Wednesday, July 31, 2019

US Treasury Announces New Securities Issuance Estimates

New UST issuance estimates for July/Aug/Sept quarter now assuming an imminent suspension of the 'debt ceiling':   $271b increase.

TGA target balance for end of this quarter is also increased to $350b almost $200b higher than recent.  Close to a $200b decrease in Reserve Assets at the Depositories in about 2 months time...

Fed still planning on lowering reserves at the system level by another $35b per month for those same two months so another $70b reduction there over the same August-September time interval.

Latest H.4.1 reported Reserves at Depositories at $1,525T so balances of these non-risk assets at the banks may fall well below $1.5T in the next two months .. towards $1.2T.