On October 29, 2025, the Federal Open Market Committee (FOMC) provided additional information regarding plans for its securities holdings. Beginning in December, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will roll over at auction all principal payments from the Federal Reserve’s holdings of Treasury securities and will reinvest all principal payments from the Federal Reserve’s holdings of agency securities into Treasury bills through secondary market purchases.
Rollovers of principal payments from maturing Treasury securities will continue to be reinvested in new Treasury securities being issued on the maturity date. Rollovers will continue to be accomplished by placing non-competitive bids at Treasury auctions; the bids will be allocated across the securities being issued on each auction date in proportion to their announced offering amounts.
The Desk plans to distribute the monthly secondary market purchase amount across two Treasury bill sectors. The approximate amount of purchases in each sector over the monthly purchase period will be determined by sector weights. These sector weights will be based on the 12-month average of the par amount of Treasury bills outstanding in each sector relative to the total amount outstanding across the two sectors, initially measured at the end of September 2025. Further details on the sectors are provided in the Purchases FAQs linked below. The monthly amount of secondary market Treasury reinvestment purchases into Treasury bills will be announced on or around the ninth business day of each month alongside a tentative schedule of purchase operations expected to take place over the monthly period. The Desk plans to release the first schedule of purchase operations on December 11, 2025.
Additional information on Treasury reinvestment purchases can be found in the following locations:
FAQs: Treasury Reinvestments - Rollovers »
FAQs: Treasury Reinvestments - Purchases »
