The normal explanation for this would be that redemptions of Treasury securities are running at precise equilibrium with issues, which might imply there has been a big shift away from note and bond purchases by the public since the end of May when Ben Bernanke first floated the possibility of a tapering of Fed purchases in the secondary market. Bond outflows in June of nearly $62 billion dramatically reversed a trend (albeit declining) of purchases in 2013 through May.
Theoretically total public debt outstanding occasionally goes down in the rare cases when redemptions exceed issuances, but the maintenance of a consistent level equilibrium is indicative of a deliberate policy, that is, a policy not to exceed the debt limit of $16.7 trillion. This is effected by recourse to extraordinary measures on the part of the US Treasury Dept.
Tax revenues are also running higher in 2013, helping remove pressure from the situation as is the sequester which is curbing outlays. Revenue has also increased from the GSEs, in excess of $59 billion according to Reuters, here. The Associated Press has reported here for July 18th that the current fiscal year deficit is projected to come in over $300 billion less than last year when all is said and done.
Now you know why Congress felt it could take the traditional August recess without doing anything about the debt ceiling. They'll just let Jack Lew sweat it out.
Now you know why Congress felt it could take the traditional August recess without doing anything about the debt ceiling. They'll just let Jack Lew sweat it out.
