US STOCKS: Midday Equities Roundup: Off Early Highs, Nasdaq Outperforming

• EUR/USD: Jul10 $1.1650(E2.3bln), $1.1685-00(E1.3bln), $1.1800(E1.3bln); Jul11 $1.1700(E1.1bln), $1.1770(E2.2bln); Jul14 $1.1600-15(E2.1bln)
• USD/JPY: Jul10 Y143.95-15($1.0bln), Y144.70-90($1.3bln)

Treasury has made its first indication of its cash management plans since last week's $5T increase in the debt limit paved the way for a rebuild in the Treasury General Account: "Treasury plans to increase issuance of Treasury bills to continue financing the government and to gradually rebuild the cash balance over time to a level more consistent with Treasury's cash balance policy." 

• Treasury also said that it would aim for a cash balance of $500B by end-July, "before approaching levels consistent with Treasury's cash balance policy in September." And not surprisingly, "Treasury will provide further updates about its issuance plans as part of the August refunding announcements."
• That guidance points to a rebuild to $850B by end-September, which was in the last quarterly Refunding financing requirement document. Treasury's last daily report showed $372.2B in cash as of July 3 so if that target is adhered to, that's over $470B in net cash to raise in just under 3 months.
• As largely expected, to rebuild cash Treasury will rely on benchmark bills and "specifically, the 4-, 6-, and 8-week bills", as opposed to cash management bills (which are no longer anticipated to be issued).
• On Wednesday it will sell $65B in 17-week bills, but is upping the ante with $80B in 4-week bills and and $70B in 8-week bills this Thursday, each of which represents a $25B increase on the prior auction. Those will raise a net $15B on July 15 (alongside $31.4B in net coupons).
• As we noted Monday, the TGA rebuild will weigh on what is now an "abundant" level of reserves currently north of $3.2T, with peak downside pressure on reserves likely to come in mid-September alongside the next key tax date.

French President Emmanuel Macron is delivering an address to the British Houses of Parliament as part of his state visit that got underway earlier today. Livestream here. The visit is viewed as an effort to repair Anglo-French ties following the Brexit process. Ahead of the visit, Macron posted on X: "Together, we will address the major challenges of our time: security, defence, nuclear energy, space, innovation, artificial intelligence, migration, and culture. These are all areas in which we seek to act together and deepen our cooperation in a concrete, effective, and lasting way. This is also a significant moment for our Europe. The willingness expressed by the United Kingdom to strengthen ties with the European Union is a powerful signal — one that I welcome."

• UK PM Sir Keir Starmer there is significant pressure for a deal to be struck with Macron that sees a major reduction in illegal immigration into the UK via small boats across the English Channel. The issue of immigration, and small boats in particular, is a major driver of disaffection with the gov't and a driver for support for the right-wing populist Reform UK, which holds a comfortable lead in nationwide opinion polling at present.
• Macron and Starmer will also discuss further support for Ukraine as the joint leaders of the 'coalition of the willing' countries that have offered possible peacekeeping forces for Ukraine in the event of an eventual ceasefire.