Updated Issuance Roadmap Lowers End-June Cash Balance (1/2)

Treasury has today provided "additional guidance on bill issuance and cash balance" following the suspension of the debt limit through Jan 1 2025:

plans to increase issuance of bills "to continue financing the government and to gradually rebuild the cash balance over time to a level more consistent with Treasury’s cash balance policy." Other highlights of the release:

• Bill issuance will initially be focused on shorter-tenor and cash management bills, including a regular weekly 6-week cash management bill starting with a June 8 announcement.
• Notes that bill issuance between Jun 2-13 will result in an increase of bill supply of $131B and a cash balance by June 14 of around that level - augmented by June 15's tax receipts.
• Reminds that the May 1 refunding documents assumed an end-June cash level of $550B and end-Sep of $600B. The end-June expectation has been revised down to $425B, with a further increase in the balance expected in July, then a decline in August, before heading to $600B by end-Sep.
• "Treasury will carefully monitor market conditions and adjust its issuance plans as appropriate. Treasury will provide further updates about its issuance plans, including as part of the August refunding announcements."