Fed Purchases $90B in T-Bills Since Dec 2025; Stabilizes Borrowing Costs

The Federal Reserve has purchased more than $90 billion in short-dated U.S. Treasury bills since Dec. 12, 2025, according to the Treasury Department’s quarterly refunding announcement on Feb. 5, 2026. These purchases are maintaining stability in overnight funding markets and keeping short- and long-term interest rates roughly steady, easing pressure on home and business borrowing. The Fed characterizes the activity as a technical measure to ensure smooth operation of short-term money markets. By providing liquidity and reducing volatility, it is helping to keep borrowing costs stable for consumers and businesses, with yields on Treasuries ranging from 1-month (BX:TMUBMUSD01M) to 30-year (BX:TMUBMUSD30Y) largely unchanged during trading on Feb. 5. Economists note the Fed’s December plan to buy T-bills has calmed markets and provided central bank flexibility to purchase additional Treasurys beyond short-dated bills, reducing potential contagion to longer maturities and supporting a more stable environment for interest rates.