Treasury Closed Thursday With $34.9 Billion In Cash, Friday Likely $12 Billion Lower

And since Friday is always a heavy refund issuance day, it is probably safe to say that Treasury cash is now down in the lower $20 billion. Although we probably won't know: if the FMS is shutdown on Monday there will be no DTS debt report. Why is this important? Because in 8 hours this may be the snapshot cash for the US Treasury for a long time, or as long as it takes for the two parties to find a resolution over the glaring hole that is 0.001% of the budget deficit. Luckily, auctions will continue... For so long as the formal debt ceiling is finally breached, in a few weeks. Good luck with that negotiation.

And in non soap opera news, the total treasury buffers as of yesterday was $82 billion. Next week there is $66 billion in new debt issued and $19.2 billion in debt maturing, with $46.8 billion in net capacity taken out from the buffer, meaning after next week the Treasury will have $35 billion in total capacity left under the subject debt (even as the total debt is well over the actual ceiling), or just one 5 Year auction.

And the thing is that the total debt never passed the ceiling before. Obviously, the debt subject to limit has never crosse the line - that would be a US bankruptcy.


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