US Treasury Decreases Third-Quarter Borrowing Estimate

Reuters
By Reuters
August 2, 2021USshare
US Treasury Decreases Third-Quarter Borrowing Estimate
The U.S. Treasury Building as seen from the Bank of America offices where Politico is holding the inaugural "Lessons from Leaders" program in Washington, D.C., on Sept. 29, 2014. (Chip Somodevilla/Getty Images)

The U.S. Treasury said on Monday it plans to borrow $673 billion in the third quarter, less than the May estimate of $821 billion, due to having a higher balance at the beginning of the quarter and lower outlays.

The third-quarter estimate assumes an end-Sept. cash balance of $750 billion, the Treasury said in a statement.

The Treasury has been cutting issuance since February, when it slashed its borrowing projections for the first and second quarters as part of a plan to reduce its cash balance.

The Treasury said it issued $319 billion in net debt in the second quarter, ending the three-month period with a cash balance of $852 billion.

It expects to borrow $703 billion in the Oct. to Dec. quarter, assuming an end-of-December cash balance of $800 billion.

By Karen Brettell

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