Francis Brooke, the recently confirmed deputy to U.S. Treasury Secretary Scott Bessent, stated that while the issuance of Treasury bills (with maturities under one year) has risen notably over the past few months, investor demand has absorbed the new supply exceptionally well.

Speaking Tuesday at a New York Federal Reserve conference on the U.S. Treasury market, Brooke noted, "During July and August, we increased net Treasury bill supply by more than $550 billion, an increase of roughly 8%." He added, "Notably, the money market has clearly absorbed this significant jump in bill issuance with great ease, as auction participation remains strong and there are clear signs of robust end-investor demand."

Brooke mentioned that money market funds have taken in about 85% of the new supply, with only limited stress observed in funding markets. He said the Treasury continues to monitor "all structural sources of demand" for U.S. government debt, including banks, money market funds, the Federal Reserve, and stablecoins. "The department will keep a close watch on these trends to optimize the issuance of Treasury securities."

As deadlines for the move to central clearing of Treasury securities approach at the end of this year and in mid-2027, "we are closely tracking industry implementation to ensure a smooth transition." He also stated, "We continue to refine and expand the Treasury buyback program."

Brooke added that the new, upgraded Treasury auction system, which the department announced last year, is now in its final testing phase. "I am pleased to announce that we plan to switch over to the new auction system in the coming months."