Federal Reserve Maintains Zero Treasury Bill Purchases

The Federal Reserve Bank of New York is maintaining a flexible approach to reserve management operations, keeping Treasury bill purchases at zero since mid-August. Roberto Perli, Manager of the System Open Market Account, announced the stance during the 2026 U.S. Treasury Market Conference, citing ample liquidity within the financial system.

Market stability was demonstrated by the system's capacity to absorb approximately $400 billion in net bill issuance throughout July and August without creating significant pressure on repo rates. Perli noted that while current conditions remain benign, the central bank is closely monitoring the market for an expected wave of heavy net bill issuance in October.

The Federal Reserve remains prepared to resume purchases if repo market pressures reemerge. This contingency ensures that reserves stay within the target range and prevents volatility during periods of high issuance.