Fed’s year-end liquidity push calms US bond markets ahead of seasonal funding pressure
Published on: Dec. 18, 2025, 11:19 a.m. | Source: The Economic Times
U.S. bond markets are heading into year-end with unusual calm as the Federal Reserve ramps up Treasury bill purchases to ease seasonal liquidity stress. By boosting banking system reserves, the Fed has lowered repo funding concerns, narrowed spreads versus policy rates, and reduced fears of disruptive year-end funding pressures seen in past cycles.
