WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $305
billion of net marketable debt in the fourth quarter of 2011, assuming a
$60 billion cash balance on December 31, the Treasury announced Monday
afternoon.
The borrowing estimate is larger than the prior estimate of $285
billion borrowing, which assumed a cash balance of $100 billion at the
end of December.
“The increase in borrowing relates to lower receipts, higher
outlays, and changes in the cash balance assumptions partially offset by
higher net issuances of State and Local Government Series securities,”
Treasury said.
For the first quarter of 2012, Treasury estimated it would borrow
$541 billion, assuming a $60 billion cash balance on March 31.
In the third quarter of this year, Treasury’s actual borrowing was
$286 billion, while the end-of-quarter cash balance was $58 billion.
Previously, the department had announced it would borrow a net $331
billion in the third quarter with a $110 billion cash balance on
September 30.
“The decrease in borrowing was related to lower receipts offset by
lower outlays and cash balance adjustments that lowered the estimated
end-of-quarter cash balance,” Treasury said.
Details of the quarterly refunding are scheduled to be released on
Wednesday, November 3 at 9:00 a.m. ET.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MFU$$$,MGU$$$,MP$FI$]
