U.S. expects to borrow $30 billion in second quarter
The U.S. Treasury expects to borrow $30 billion in the second quarter, $53 billion lower than previously estimated, according to a statement Monday. The new forecast includes an end-of-quarter cash balance of $270 billion. The department said the decrease in borrowing was driven by "changes to projections of fiscal activity and cash balance assumptions." Looking ahead to the third quarter, Treasury said it expects to borrow $160 billion in net marketable debt with a cash balance of $85 billion. The U.S. is expected to run out of cash to pay bills sometime in the fall without a debt-limit increase, according to estimates from the Congressional Budget Office. During the first quarter, Treasury borrowed $374 billion in net marketable debt and ended with a cash balance of $334 billion. This was slightly higher than the Treasury's estimate of borrowing of $365 billion and a cash balance of $320 billion. Additional financing details related to the Treasury's quarterly refunding will be released at 8:30 a.m. on Wednesday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.