Since August 1st, and the expiration of the debt ceiling suspension, the US Treasury has been using extraordinary measures to meet its budget obligations. This has resulted in a reduction of US Treasury debt supply and lower yields at the very front-end of the yield curve. As mentioned in prior writeups, we had anticipated lower rates given the expected paydowns. This supported our strategy of adding Treasury bill (T-bill) positions at or above 5 basis points (bps) coupled with buying SOFR and Treasury floating rate notes that would reset higher once T-bill issuance increased. Although, as we continue to sit in the uncertainty of a debt ceiling resolution, it has become increasingly difficult to find 5 bps yields on the curve. For example, the 6-month T-Bill auction stopped at 4.5 bps the week of September 18th, illustrating the sheer demand for short-dated US Treasuries and the magnitude of cash in the system. Consequently, we have shifted away from purchasing T-bills in any meaningful size, and subsequently have increased our overnight repo orders, which can still offer 5 bps of return. We are able to utilize both dealer offered repo in the open market and the RRP with the Federal Reserve (Fed). We have continued to purchase SOFR floaters and Treasury floaters when attractive. Those positions add a pickup in yield over repo, add some term structure to our portfolios, and will benefit once the debt ceiling issue has been resolved and the reduction in quantitative easing (QE) has begun. But when do we think that will be?