The U.S. Treasury started rebuilding its account through T-bills after the government's debt ceiling was suspended last month.
Since early June, the Treasury General Account at the Fed has increased by about $460 billion.
"The risk of reserve scarcity in the near-term has receded as more cash has left the RRP facility," said Gennadiy Goldberg, Head of US Rates Strategy at TD Securities USA.
"However, money market funds shifted their allocation out of the RRP facility into outright purchases of T-bills and private repo markets," they said.
Reporting by Davide Barbuscia; Editing by Dan Burns and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.
Persons:
Gennadiy Goldberg, Davide Barbuscia, Dan Burns, Andrea Ricci
Organizations:
YORK, Treasury, U.S . Treasury, Fed, Federal, Securities USA, Citi, repo, ON, Thomson
Locations:
U.S