortest issue offered by the Treasury, while placing relatively small amounts in the longer-term
Treasury offerings.
Following the Treasury-Federal Reserve Accord of March 1951 and the restoration of Federal Reserve control of monetary policy, Federal Reserve officials adopted a policy of maintaining a fixed monetary policy during Treasury offerings.
The emergence of regular and predictable sales of Treasury notes and bonds reduced the element of surprise in Treasury offerings and allowed investors to plan future commitments of funds with greater confidence.
More generally, the result is consistent with the proposition that regular and predictable issuance reduced the element of surprise in Treasury offering announcements and therefore facilitated investor planning.
One possible explanation for this result is that the reaction of market participants to Treasury offering announcements changed following the well-known change in monetary policy in October 1979 that placed greater emphasis on control of monetary aggregates.
