[Barclays: The U.S. Treasury market can digest a larger scale of Treasury repurchases] On August 27, Barclays stated that the U.S. Treasury market can digest the impact of expanding the scale of bond repurchases, and the upper limit of short-term debt issuance depends on whether the U.S. Treasury Department is willing to continue to expand this market. Barclays strategist Samuel "The market's ability to absorb Treasury issuance is very strong," Earl wrote in a note. "In July and August, the U.S. Treasury is expected to issue about $500 billion in net new Treasury bills to the private sector, with little impact on the Treasury market," Earl said. "Even if repurchases are funded by a permanent reduction in the Treasury general account balance, the U.S. Treasury cannot avoid increasing private sector holdings." Treasury bills." He added that the decline in the Treasury's general account balance will increase bank reserves, and "the Fed will likely offset the increase in reserves by reducing the demand for Treasury bills through RMP (reserve management purchases)." Barclays said that rather than the Treasury market becoming a "hard constraint on expanding the repurchase program," "the real limit is how much the U.S. Treasury is willing to increase the proportion of Treasury bills as a share of outstanding debt." If Treasury issuance begins to "disrupt money markets" in the future, Earl said, "the Fed can definitely increase RMP to offset that effect by absorbing the supply of Treasury bills in the market."