The Treasury will issue $170 billion in treasury bills around date X

• The Treasury Department plans to issue $170 billion in treasury bills around date X.
• The auctions will settle on June 1, which could be when the government runs out of money.
• Meanwhile, the government’s cash balance has fallen below $50 billion.

The Treasury Department plans to issue about $170 billion in notes around the time the government is expected to run out of cash, unless lawmakers raise the debt ceiling.

On Tuesday, the Treasury will auction $119 billion worth of three- and six-month bills, with sales resolving two days later on June 1. He will also issue a six-month, $50 billion cash management bill that will be settled on June 1. Also.

Fears of a default eased as lawmakers indicated they were close to an agreement to raise the debt ceiling. But leading Tories remain wary, and with the deadline just days away, there’s little margin for error.

Treasury Secretary Janet Yellen repeated this week that the government will run out of money by June 1.

But next week’s scheduled auction of $170 billion in Treasuries could suggest the Treasury still has some leeway under its ‘extraordinary measures’ and that June 1 may not be a deadline.

Meanwhile, the government’s cash balance continues to decline. On Wednesday, the Treasury’s general account stood at $49.5 billion, down from $60.7 billion last Friday and $140 billion two weeks ago.

The Treasury General Account is used to pay debt service on government bonds – preventing the United States from defaulting – among myriad other expenses such as federal employee fees and salaries.

That cash will be under pressure next week, as June 1 is also the maturity date for $117 billion in Treasuries, according to Reuters.

The Treasury account fluctuates daily as tax receipts come in and payments go out, making it difficult to predict exactly when the government will run out of money. Goldman Sachs analysts previously predicted the X date could fall between June 8 and June 9.

If Treasury liquidity runs out before a deal is struck, the United States would go into default, fueling an unprecedented economic crisis that could trigger a global recession. The odds of the government going past X date without a debt ceiling deal are 25% and rising, JPMorgan estimated.