Capitol Report: U.S. Treasury sharply raises borrowing estimate for second quarter

18237500 - businessman hand pointing to investment as concept

The Treasury Department on Monday sharply raised how much it expects to borrow in the second quarter.

The department said it expects to borrow $463 in the April-June quarter, which is $368 billion higher than previously estimated. The increase was driven by the government’s additional response to the COVID-19 pandemic, the department said.

The updated forecast includes an end-of-quarter cash balance of $800 billion.

Looking ahead to the third quarter, Treasury said it expects to borrow $821 billion in net marketable debt with a cash balance of $750 billion.

Treasury borrowed $401 billion in net marketable debt in the first quarter and ended with a cash balance of $1.12 trillion. This was slightly higher than the Treasury’s prior $274 billion estimate, which included a cash balance of $800 billion.

Additional financing details related to the Treasury’s quarterly refunding will be released at 8:30 a.m. Eastern on Wednesday.

Treasury said that it is assuming a cash balance of $450 billion at the expiration of the debt limit suspension on July 31.

The Moneyist: My employer paid me in crypto. It rose 700% in value. Now he wants employees to return the crypto and accept dollars

Previous article

Bond Report: 10-year Treasury yield sees biggest drop in two weeks as manufacturing rebound slows

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News