JPMorgan, Barclays See Fed Grabbing Major Chunk of Bill Issuance

The Federal Reserve’s plan to buy $40 billion of Treasury bills a month, a bigger chunk than previously expected, triggered a flurry of revisions in Wall Street banks’ 2026 debt issuance forecasts while sending borrowing costs lower.

The central bank said it will start buying bills Friday in a bid to ease short-term interest rates by rebuilding reserves in the financial system.

Barclays estimates the Fed could wind up buying close to $525 billion of T-bills in 2026 from a previous forecast of $345 billion, with net issuance to private investors estimated at just $220 billion from $400 billion previously. ...