US Treasury's Cash Reserves to Run Out in Less Than Three Weeks, Goldman Sachs Warns

The US Treasury Department is expected to issue $600 billion-$700 billion in T-bills within six to eight weeks of a debt-ceiling deal, according to Goldman Sachs. This move is aimed at replenishing the Treasury's cash balance, which could drain liquidity out of financial markets in a short period of time. The Treasury is expected to supply the market with more than $1 trillion of T-bills on a net basis this year, which could have an equivalent impact on the economy as a Federal Reserve rate hike of 25 basis points, according to Bank of America analysts.