#MEMEAct SOMA = Open Market Account
This is a portfolio of U.S. Treasury securities and agency securities of the Fed.
Managed by NY Fed, this fund is used to implement monetary policy.
š Why does SOMA buy in this auction?
These are reinvestment purchases, not QE.
When bonds mature on the Fed's balance sheet, SOMA will reinvest cash into new Treasury securities ā to maintain its size.