Jefferies economist Tom Simons.......>

US TSYS/SUPPLY: Jefferies economist Tom Simons said Tsy expected to do

"borrowing of $275 bln in Q4 2017 with an end-of-the-quarter cash balance of

$205 bln. This projection compares with estimated borrowing of $501 bln in the

preliminary release, with a cash balance projection of $360 bln. So, the updated

estimates reflect financing needs that are $71 bln lower." 

- He adds the "primary reason for the big revision in borrowing is that Tsy's

preliminary estimates were made before the Sep.8th deal to suspend the debt

ceiling. In late July, Treasury had anticipated borrowing very little in Q3 and

then ramping up borrowing in Q4. With the short-term debt limit suspension that

Congress delivered ahead of schedule in Sept, this anticipated pattern of

borrowing is going to shift out a quarter, with lean borrowing in Q4 and a ramp

up in borrowing in Q1."