As debt ceiling stress recedes, new trends appear. This is the markets, a new series from Goldman

Sachs exchanges.

Hi, I'm Sam Grobart. Today I'm joined by Beth Hanick, co-head of the Global Financing Group in Global Banking and Markets,

and we're going to talk, hopefully for the very last time, about the debt ceiling, as well as a return to watching the

Fed's next move and stock market performance around the world. Beth, thanks for

joining us today. Thanks so much for having me. So listen we've got a lot of news that's been coming out this week.

Given the recent agreement in Washington, it looks like the U.S. Treasury is going to be issuing

around $1 trillion of debt in the next six months.

Who will be the buyers of that debt?

So Treasury is going to have to rebuild its cash balance,

what they call their Treasury General Account, the TGA.

And so to do that, you're exactly right.

They're going to have to be issuing in the markets

at a pretty rapid clip.

The market expectation is most of that issuance

will be happening in T-Bills

with a very short end of the yield curve.

And so the real debate that's going on in the

marketplace is is that funding going to come out of bank reserves or is it going to

come out of the Fed's RRP program? And what's the RRP program? So the RRP

program is a place where money market funds typically

can actually engage in reverse repo with the New York Fed.

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