From the CI SBH Fixed Income Team

The rebuild of the Treasury General Account—the government's checking account—could have implications for market liquidity and volatility. The chart below shows the daily closing balance in the Treasury General Account from June 2022 through August 8, 2025.

  • Treasury General Account (TGA) balances are held at the Federal Reserve and are not directly accessible to market participants. A decrease in the TGA reflects Treasury spending, which injects liquidity into the financial system. Conversely, an increase in the TGA—typically through tax receipts or debt issuance—withdraws liquidity from the financial system.
  • At the beginning of 2025, the U.S. government reached its statutory debt limit and relied on the TGA to fund its spending obligations. Consequently, the TGA declined from $677 billion on January 2 to a low of $282 billion by July 11.
  • Following the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, the Treasury was authorized to issue debt to fund government obligations and replenish the TGA. The Treasury has set a target balance of $850 billion for the TGA.
  • The last significant drawdown and replenishment of the Treasury General Account (TGA) occurred in 2023. Its impact on financial markets was limited, largely due to the $2.2 trillion in excess liquidity held in the Federal Reserve’s Overnight Reverse Repo Facility (RRP). As of August 8, the RRP balance has declined to just $80 billion. For this reason, the Treasury may need to rely on sources that could withdraw liquidity from the financial system to replenish the TGA.

Source: US Treasury, data as of 8/8/2025

 

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