U.S. Treasury Details Cash Balance Policy in Wake of Questions

The U.S. Treasury on Wednesday decided it was time to update the public on how it gauges the size of the cash buffer it needs, in the wake of a series of questions on the matter.

Tucked in a quarterly statement on debt-issuance policy on Wednesday was a three-paragraph explainer on the Treasury’s cash-balance policy. The process the department uses “often results in Treasury holding a cash balance above the minimum level necessary to meet its projected one-week ahead cash need,” the statement said.