invest in money-market funds should be prepared for a bumpy ride as the Treasury unleashes its bill supply.Money-market funds have seen a surge in assets since March, topping $5 trillion, as investors pulled their deposits from banks after the collapse of Silicon Valley Bank. This could play a role in the upcoming debt-ceiling drama. The Federal Reserve’s reverse repo facility has seen at least $2 trillion consistently sitting overnight, and market expectations are for heavy short-term Treasury bill issuance. President Joe Biden and House Speaker Kevin McCarthy have met to discuss potential ways to raise the $31.4 trillion borrowing limit and avoid a default.
Treasury cash balances have dwindled to less than $100 billion, and Barclays strategists estimate it may fall below $50 billion between June 5-15. When the battle over the debt limit ends in a resolution, longer-dated Treasury yields are expected to increase. Investors have been avoiding ultrashort Treasurys in favor of 2, 3 or 4-year bonds offering some of the highest yields in years. Ultimately, cooler heads are expected to prevail in Washington, and the worst economic outcome will have been removed.Comcast, the leading cable and internet provider, is launching a new streaming service for $20 a month. The service will offer cable-like live-TV streaming, allowing customers to watch their favorite shows and movies without the need for a cable subscription. This is a great option for those who want to save money on their monthly bills.rnrnThe US government recently reached a debt-ceiling deal, which will result in a deluge of Treasury bills. This has sparked a new worry: who will buy them?rnrnA $60 million marijuana startup co-owned by a famous rapper has been revealed to be a Ponzi scheme, according to federal authorities. This serves as a reminder to investors to be wary of any investment that seems too good to be true.rnrnThe housing market has been on a roller coaster ride for the past few years. Many are wondering if it has finally hit a bottom.rnrnFinally, Bill Gates has laid a tombstone on Amazon and Google’s AI ambitions. He believes that AI is overhyped and that it will take much longer to achieve the goals that many tech companies have set for it.