What question did this study set out to answer?

This research aims to explore how the supply of Treasury debt influences its yield and investor behavior.

The Aggregate Demand for Treasury Debt

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Randomized trial shows the impact of Treasury supply changes on yield spreads, suggesting Treasuries are akin to money.

This research aims to explore how the supply of Treasury debt influences its yield and investor behavior.
Analyzed the relationship between Treasury supply and yield spreads between different assets.
Examined liquidity and safety characteristics of Treasuries versus other assets.
Used historical data from 1926 to 2008 to document trends in Treasury yields.
Treasury yields decreased by an average of 73 basis points from 1926 to 2008 due to changes in supply.
Significant effects of Treasury supply were observed on various yield spreads, affirming the demand for liquidity and safety.
The findings indicate that Treasuries function similarly to money in terms of investor demand.

Krishnamurthy et al. (2012) studied this question.

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