Corrects total borrowing to $776 billion
The Treasury Department said Monday it expects to borrow $776 billion in the fourth quarter, which is $76 billion lower than the prior estimate made in July.
The decrease in borrowing needs was largely driven by higher receipts, the department said.
The updated forecast includes an end-of-quarter cash balance of $750 billion.
Looking ahead to the first quarter, Treasury said it expects to borrow $816 billion with a cash balance at the end of March of $750 billion.
Economists have been focusing on the government’s relatively large deficit, coming at a time when the unemployment rate is close to a decades-low level. This is a time when the government usually has been able to tighten its belt.
There has been growing concern over how much additional government spending might be added to the deficit if the economy stumbles, which many economists are forecasting for next year.
Read: Treasury borrowing needs could overshadow the Fed decision
Treasury borrowed $1.01 trillion in the third quarter and ended with a cash balance of $657 billion.
Additional financing details related to the Treasury’s quarterly refunding will be released at 8:30 a.m. on Wednesday. The Treasury will announce details of a package of 3-year notes
BX:TMUBMUSD03Y,
10-year notes
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and 30-year bonds
BX:TMUBMUSD30Y.
Longer-term yields have jumped by more than a full percentage point from where they were in April.
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