Rare U.S. Market Holiday on April 15 Is a Cash-Flow Headache for Bondholders
- Treasury auction settlement delayed from Friday to Monday
- It argues for relaxed bank leverage ratio rule: Wrightson
The U.S. Treasury building in Washington, D.C.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Next month’s Easter holiday in the U.S. is poised to create cash-flow headaches for the Federal Reserve and investors in Treasury debt.
With U.S. markets slated to be closed on Friday, April 15, the Treasury Department opted to delay settlement of the notes and bonds to be auctioned earlier that week until Monday, April 18. But because it’s not a federal holiday the department will hand investors $69 billion in redemptions and interest payments on April 15 as scheduled, leaving recipients, who normally would roll the proceeds into the new issues, without a home for them.