Cash Management bills
are being used by the central bank to modulate liquidity, although they are short-term instruments that are normally used by the government to overcome temporary cash flow mismatches.
59 billion) of government cash management bills
every Monday, it said in a statement, without specifying for how many weeks the sales would last.
In addition, it could shrink the Federal Reserve's supplementary financing program, issue more cash management bills
, raid the exchange stabilization fund, sell its TARP investments more quickly, and sell its holdings of mortgage-backed securities from Fannie and Freddie, according to Reuters.
One action Treasury has undertaken has been to reduce its reliance on cash management bills
Separately yesterday, the Treasury Department announced plans to sell pounds 27billion of notes and bonds next week as well as $20 billion of cash management bills
to help finance government spending on everything from Social Security to national defence .
SOLD: The Treasury Department sold 36-day cash management bills
Thursday, the last leg of its quarterly refunding.
Of this amount, about $760 billion was from the increase in debt held by the public, which included $300 billion in cash management bills
issued in September 2008 under the Supplementary Financing Program initiated by Treasury.
SIMPLE TWIST OF RATE: The Treasury Department sold 42-day cash management bills
Wednesday at an average discount rate of 5.