A would-be disruptor hits a Treasury-market-shaped wall

To those who don’t follow Treasury markets, Direct Match might sound like a ruthlessly efficient dating website. Go on one date with a partner meticulously chosen by high-powered algorithms, and end up married within a week.
In reality, Direct Match wa…

To those who don't follow Treasury markets, Direct Match might sound like a ruthlessly efficient dating website. Go on one date with a partner meticulously chosen by high-powered algorithms, and end up married within a week.

In reality, Direct Match was a trading platform attempting to upend the way investors buy and sell U.S. government securities.

It also appears to be closing down, according to a Business Insider post from Jim Greco, the company's founder.

Continue reading: A would-be disruptor hits a Treasury-market-shaped wall

An auction addendum…

So, while we were knee-deep in game theory trying to determine the best way to sell gilts, the Bank of England had some trouble buying them.

The BoE’s purchase of long-term government debt fell short of target Tuesday, which is noteworthy for plenty of reasons. One is that it’s yet another sign of that safe-asset shortage. But the thing is, the competitive bids are intermediated by banks and dealers. And that calls attention to a BIS paper from last month, which shows the results aren’t always pretty when economic policy collides with the zero-sum world of trading.

Continue reading: An auction addendum…

So, while we were knee-deep in game theory trying to determine the best way to sell gilts, the Bank of England had some trouble buying them.

The BoE's purchase of long-term government debt fell short of target Tuesday, which is noteworthy for plenty of reasons. One is that it's yet another sign of that safe-asset shortage. But the thing is, the competitive bids are intermediated by banks and dealers. And that calls attention to a BIS paper from last month, which shows the results aren't always pretty when economic policy collides with the zero-sum world of trading.

Continue reading: An auction addendum…