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Notably Larger Than Expected Treasury Deficit In July

US DATA
  • The budget deficit came in much larger than expected in July at $220.B (cons $135B) vs $211.1B a year ago.
  • Within that, interest on public debt accounted for $73B.
  • The adjusted budget deficit meanwhile increased 56% Y/Y to $306B according to Bloomberg.
  • The larger than expected deficit ties in with today’s further upsizing of sizes for Aug 14-15 bill sales (even if that was as expected). As noted earlier, these bills will settle on Aug 17 and raise a net $36B in cash for the Treasury.

$69B 13W BILL AUG 14, SETTLE AUG 17 (+$2B)

$62B 26W BILL AUG 14, SETTLE AUG 17 (+$2B)

$60B 42D BILL AUG 15, SETTLE AUG 17 (+$5B)

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