The institutionalization of treasury note and bond auctions, 1970-75.

Federal Reserve Bank of New York Economic Policy Review, May, 2004 by Garbade, Kenneth D.

* Despite the appeal of auctions as an effective way to offer securities, the U.S. Treasury failed in its first two attempts, in 1935 and 1963, to introduce a program of regular auction sales of long-term bonds.

* That pattern changed between 1970 and 1975, when the Treasury replaced its fixed-price offerings of notes and bonds with regular auctions--a practice that continues today.

* An analysis of the Treasury market suggests that the turnaround in the early 1970s owes to three key decisions: the Treasury closely imitated its successful and well-known bill auction process; ...