[20200720]IN11461_2019冠状病毒疾病时期的国债和回购.pdf

CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i Treasuries and Repo in the Time of COVID-19 July 20, 2020 Background: Three Roles for Treasuries The U.S. Treasury issues debt securitiesknown as Treasuriesthat play three critical roles in the economy: funding the government, supplying safe assets, and anchoring liquidity flows in financial markets. This Insight examines how the coronavirus pandemic has affected all three roles. Treasuries primarily serve as a means of government finance. The U.S. Treasury sells securities to obtain cash to fund government operations when revenues fall short of outlays. The Treasury issues bills, maturing within a year, to respond to short-term financing needs. Treasury notes, with maturities up to 10 years, and bonds, with longer maturities, help the government hedge against the risk of rising interest rates. Most Treasuries first sell in scheduled auctions and then trade in secondary markets. Investors hand over cash to purchase Treasuries to obtain assets essentially free of default risk that serve as a store of value as well as a safe haven against severe market or other unforeseen risks. Interest rate changes affect