The Federal Reserve's suspension of Treasury bill purchases was unexpected, and Wall Street expects the pause to last at least until October.

After the Federal Reserve announced that it would not purchase U.S. Treasury bonds for reserve management purposes during the next operational period, Wall Street strategists are adjusting their expectations for the future monthly Treasury bond purchase scale. This decision by the Federal Reserve marks the first suspension of such purchases since the reserve management purchase program was launched in December 2025, with the suspension period lasting until the monthly operational period ending September 14. The Federal Reserve indicated that it still plans to conduct approximately $17 billion in reinvestment purchases during this time. This move has taken strategists by surprise. Previously, the market widely anticipated that Federal Reserve policymakers would maintain the scale of reserve management purchases at $10 billion, with Bank of America even considering the possibility of an increase to $15 billion. Now, strategists from Bank of America, Wells Fargo, and TD Securities expect that the suspension of reserve management purchases will last at least until October, after which they may resume.