Connect with us
Financial Press
economic-report:-treasury-sees-$2-trillion-in-borrowing-over-the-rest-of-the-year
economic-report:-treasury-sees-$2-trillion-in-borrowing-over-the-rest-of-the-year

Breaking

Economic Report: Treasury sees $2 trillion in borrowing over the rest of the year

Economic Report

The U.S. Treasury Department said Monday it expects to borrow $2 trillion over the rest of the year as the federal government’s takes on debt to finance the response to the coronavirus pandemic.

In the third quarter, the Treasury now expects to borrow $947 billion in net marketable debt. That is $270 billion higher than estimated in May. The department assumes a cash balance of $800 billion.

Looking ahead to the fourth quarter, Treasury said it expects to borrow $1.2 trillion in net marketable debt with a cash balance maintained at $800 billion.

In a statement, Treasury said its new borrowing estimates for the third and fourth quarters “assume $1 trillion of additional borrowing need in anticipation of additional legislation being passed in response to the COVID-19 outbreak.”

Talks of another package remained deadlocked on Capitol Hill.

Treasury borrowed $2.75 trillion in net marketable debt in the second quarter and ended with a cash balance of $1.72 trillion.

This was lower than the Treasury’s prior $3 trillion estimate, which included a cash balance of $800 billion.

Analysts say the rush of new issuance is unlikely to dent appetite for government bonds this year, as the Federal Reserve’s bond-buying and pledge to keep policy easy have kept bond yields pinned down near their record lows.

The 10-year Treasury note yield
TMUBMUSD10Y,
0.559%

was up 2.6 basis points to 0.562% on Monday. Bond prices move inversely to yields.

Additional financing details related to the Treasury’s quarterly refunding will be released at 8:30 a.m. Eastern on Wednesday.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Breaking

My wife and I are both 57 and looking to retire at 62.  We will get approximately $1,700 a month each from Social Security. ...

Breaking

The Conversation Published: Sept. 26, 2020 at 5:14 p.m. ET What do communities like “People of Praise” believe? President Donald Trump announces his Supreme...

Breaking

NewsWatch Published: Sept. 26, 2020 at 5:00 p.m. ET MARKETWATCH FRONT PAGE Federal tax relief for new homeowners would help millennials and support prices,...

Breaking

Economic Preview Published: Sept. 26, 2020 at 4:54 p.m. ET Despite improvement, the U.S. unemployment rate remains historically high and financial woes are just...