tldrdaily.news logo
Tag

T Bills

All articles tagged with #t bills

finance2 years ago

St. Louis Fed Warns of T-Bill Deluge Draining Bank Reserves

The St. Louis Fed warns that the deluge of Treasury bills being sold by the US Treasury could drain bank reserves and potentially disrupt the banking system. As the government suspended the debt ceiling, the Treasury has sold about $1 trillion of bills since June, and the cash to buy this debt can come from bank accounts or money market funds. If too much money comes from the banking system, lenders may face a shortage of reserves to meet regulatory requirements, forcing the Federal Reserve to halt its quantitative tightening program. However, if money drains out of money market funds, the impact on the financial system is expected to be manageable. The Treasury is estimated to issue another $600 billion of T-bills by year-end.

via Yahoo Finance|
#bank-reserves#federal-reserve#finance
economy2 years ago

Expert predicts impending recession and changing economic landscape.

Economist Steve Blitz warns that a U.S. recession may be imminent as banks slow lending and corporate profits weaken. The Treasury's plan to issue T-bills to replenish its coffers could divert even more money away from markets and the economy. Signs of slowing corporate earnings growth could push the economy over the edge, leading to more layoffs and a slowdown in wage growth. Blitz also cites a drop in railcar loadings of lumber and metal products as a sign that a recent uptick in the manufacturing economy is already fading. Even if the U.S. manages to delay a recession, the Federal Reserve and markets could face other problems, like a resurgence of inflation.

via MarketWatch|
#bank-lending#corporate-profits#economy
finance2 years ago

US Treasury's Massive Borrowing Drive Raises Concerns for Markets and Banks.

The Treasury Department is expected to issue $1.6 trillion in T-bills this year as it rebuilds its cash balance following the debt ceiling crisis. Analysts at Deutsche Bank estimated that $1.3 trillion in T-bills will be issued over the remainder of 2023, bringing the total for the full year to about $1.6 trillion. The issuance of T-bills will suck up liquidity from the financial system, potentially weighing on markets.

via Yahoo Finance|
#borrowing#debt-ceiling#finance
finance2 years ago

Treasury to Issue $170 Billion in T-Bills Ahead of X-Date Deadline

The Treasury Department plans to issue $170 billion in T-bills around the X-date, which is when the government is expected to run out of cash unless lawmakers raise the debt ceiling. The auctions will settle on June 1, the same day the government's cash balance is expected to dip below $50 billion. If the Treasury's cash runs out before a settled agreement, the US would enter a default, fueling an unprecedented economic crisis that could initiate a global recession.

via Markets Insider|
#cash-balance#debt-ceiling#default
finance2 years ago

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.

via Yahoo Finance|
#debt-ceiling#finance#financial-markets
finance2 years ago

US Treasury faces cash shortage within weeks unless debt limit raised

The Treasury Department may 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 necessary to replenish the Treasury's cash balance, which has been depleted due to the pandemic. However, this could drain liquidity out of financial markets in a short period of time, 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.

via Markets Insider|
#debt-ceiling#finance#financial-markets
finance2 years ago

Navigating the US Debt Ceiling Debate: Options and Risks.

The stalemate in Washington over raising the US debt limit has raised the risk of a default as early as June, which threatens a fresh rout in financial markets. While analysts reckon a crisis will be averted, just an increased probability of default would send shock waves across markets. Here are five ways to position yourself: play T-bills, buy credit default swaps, buy the yen, invest in companies exposed to government spending, and buy gold against the dollar.

via Reuters|
#credit-default-swaps#finance#financial-markets