Here is a hitch to the Treasury Department’s proposal to immediately sell $123 billion in T-bills

If the US is unable to address the debt ceiling situation by June 5, the Treasury Department’s T-bill sale is expected to be delayed.

Treasury now intends to auction off $65 billion in 3-month notes and $58 billion in 6-month bills on Monday, with settlement taking place on June 8.

However, if Congress doesn’t pass the debt ceiling bill by then, the Treasury won’t be able to sell the assets since the existing debt ceiling prevents it from doing so.

The number of 3 and 6-month bills that will be offered the next Monday is typically announced by the Treasury Department on Thursdays. Last week, it was said that the sale was “tentative” and “conditional on the passing of the debt limit exemption.”

That’s because Treasury Secretary Janet Yellen believes June 5 to be the most recent X-date or the day that the US is going to run short of money if Congress doesn’t raise the nation’s borrowing ceiling.