Reuters reports that the US Treasury has asked major banks if it should buy back some US government bonds to improve market liquidity.
Note that this isn’t the Fed, it’s the Treasury. This would have to be some kind of operation twist because the Treasury can’t print money.
So far the market reaction has been minimal after a quick dip in yields. US equities are at the lows of the day.
Update: The questions were part of the regular dealer survey.