A technical glitch in the Treasury's debt-auction system blocked Goldman Sachs' (GS) multi-billion dollar order for 90-day bills (BIL), altering pricing and leaving the bank empty-handed. A total of $30B in bills were moved, but Goldman - one of 21 primary dealers - was left out. When Treasury officials noticed the botched order, they allotted Goldman more six-month paper, which was being sold at the same time.
The snafu looks to have cost Treasury some money as the paper was priced to yield 0.02% at the auction vs. pricing of 0.013% prior to the sale.
The Treasury's auction system hasn't broken down in decades, say those familiar with it, and four auctions held since have come off just fine.