US Treasury Poised to Unleash $1 Trillion in Bonds After Debt Ceiling Deal
The U.S. Treasury is poised to replenish its bank account at the Federal Reserve, now that the bipartisan debt ceiling agreement has been signed, sealed, and delivered.
The Treasury’s cash balance–the Treasury General Account (TGA)–sank below $23 billion on June 1, according to the Daily Treasury Statement. That compares to the roughly $316 billion at the beginning of May.
Market observers say there will be a near-record issuance of short-term U.S. government debt to refill the Treasury’s coffers quickly. It’s estimated that Washington could offer as much as $1.4 trillion in T-bills over the next six months to facilitate a return to balance, which could also resume funding daily needs and obligations….