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Capitol Report

U.S. Treasury sharply raises borrowing estimate for second quarter

An exterior view of the building of U.S. Treasury Department (Photo by Olivier Douliery/AFP via Getty Images)

The Treasury Department on Monday sharply raised how much it expects to borrow in the second quarter.

The department said it expects to borrow $463 in the April-June quarter, which is $368 billion higher than previously estimated. The increase was driven by the government’s additional response to the COVID-19 pandemic, the department said.

The updated forecast includes an end-of-quarter cash balance of $800 billion.

Looking ahead to the third quarter, Treasury said it expects to borrow $821 billion in net marketable debt with a cash balance of $750 billion.

Treasury borrowed $401 billion in net marketable debt in the first quarter and ended with a cash balance of $1.12 trillion. This was slightly higher than the Treasury’s prior $274 billion estimate, which included a cash balance of $800 billion.

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

Treasury said that it is assuming a cash balance of $450 billion at the expiration of the debt limit suspension on July 31.

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