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.
PRESS RELEASE: US Treasury Announces Marketable Borrowing Estimates https://t.co/CNJ8akPK91— LiveSquawk (@LiveSquawk) July 29, 2019