Terence P. Jeffrey
October 7, 2013
Although politicians and the press have generally referred to what has been happening in the federal government since Tuesday, Oct. 1 as in a “shutdown” or “partial shutdown,” that did not prevent the U.S. Treasury from being open for business on Thursday–the third day of the “shutdown” and issuing $106.291 billion in new debt, according to the Daily Treasury Statement released at 4:00 p.m. on Friday.
Despite selling that $106.291 in new Treasury securities, the net value of extant U.S. Treasury securities did not increase because on the Treasury also redeemed $111.330 billion in maturing Treasury securities. That means the net value of U.S. Treasury securities held by the public actually decreased by $5.039 billion.
However, the cash in the Treasury’s Federal Reserve account declined. At the start of Thursday, the Treasury had $57.533 cash on hand in that account. By the close of business on Thursday, the Treasury had only $24.453 billion cash on hand–a drop of $33.080 in cash.
Even though the net debt held by the public declined by $5.039 billion in Thursday, and the cash reserved declined by $33.080 billion, according to the Daily Treasury Statement, the same statement said the public debt subject to the legal limit set by Congress remained exactly $16,699,396,000,000. The Treasury has said the debt subject to the limit has closed the day at precisely that amount on every day since May 17.
This article was posted: Monday, October 7, 2013 at 5:07 am