U.S. expects to borrow $329 billion in third quarter, largest borrowing in that period in eight years
The U.S. Treasury expects to borrow $329 billion in the July-September quarter, $56 billion more than previously estimated, according to a statement Monday. The new forecast includes an end-of-quarter cash balance of $350 billion. This is the largest borrowing in the third quarter since 2010 and is well above the $189 billion borrowed one year ago. Details of the borrowing will be released Wednesday. One of the reasons for the increased borrowing is that the Fed is not replacing as many securities on its balance sheet once they mature, allowing some to “roll off” under its new policy of quantitative tightening. Analysts at Jefferies estimated the government will end up borrowing over one trillion dollars this fiscal year, which ends Oct. 1. During the April-June quarter, Treasury borrowed $72 billion in net marketable debt and ended with a cash balance of $333 billion. This was slightly lower than the $75 billion estimated. During the October-December quarter, Treasury said it expects to borrow $440 billion in net marketable debt with a cash balance of $390 billion.
Read on Market Watch