**[Barclays: U.S. Treasury Bill Market Can Absorb Larger-Scale Bond Buybacks]** Golden Finance reported on August 27 that Barclays stated the U.S. Treasury bill market is capable of absorbing the impact of expanded bond buyback operations, while the upper limit of short-term debt issuance depends on whether the U.S. Treasury is willing to continue expanding this market. Barclays strategist Samuel Earl wrote in a report: "The market's capacity to absorb Treasury bill issuance is very robust." He noted, "In July and August, the U.S. Treasury is expected to net issue approximately $500 billion in new Treasury bills to the private sector, and the Treasury bill market has been virtually unaffected." Earl stated, "Even if funding for buybacks is provided by permanently reducing the Treasury's general account balance, the U.S. Treasury cannot avoid increasing the private sector's holdings of Treasury bills." He added that a decline in the Treasury's general account balance would increase bank reserves, and "the Federal Reserve is likely to offset the increase in reserves by reducing RMP (Reserve Management Purchases) demand for Treasury bills." Barclays indicated that rather than the Treasury bill market being a "hard constraint on expanding buyback programs," the "actual limitation lies in how much the U.S. Treasury is willing to increase the proportion of Treasury bills in outstanding debt." Earl stated that if future Treasury bill issuance begins to "disrupt the money market," "the Federal Reserve can fully increase RMP to absorb the supply of Treasury bills in the market and offset such impacts."