With the Treasury's endorsement, the Federal Reserve stopped pegging the yield on Treasury bills in July 1947 and ended its ceiling on Treasury certificates a month later.
The Treasury allowed the yields on Treasury certificates and bills to rise further but in return asked the Federal Reserve to reaffirm its commitment to a 2.
The regression results above, shows that a positive relationship exists between money supply and Treasury Bills (TB), Treasury Certificates
(TC), Certificates of Deposit (CD), and Bankers' Acceptances (BA) as explanatory variables.
The dominant elements are such low-risk instruments as bonds and treasury certificates
However, trading in gilt-edged instruments such as treasury bills (TBs), treasury certificates
(TCs), stocks and bonds gained prominence as well, while commercial papers (CPs), bank acceptances (BAs), and other corporate money market instruments remained relatively obscure (Ezema, 1993).
Just before the declaration of war, Secretary of the Treasury McAdoo charged the System, which in 1915 had been made a receiver and distributor of government funds, with a new fiscal-agency function: that of issuing and redeeming shortterm Treasury certificates
to prepare for the floating of the $2 billion Liberty Loan of 1917.
The Bank of Italy is set to auction EUR6bn worth of treasury certificates
and bonds this week, reports Thomson Financial.
Banxico policies to contain inflation have thus far proven effective, and overall inflation forecasts are down, while the interest rate on 28-day Treasury certificates
(Cetes) has fallen to its lowest level since 1994, at 8.
A start was made in 1996 to refunding the large accumulation of outstanding tax credits due to banks in Italy, but the refunds are being paid in instalments in the form of Treasury certificates
, and only in part.