3-Day Bill Sale Tomorrow Points To Last-Minute Cash Management

Treasury has just announced a $25B 3-day bill sale tomorrow, settling Friday (see 1100ET bullet).

• This is unusual but not a massive surprise under the circumstances - despite the increasingly likely passage of debt limit relief in the coming days, they need to manage cash ahead of a potential x-date of June 5.
• There may be more of these in the days to come - Treasury published a special statement yesterday to this effect alongside their usual bill announcement: "Treasury anticipates that issuance of several cash management bills (CMBs) will be necessary in the coming days. Treasury has enough headroom under the current debt limit to issue all of these securities. However, the cash raised by the issuance of these securities may be insufficient to satisfy all of the government's obligations if Congress has not raised or suspended the debt ceiling by June 5."