The U.S. Treasury Department announced that it lowered its financing estimate for the first quarter of this year to $274 billion, excluding President Biden‘s proposed $1.9 trillion stimulus basket; analysts expect borrowing of $685 billion, compared to the Treasury’s previous estimate of $1.127 trillion.
The Treasury Department maintained its cash balance forecast of $800 billion at the end of March, saying that the cash balance was higher at the beginning of January due to lower-than-expected spending.
The Treasury expects to borrow $95 billion through net bond issuance in the second quarter, assuming an ending cash balance of $500 billion, but those projections could change if a new spending bill is approved.
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