>> Yes, it comes in at the 'fair market bids' part No, you’re confused. The legally obligated “fair market bids” - a tongue in cheek term - isn’t conducted in

>> Yes, it comes in at the 'fair market bids' part No, you’re confused. The legally obligated “fair market bids” - a tongue in cheek term - isn’t conducted in dollars. I believe you’re thinking of the secondary market activity which occurs at a later time - where private buyers purchase from the primary dealer banks and those txns are in dollars. At the primary dealer purchase stage, the fed provides the funds to purchase via the PDCF. “The market” has precisely zero influence over this process. You’re kind of randomly firing in different directions with the last paragraph, its too removed from reality to make much of a useful comment on.