MarketWatch writes "Treasury shows openness to increasing issuance in wake of money-market fund reform". The piece says, "The Treasury Department is looking at changing its issuance of short-term bills in the wake of money-market fund reform that has increased demand for government-issued securities. In questions to primary dealers released on Friday, the department asked what the optimum level of bills should be, as well whether the conversion from prime to government-only money market funds in line with expectations. A Treasury official said the agency is satisfied with the way liquidity has held up in the wake of the rules, which went into effect on Friday. The Securities and Exchange Commission is forcing institutional prime money market funds to move from a fixed $1 per share net asset value to a floating NAV. That's had the effect of shifting demand toward funds that only invest in government securities."

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