MNI BRIEF: US Boosts Q3 Borrowing $453B To $1.007T; Q4 $590B

The U.S. Treasury on Monday increased its estimate for federal borrowing for the current quarter by USD453 billion, while reiterating its previous assumption for an USD850 billion cash balance at the end of September. 

The Treasury Department said in a statement Monday that it now estimates USD1.007 trillion in net borrowing in the months from July to September, up significantly from the USD554 billion penciled in back in April and towards the top-end of the range of market expectations. The increased borrowing needs is due to the lower beginning-of-quarter cash balance and projected lower net cash flows. The Q3 estimate is USD3 billion lower than the largest borrowing amount that was done in the Q3 2023 quarter, in which the Treasury Department borrowed USD1.01 trillion.

From October to December, the U.S. expects to borrow USD590 billion. In the second quarter, Treasury borrowed USD65 billion and ended the quarter with a cash balance of USD457 billion. (See: MNI INTERVIEW: Fiscal Dominance To Fan US Inflation-Leeper)