when you use a phrase like "How did the funds get into those accounts?" you are still operating in this 2 millenium old at least paradigm with coins and bowls and jars. It's like you're saying "How did the denarius get in the bowl?" We dont have coins and jars today, we do it all on computers. There is no "physicality" to what we do today; it is all abstract and on integrated computer information systems operated under govt law/regulations. So you cannot say "Where does something come from?" or some such thing; it is completely inapplicable to the specifics of today's monetary arrangements. I hope this helps you perhaps see a way out of your current paradigm you have been conditioned to operate within. Matt can you help me? Where can I find an official document about FED that does a repo before Treasury auction? (I know it's off topic) Matt Franko Reply: August 26th, 2011 at 8:01 am @Andrew , I dont think one exists. I have read descriptions of monetary operations by Profs Fullwiler and Kelton I believe that to me suggest that if settlement balances are not available to settle the Treasury auctions, than as usual, the Fed will perhaps do a repo to provide the settlement balances to settle the auction, but that is as close as Ive come to an official document that describes/authorizes the process. I would not think that the Fed providing settlement balances to (in this case) settle a Treasury auction