US TREASURY SIDELIGHT: Primary dealers asked for input on 'enhanced' buyback program and on bill issuance

Discussion Topics

1. Please discuss your latest economic, fiscal, monetary policy (including changes in SOMA holdings), and Treasury

financing forecasts for FY 2025, FY 2026, and FY 2027.

2. In the May 2025 quarterly refunding statement, Treasury announced that it is evaluating a broad range possible

enhancements to the buyback program, such as: changes to maximum purchase amounts, buyback operation

scheduling and frequency, security eligibility, maturity bucket composition, execution process, and counterparty

eligibility. Treasury also highlighted its commitment to engaging with a wide range of market participants,

including the primary dealers and Treasury Borrowing Advisory Committee, on this topic.

Please provide input on these or other possible enhancements to the buyback program. For example, what factors

should Treasury consider in evaluating changes to maximum purchase amounts? Are there certain buyback

sectors where either increases or decreases in purchase maximums are warranted? What changes to the buyback

schedule, if any, would help to further Treasury’s liquidity support goals? Are there any other buyback

enhancements not listed in the quarterly refunding statement that Treasury should consider?

3. On July 8, Treasury provided additional guidance on its bill issuance and cash balance following the increase to

the debt limit. What factors should Treasury consider when determining Treasury bill issuance to gradually

rebuild the cash balance over time to a level more consistent with its cash balance policy? Please estimate the

market’s capacity, over both a monthly and quarterly basis, for additional Treasury bill issuance that would not

cause significant price deviations in Treasury bills relative to fair value.