The U.S. Treasury’s cash balance rose to the highest since October 2016

The U.S. Treasury’s cash balance rose to $435 billion as of Oct. 31, the highest since October 2016, according to data released Friday. That was an increase of $34 billion from its level the previous day. The Treasury department’s cash balance is parked with the U.S. central bank, and increases in it have are generally matched by decreases in the balances of other institutions with deposits at the Federal Reserve — in other words, banks. So while the Fed is currently seeking to bolster bank reserves, an increase in the Treasury’s cash balance could potentially be weighing against this. In its most recent financing estimates, the Treasury said it was assuming a cash balance at the end of this year of $410 billion. (Bloomberg)

China said Friday that it has reached a consensus with the U.S. in principle after a phone call among high-level trade negotiators this week. The Chinese Ministry of Commerce said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday. It said the two sides conducted “serious and constructive” discussions on “core” trade points and talked about arrangements for the next round of talks. (CNBC)

After the latest announcement on reduction in banks’ reserve requirement due in December, the Philippine central bank is taking a pause in monetary easing, according to Governor Benjamin Diokno. “We’ve done more than enough for the year,” he says Philippine central bank cut its key rate by 25bps for the 3rd time this year in September, bringing it to 4%. (Bloomberg)



Danareksa Sekuritas Debt Research