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The Federal Reserve is expected to continue arranging the next phase of treasury bill purchases when announcing the new reserve management purchase plan on Thursday. As liquidity is expected to decrease in the coming months, policymakers hope to use this to supplement reserves. Strategists at institutions such as Barclays and Deutsche Bank expect that in addition to reinvesting and purchasing maturing securities, the Federal Reserve will also buy $10 billion in treasury notes. At the same time, the Bank of America believes that in order to offset the financing pressure that may be brought about by increased supply, the Federal Reserve may increase the reserve management purchase scale to 15 billion US dollars, but there is also a high possibility that the current scale will remain the same until at least mid-September.
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The Federal Reserve is expected to continue arranging the next phase of treasury bill purchases when announcing the new reserve management purchase plan on Thursday. As liquidity is expected to decrease in the coming months, policymakers hope to use this to supplement reserves. Strategists at institutions such as Barclays and Deutsche Bank expect that in addition to reinvesting and purchasing maturing securities, the Federal Reserve will also buy $10 billion in treasury notes. At the same time, the Bank of America believes that in order to offset the financing pressure that may be brought about by increased supply, the Federal Reserve may increase the reserve management purchase scale to 15 billion US dollars, but there is also a high possibility that the current scale will remain the same until at least mid-September.
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