**[Fed's Bond Purchase Exceeds Expectations, Prompting Wall Street to Revise 2026 Forecast]**
The Federal Reserve plans to purchase $40 billion in short-term U.S. Treasury bonds monthly, exceeding market expectations and driving borrowing costs lower, prompting Wall Street banks to revise their 2026 debt issuance forecasts. Barclays estimates that the Fed's total bond purchases by 2026 will reach nearly $525 billion, while JPMorgan Chase and TD Securities also believe the Fed will absorb a larger scale of debt. Bank of America predicts that this pace of purchases will need to be sustained for a longer period to replenish reserves and stabilize money market rates. Strategists point out that these measures will help ease market pressures, benefiting swap spreads and SOFR-Fed funds basis trades. On Wednesday, short-term interest rate futures trading volume surged, and the two-year swap spread widened to its highest level since April.