Treasury Cash Needs Combine With RRP Drop, Raising New U.S. Market Risk
The risk that’s not getting much talk in U.S. markets ahead of the holiday is the thin cash buffer under Treasuries. The Fed’s overnight reverse repo facility took in just $2.175 billion on Thursday. Treasury’s cash balance was $919.14 billion as of June 30. Based on the latest figures, the RRP pad is just 0.24% of Treasury cash.