MW: Treasury: 'Severe dislocations' in market for notes, bonds
By Greg Robb
WASHINGTON (MarketWatch) -- Treasury said it will reopen multiple securities across maturities to combat "severe dislocations" in the market for notes and bonds, a Treasury official said Wednesday. High demand for Treasury securities is causing acute, protracted shortages is several securities, the official said. This has called settlement fails. The move is also being taken because Treasury has massive upcoming borrowing needs to fund the $700 billion mortgage rescue plan signed into last week, the official said. Treasury said it will work with market participants and regulators to identify remedies to prevent a reoccurrence of these fails in the future.
