WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $288
billion of net marketable debt in the fourth quarter of 2012, assuming a
$60 billion cash balance on December 31, the Treasury announced Monday
afternoon.
The borrowing estimate is 29 billion than the prior estimate of
$316 billion, which assumed a cash balance of $40 billion at the end of
December.
“The decrease in borrowing relates to lower outlays, higher
receipts, and changes in the cash balance assumptions,” Treasury said.
In the third quarter of 2012, Treasury’s actual borrowing was $264
billion, while the end-of-quarter cash balance was $85 billion.
For the third quarter of 2012, Treasury had previously estimated it
would borrow $276 billion, assuming a $60 billion cash balance on
September 30.
“The decrease in borrowing was driven by higher-than-projected
receipts — primarily due to Treasury’s sale of American International
Group common stock — and lower-than-projected outlays, partially offset
by changes in the cash balance assumptions,” Treasury said.
Looking ahead, Treasury said that it expects to borrow $342 billion
in the first quarter of next year, with an end-of-quarter cash balance
of $30 billion on March 31, 2013.
Details of the quarterly refunding are scheduled to be released on
Wednesday, October 31 at 9:00 a.m. ET.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MFU$$$,MGU$$$,MP$FI$]
