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.
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.