U.S. Treasury General Account (TGA) sees significant downward trend for the first time, market liquidity expected to improve

BlockBeats News, November 19th, the latest data shows a significant decline in the U.S. Treasury General Account (TGA) cash balance for the first time: Treasury cash decreased from $959 billion to $925 billion, a $340 billion drop.

J.P. Morgan's trading desk believes that repo market pressure was a key driver of this month's stock market reversal. Due to a combination of government shutdown, TGA growth, and Quantitative Tightening (QT), the U.S. Treasury had previously absorbed a large amount of capital, leading to a deterioration in cash availability within the financial system.

Now, the U.S. Treasury has started releasing funds, and market liquidity is expected to improve. (Wall Street News)