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Updated · Seeking Alpha · Jul 19Treasury Issues $90 Billion in Bills, Extending July Liquidity Drain
3 articles · Updated · Seeking Alpha · Jul 19Summary
- $90 billion in net new Treasury bill issuance hit the market this week, extending the liquidity drain that began at the start of July.
- That supply marks a sharp increase from roughly $65 billion last week, indicating the drain on market liquidity has intensified.
- The latest issuance keeps pressure on cash conditions as the Treasury continues to absorb funds through short-term borrowing.
Insights
With the Fed tightening, can the US government's massive borrowing continue without triggering a financial crisis? As foreign central banks favor gold over Treasuries, is the dollar's safe-haven status quietly eroding?