Consensus has largely been that the Treasury General Account (TGA) would adhere to the Treasury's own assumption of winding down cash levels to $450B by the end of July, in preparation for the debt ceiling deadline.
But the Treasury doesn't seem to be any hurry to bring its operating cash levels down, and MNI's Policy Team cites an ex-Fed economist who expects Treasury to keep a cash balance closer to $600B at end-July.
If the TGA doesn't shrink as quickly as many anticipate, growth in reserves and downward pressure on funding rates could be somewhat lessened vs baseline.

PLEASE USE THE FOLLOWING LINK TO ACCESS FULL PDF ANALYSIS:

FedBalanceSheet-Jul092021.pdf

Source: Federal Reserve, MNI

Balance Sheet Analysis Homepage

Tim Cooper

Balance Sheet Analysis Homepage

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Fed Balance Sheet Tracker - Jul 9, 2021

EXECUTIVE SUMMARY: