NY Fed Treasury Purchases 0 to 1 yrs

It is one leg of System Open Market Account (SOMA) outright operations run under Federal Open Market Committee (FOMC) directives. Outright means the Desk, the New York Fed trading unit, buys securities to hold them. Coverage is nominal coupon securities with 0 to 1 year left to maturity, bought from primary dealers, in a published series starting July 22, 2010. It is not Treasury auction issuance, total SOMA holdings, Treasury buybacks, or the separate bill 0 to 1 year leg.

The Desk publishes a tentative monthly schedule on or around the 9th business day for the next mid to mid window. It gives dates, times, types, maturities, and maximums, yet some windows list no operations or no 0 to 1 year leg, and can change. Announcements post at the start, results go to dealers and the public page after the close, and settlement is next business day. Results list received, accepted, and per issue fills and are final as posted; pricing follows mid-month and names follow with a 2-year lag under Dodd-Frank.

The accepted figure reflects available securities, dealer offers, and operation caps.

• Accepted securities: par, face value, accepted per included security summed to the headline.
• Excluded issues: named securities barred at the start plus standing ineligible classes that enter nothing.
• Submitted propositions: total face value dealers offer alongside the result, showing demand but not added to the headline.
• Operation parameters: cap, bidding period, settlement timing, and pricing method shaping each print.

The December 23, 2024 small value nominal 0 to 1 year buy, in a year with no secondary-market buys outside readiness tests, shows the pattern. Dealers offered $1,486M and the Desk took exactly the $50M schedule maximum. 4 securities filled $27M, $20M, $1M, and $2M to sum to $50M while other lines took zero, and it settled December 24, 2024. Excluded lines included December 2024 maturers and other issues, and the sibling bill 0 to 1 year buy took $50M from $2,965M 6 days earlier.

1. Eligible set: Start with nominal coupon securities maturing in 0 to 1 year, then drop issues named at announcement and standing barred classes. No issue can exceed 70% Desk ownership.
2. Propositions: Dealers submit up to 9 bids per security in FedTrade Plus, the trading platform, during the window. Minimum amount, size, and increment are each $1M, and coupons are bid as prices.
3. Award: This is a multiple-price auction, so each fill pays its own bid. Fills rank by closeness to market prices plus a proprietary relative value score, subject to per-issue limits and the operation maximum.
4. Headline: Headline equals the sum of face value accepted across included securities, all in US dollars, for example $27M plus $20M plus $3M equals $50M. A disregarded $400M bid on an excluded issue leaves $50M accepted from $450M submitted, or 9x coverage. Totals submitted and accepted plus per issue fills post after the close, and average price, worst price, and share at worst price follow mid-month.
5. Settlement: Settlement is typically T+1, next business day, via Fedwire, the Fed settlement network. Fills join SOMA holdings, and H.4.1, the balance sheet release, shows net change from rollovers, reinvested maturities, buys, sales, and inflation compensation.
6. No adjustments: Amounts are raw face sums with no seasonal adjustment, no index weighting, and no annualized rate. Sector share weights belong to a separate monthly allocation framework, not these fixed maximum exercises.