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US Treasury Raises Q3 Borrowing Estimate

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The US Treasury said Monday that it expects to borrow $739 billion in Q3, a larger borrowing estimate than the $671 billion it announced in its previous statement.

The reason for the increase in the borrowing estimate was lower projected net cash flows, which were partially offset by a higher cash balance at the start of the quarter than previously assumed. The Treasury still expects a $950 billion end-of-quarter balance.

Borrowing is seen at $628 billion in Q4, with an estimated cash balance of $850 billion at the end of December.

The Treasury borrowed $190 billion in Q2, ending June with a $919 billion cash balance. The Treasury had previously expected to borrow $189 billion with an end-of-June cash balance of $900 billion.

The slightly higher amount of Q2 borrowing was due to a higher-than-expected end-of-quarter cash balance that was partially offset by higher-than-expected net cash flows, the Treasury said.

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