Usage of the Federal Reserve’s overnight reverse repurchase facility fell to $22.344 billion on 19 August, the smallest daily total since the program was launched in March 2020 to absorb excess cash in money-market funds. Only 29 counterparties tapped the window, down from the hundreds that had routinely used it during the pandemic period when balances exceeded $2 trillion. The near-complete drawdown signals that the pool of surplus liquidity that had been financing heavy Treasury issuance is largely exhausted. Analysts note that the facility appears to have reached a technical floor near $22 billion, raising questions about where short-term funding markets will source cash as bill supply continues to grow. The liquidity backdrop will be tested again this week when the U.S. Treasury sells $100 billion of four-week bills on 21 August, settling on 26 August, with additional auctions scheduled over the coming days. Net new debt sales of more than $45 billion were already issued on 19 August, with a similar amount slated for 21 August and further sizable offerings next week.