What Happens Immediately After August 2?

Joe Weisenthal | Jul. 21, 2011, 6:38 AM


From Goldman: What Happens Immediately After August 2?



August 2: Treasury exhausts financing options. August 2 is the last day that the Treasury seems likely to be able to make all of its scheduled payments under the current borrowing limit.

August 3: Social security payments. Roughly $23 billion in Social Security payments are scheduled to be made on August 3, as they are made on the first Wednesday of every month. This, along with other spending that might be delayed, could provide political motivation to reach an agreement on at least a short-term extension.

August 3: Treasury quarterly refunding announcement. The Treasury is expected to announce its financing plans, as it does each quarter.

August 9-11: 3-year note, 10-year note, and 30-year bond auctions. These auctions settle the same day as the Treasury coupon payment, on August 15.

August 15: Treasury coupon payment. Treasury must make around $30 billion in payments to holders of securities. The scheduled payments are expected to exceed revenues that day, but in the very unlikely event that the debt limit hasn't been increased by this point, it is likely that the Treasury would have conserved cash in order to make the payment.

Read more: http://www.businessinsider.com/from-goldman-what-happens-after-august-2-2011-7?utm_source=Triggermail&utm_medium=email&utm_term=Business%20Insider%20Select&utm_campaign=BI_Select_072111#ixzz1SnIuTFrz

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