The U.S. Treasury plans to raise the TGA balance to about $1 trillion

The U.S. Treasury plans to raise the balance of the Treasury General Account (TGA) to about $900 billion by the end of June and to about $1 trillion by the end of July.

Analysis suggests that replenishing the TGA will withdraw liquidity from the financial system, while the current balance of the U.S. reverse repurchase agreements (RRP) has fallen from over $2.5 trillion in 2022 to less than $100 billion, which may put pressure on risk assets such as Bitcoin as future bond issuance could further consume bank reserves.