The Federal Reserve submitted $10.4 billion in non-competitive bids at a September 22 auction of two-year Treasury notes, part of a $69 billion offering. The allocation represented about 15% of the auction and allows the Fed to replace maturing Treasury holdings in its System Open Market Account (SOMA) without affecting the auction-determined yield. The purchase falls under reserve management purchases (RMPs), launched in December 2025 after balance-sheet runoff ended in late November. The program permits purchases of Treasuries maturing within three years and initially operated at roughly $40 billion per month. The Fed has also reinvested maturing agency mortgage-backed securities into Treasury bills. Settlement is scheduled for September 30, placing the reserve injection at the end of the quarter, when bank balance-sheet pressures are typically elevated. The program is intended to support short-term funding markets and avoid reserve scarcity similar to the disruption seen in September 2019. The Fed’s balance sheet peaked at nearly $9 trillion in 2022 and remains in the trillions despite the runoff. The next key indicator is whether the central bank changes its monthly RMP pace.