U.S. Treasury Plans to Raise TGA Balance to $900 Billion by Late June and $1 Trillion by Late July

The U.S. Treasury plans to increase the Treasury General Account balance to about $900 billion by the end of June and to about $1 trillion by the end of July. According to ChainCatcher, analysts said replenishing the TGA would withdraw liquidity from the financial system. They noted that the Federal Reserve’s reverse repo facility balance has fallen to under $100 billion from a peak above $2.5 trillion in 2022, meaning future Treasury issuance could draw more heavily on bank reserves. The analysis said this liquidity drain could add pressure to risk assets such as Bitcoin.