The cash reserves of the U.S. Treasury are facing uncertainties, and strategists from institutions like Bank of America say it may impact the bond market

Changes in the leadership of the U.S. Treasury Department may alter the department's approach to cash held at the Federal Reserve, strategists warn, a move that could impact the U.S. bond market. Institutions such as Bank of America and Wrightson ICAP LLC indicate that as cash balances—funds that ensure the U.S. can pay its bills—decrease, the Treasury may reduce the funds held in Federal Reserve accounts. Against the backdrop of the debt ceiling being restored and cash balances shrinking, this would allow the government to issue fewer short-term bonds, potentially saving taxpayer money