Treasury market is the market which deals with sale or purchase
of government treasury securities . As part of monetary policy
federal reserve uses repo market to increase liquidity or reduce
liquidity in the economy.
Participants of repo market are investment banks, market makers ,US
Federal Reserve,etc.
Specific policy mesures and their reasons
1. The US fedreal Reserve have cut interest rates to 0% to increase
liquidity and borrowing in the market. This would ecourage the
economy to spend and overcome the recesion induced by COVID
19.
2. QE (Quantitative Easing): It is the process in which the US
Federal reserve purchases securities which was done in 2008
cfinancial crisis. It is used to inject liquidity in the
economy.
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