US Treasury General AccountThe exhaustion of the fund in (TGA) has created an additional liquidity of approximately $ 500 billion since February. Because of the debt ceiling obstacle, the Treasury cannot issue new bonds. For this reason, he welcomes his expenditures from TGA. Thus, cash pumped to the system similarly to quantitative expansion (QE). However, stocks and Crypto Money Market This did not give the expected reaction to the print.
The increase in liquidity continues full gas
$ 500 billion added to the system liquidity He fed the reserves of the banks. Simply put the money in TGA decreased, the safes of commercial banks grew. This should move the prices of risky assets in theory, but it did not. Because investors are quite cautious.
Geopolitical tensions, Inflation concerns and the USA is uncertain economic policies It weakens confidence in risky markets. This trilogy causes risky assets to be wavy.
Future predictions for liquidity and prominent risks
In mid -June, companies’ quarterly tax payments will fill TGA. This can lead to temporary liquidity increase when combined with reverse repo mechanisms. Nevertheless, liquidity may be short -term decreases in this period. Then, if an agreement is reached on the debt ceiling, the Treasury’s accounts will fill rapidly. The new bond supply will absorb the liquidity. This can put pressure on asset prices.
If the “X-History” comes on, this X history points to the date that the government’s cash reserves will be exhausted. Analysts point to August for this. If the US Congress does not raise the debt ceiling until mid -July, an invitation will be invited to the liquidity crisis.
The economic calendar is also pushing the market. Tax, repo transactions liquidity flow It gets irregular. But the basic trend is up because the liquidity increases while TGA empties. The direction will change after the agreement. Experts recommend investors to manage a balanced portfolio management during this period.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
