The passage of the Big Beautiful Bill unleashes a wave of bill issuance that will drawdown reserves enough to give more dovish leaning Fed members a reason to end QT. With the debt ceiling lifted, Treasury will seek to rebuild its cash holdings from the current $370b to a target of $850b over the coming weeks. This will drain RRP balances to zero, push reserve levels to multi-year lows, and place upward pressure on repo […]