NEW YORK (Reuters) – The U.S. Treasury said on Monday it expects to borrow $760 billion in the first quarter, $55 billion lower than the October estimate primarily due to forecasts for increased net fiscal flows and higher cash balance.
The first-quarter financing estimate assumes a cash balance of $750 billion at the end of March, the Treasury said in a statement.
The Treasury also announced it expects to borrow $202 billion in the second quarter, as it projects a cash balance of $750 billion at the end of June.
It also said in the fourth quarter of 2023, the Treasury borrowed $776 billion in net marketable debt, in line with estimates released in October last year. It ended the fourth quarter with a cash balance of $769 billion.
The Treasury explained that the end-December cash balance was $19 billion higher than the October forecast due to other sources of financing such as the lower-than-estimated discount on marketable borrowing.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)
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