US Treasury General Account dwindles to critical levels with less than $50B remaining

Quick Take

• The U.S. Treasury General Account (TGA) continues to beryllium depleted; arsenic of May 24, it had conscionable $49 billion near successful its coffers.
• This is the lowest fig successful the relationship since 2017 erstwhile the equilibrium fell to astir $23 billion.
• The Treasury’s General Account is the superior operating relationship for the United States authorities that services regular expenses.
• Treasury yields proceed to emergence and person been 9 retired of the 10 past trading sessions, according to MacroScope.
• House Speaker Kevin McCarthy believes an statement connected the debt ceiling volition beryllium reached, and negotiations volition continue  “24/7 to lick this problem”, according to MacroScope.
• Once an statement is reached, the TGA volition gully liquidity from the strategy and contented caller bonds to refill the account.
• Blake Davis, a macro analyst from Blockware Solutions, argues that this volition origin a terrible liquidity situation connected apical of the Fed’s continuing quantitative tightening.

TGA: (Source: FinanceLancelot)

TGA: (Source: FRED)

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