A $202 billion US Treasury settlement hits September 30, and it could trigger a surprise move in Bitcoin
Treasury coupon supply meets calm financing, with SOFR and Bitcoin derivatives set to show whether pressure spreads. The post A $202 billion US Treasury settlement hits September 30, and it could trigger a surprise move in Bitcoin appeared first on CryptoSlate.
A $202 billion U.S. Treasury coupon settlement on Sept. 30 will test overnight financing at quarter-end. The Federal Home Loan Bank of New York says the market is calm for now but warns that net new supply could lift repo borrowing rates. Whether that pressure reaches Bitcoin is a separate, unobserved question.
The Treasury calendar puts a reopened 10-year inflation-protected bond and two-, five- and seven-year notes on Wednesday's settlement date. The TIPS, two-year, five-year and seven-year announcements set public face amounts of $19 billion, $69 billion, $70 billion and $44 billion, respectively, totaling $202 billion.
Treasury also estimates $143.58 billion of publicly held coupon debt will mature that day, leaving $58.42 billion of net new face value. That is a measure of securities issued beyond maturities, not an observed cash drain or fall in bank reserves. Auction prices, inflation adjustments and Treasury spending can change the cash effect. Bills auctioned just before quarter-end are scheduled to settle Oct. 1, outside this coupon figure.
Related ReadingThe New York Fed's current schedule calls for roughly $15.6 billion of reinvestment purchases over Sept. 15 to Oct. 14 but no reserve-management purchases. Those are different operations: the Fed continues replacing principal from maturing mortgage securities with Treasury bills, while its separate program for adding reserves is paused. New York Fed official Roberto Perli said Sept. 22 that reserves appeared ample and funding markets had remained orderly.