The Federal Reserve Banks provide a range of fiscal agency services
to the U.S. government, for which they are reimbursed by the U.S. Treasury and other U.S. government agencies.
The U.S. Treasury issues debt in order to fund the U.S. government's operations and programs, and seeks to do so in a manner that achieves the lowest cost of funding for the U.S. taxpayer over time. The U.S. Treasury market is the largest and most liquid sovereign debt market in the world.
In its capacity as fiscal agent of the United States, the New York Fed supports Treasury's marketable securities auctions. The New York Fed also executes buybacks of Treasury debt as directed by Treasury.
The U.S. Treasury offers a wide variety of marketable securities to the public at auction, including bills, notes, bonds, floating-rate notes, and Treasury inflation-protected securities (TIPS). As fiscal agent of the United States, the New York Fed is responsible for conducting auctions and all auction-related settlement activities. The New York Fed also supports the U.S. Treasury by ensuring resiliency of critical auction functions and compliance with all auction rules and regulations.
U.S. Treasury securities purchased at auction are delivered to buyers through the Commerical Book-Entry System. Participation in U.S. Treasury auctions is open to a wide range of individuals and firms.
In 2024, the U.S. Treasury announced its intention to re-introduce debt buybacks as a tool for supporting liquidity in the Treasury market and to help U.S. Treasury better achieve debt management objectives.
As fiscal agent of the United States, the New York Fed conducts Treasury buyback operations when directed to do so by Treasury. The New York Fed conducts buyback operations with the primary dealers.