Failed Treasury Trades Surge to Highest Since Financial Crisis
- Uncompleted deals rise as 10-year note sought in repo
- `Special' financing status has eased since new debt was sold
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A shortage of benchmark 10-year notes in the market for borrowing and lending U.S. government debt caused uncompleted trades to surge last week to the highest since the financial crisis.
Total settlement delivery failures for all Treasuries, excluding inflation-protected securities, were $456 billion for the week ended March 9, the most since 2008, when fails set a record $2.7 trillion, Federal Reserve Bank of New York data show. So-called fails for 10-year notes climbed last week to $63.3 billion, from $32.3 billion the week before. It was the highest since at least April 2013, when the Fed began reporting the figures for specific maturities.