The US Treasury does not expect to issue cash management bills to rebuild its cash balance.

The US Treasury does not expect to issue cash management bills to rebuild its cash balance.

The U.S. Treasury Department's recent auction of 77-day cash management bills resulted in high interest rates, signaling market conditions and investor sentiment [1]. The auction, held on July 3, 2025, saw the high rate at 4.285%, the median rate at 4.260%, and the low rate at 4.200% [1]. The investment rate stood at 4.385%, indicating strong demand for short-term government securities [1].

The auction saw a total of $60.009 billion in bills accepted, out of a total tendered amount of $173.731 billion [1]. The bid-to-cover ratio was 2.90, indicating a robust level of interest from investors [1]. This high demand for cash management bills underscores the current financial stability and investor confidence in the U.S. government's ability to manage its cash balance effectively.

Meanwhile, in the cryptocurrency market, Tornado Cash's price surged nearly 5% following a U.S. appeals court's decision to dismiss a lawsuit against the Treasury Department [2]. The Eleventh Circuit Court of Appeals ruled to dismiss the case, allowing Tornado Cash to remain off the Office of Foreign Assets Control (OFAC) sanctions list [2]. This decision comes after OFAC removed sanctions against Tornado Cash and a separate court ruling blocked OFAC from enforcing these sanctions [2].

Despite the removal of sanctions, the U.S. government continues to pursue criminal money laundering charges against Tornado Cash developers Roman Storm and Roman Semenov [2]. The developers' trial is slated to begin on June 14 in New York [2].

References:
[1] Reuters. (2025, July 3). U.S. 77-day cash management bills auction results. Retrieved from https://www.tradingview.com/news/reuters.com,2025-07-03:newsml_AQN2KLBHN:0-u-s-77-day-cash-management-bills-high-rate-4-285/
[2] CoinDesk. (2025, July 7). Tornado Cash price surges after U.S. appeals court dismisses lawsuit. Retrieved from https://www.coindesk.com/policy/2025/07/07/torn-spikes-5-after-u-s-appeals-court-okays-end-of-another-tornado-cash-lawsuit