The U.S. Treasury Department Monday announced it expects to borrow USD444 billion in privately-held net marketable debt in the third quarter, USD262 billion more than previously announced in May.
Treasury is assuming a cash balance of approximately USD650 billion at the end of September. For the fourth quarter, Treasury expects to borrow USD400 billion, assuming an end-of-December cash balance of USD700 billion. The Treasury's quarterly refunding, which is expected to show coupon cuts, will be released at 8:30 a.m. August 3.
The Treasury's third quarter financing estimates were adjusted due to the Federal Reserve's SOMA redemptions. During the second quarter, the U.S. borrowed USD7 billion and ended the quarter with a USD782 billion cash balance.