• Last year, the Treasury estimated Q1 borrowing needs at $816 billion, now expects to borrow $760 billion
  • Expects to borrow $202 billion in the April-June quarter, assuming end-June cash balance of $750 billion
  • Says it borrowed $776 billion in Q4 -- in line with estimates -- and
  • Ended with cash balance of $769 billion, which was $19 billion higher than estimated due to discount on borrowing

US 10-year yields were trading down 6.7 bps to 4.09% ahead of the announcement and 4.066% afterwards. This is much less than expected and very good for bonds and stocks. It should weigh on the US dollar at the margins.

The Treasury said that it sees increased net fiscal flows and a higher cash balance.