The U.S. Treasury said Monday it expects to borrow $740 billion in the third quarter, below the April estimate of US$106 billion, due primarily to lower repayments on the Federal Reserve System Open Market Account, Soma, and a higher cash balance at the beginning of the period.
Financing estimate for the third quarter represents a cash balance of US$850 billion at the end of September, the Treasury reported in a statement. The Treasury also announced that it expects to borrow $565 billion in debt in the fourth quarter, assuming a cash balance of US$700 billion at the end of December.
In the second quarter of 2024, the Treasury said it issued $234 billion in net marketable debt and ended that period with a cash balance of US$778 billion.
Treasury yields extended their daily losses following the newswith the 10-year yield falling 2.8 basis points to 4.172%.
