Why Government Bond Auctions Are Rigged Against Retail Investors

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jul 8, 2026 · 10m · transcript

Lucas and Luna dig into the mechanics of government bond auctions — specifically how the primary dealer system and the single-price auction format systematically disadvantage individual investors while favoring large banks. They walk through how the Treasury sells $3 trillion in debt every year, the role of the 24 primary dealers, and the surprising fact that retail investors almost never get the same yield as institutional bidders. They also touch on a proposed reform from the Treasury Borrowing Advisory Committee that would give non-dealers a fairer shot. If you've ever bought a…