How the Fed’s End to QT Might Be a Boost for the Treasury

Core Insights - The Federal Reserve plans to conclude the reduction of its aggregate securities holdings on December 1, which will support market liquidity by reinvesting cash from maturing debt back into the market [1][2]. Group 1 - The Fed will reinvest money from maturing agency securities into Treasury bills, which are U.S. debt securities expiring in a year or less [2]. - Money from maturing Treasury securities will also be reinvested in Treasury debt, maintaining the central bank's balance sheet [2].