MNI: US Tsy Sees $433B Borrowing In 3Q;Prev Estimate Was $160B

     WASHINGTON (MNI) - The U.S. Treasury Monday estimated it will borrow $433

billion of net marketable debt in the third quarter of 2019, assuming a $350

billion cash balance on September 30.

     Previously, the Treasury estimated it would borrow $160 billion in the

quarter, with a $85 billion cash balance at the end of September.

     The larger borrowing estimate was due to "changed in cash balance

assumptions," the Treasury said.

     In the second quarter of 2019, Treasury borrowed $40 billion, while the

end-of-quarter cash balance was $264 billion. Treasury had previously estimated

it would borrow $30 billion in the second quarter, assuming a $270 billion cash

balance on June 30.

     Regarding the fourth quarter, the Treasury said the higher borrowing level

was due to "lower net cash flows partially offset by the lower end-of-quarter

cash balance."

     Looking ahead, Treasury said that it expects to borrow $381 billion in the

fourth quarter of 2019, with an end-of-quarter cash balance of $410 billion on

December 31.

     Details of the quarterly refunding are scheduled to be released on

Wednesday, July 31 at 8:30 a.m. ET.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

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