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

Quick Take

The U.S. Treasury General Account (TGA) continues to be depleted; as of May 24, it had just $49 billion left in its coffers.
This is the lowest number in the account since 2017 when the balance fell to around $23 billion.
The Treasury’s General Account is the primary operating account for the United States government that services daily expenses.
Treasury yields continue to rise and have been nine out of the ten past trading sessions, according to MacroScope.
House Speaker Kevin McCarthy believes an agreement on the debt ceiling will be reached, and negotiations will continue  “24/7 to solve this problem”, according to MacroScope.
Once an agreement is reached, the TGA will draw liquidity from the system and issue new bonds to refill the account.
Blake Davis, a macro analyst from Blockware Solutions, argues that this will cause a severe liquidity crisis on top of the Fed’s continuing quantitative tightening.

 

TGA: (Source: FinanceLancelot)
TGA: (Source: FRED)

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