US Federal Reserve begins release of Treasury bill purchases

Thursday, December 11, 2025 at 15:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Market Structure and Financial Stability Events

On December 11, 2025, in the aftermath of its third consecutive rate cut, the U.S. Federal Reserve began implementing a new Treasury bill purchase program, planning to acquire about US$40 billion of short-term government bills each month. The initiative is designed to add liquidity to money markets and help rebuild reserve levels that shrank due to previous balance sheet runoff. In its December policy statement and projections released the previous day, the Fed highlighted the need to support efficient functioning in short-term funding markets amid signs of tightening financial conditions. Although the scale of this program is modest compared with quantitative easing efforts during past crises, it remains significant in the current macro context of slower growth and lower inflation. The introduction of systematic bill purchases influenced yield expectations across the curve, reduced stress in repo and commercial paper markets, and was interpreted by investors as an accommodative backstop complementing rate cuts.

Overall market impact

Mild bullish market impact - strength score : 75/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US Treasuries

Money markets

USD FX

Global fixed income

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