US Tsy Sees $142B Borrowing In 2Q; Prev Estimate Was $299B

–Lower 2Q Borrowing Estimate On Higher Receipts, Lower Outlays

WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $142
billion of net marketable debt in the second quarter of 2011, assuming a
$95 billion cash balance on June 30, the Treasury announced Monday
afternoon.

The cash balance includes $5 billion for the Supplementary
Financing Program (SFP).

The borrowing estimate is $156 billion smaller than the prior
estimate of $299 billion borrowing, which assumed a cash balance of $95
billion at the end of June.

“The decrease in borrowing largely relates to higher receipts and
lower outlays,” Treasury said.

For the third quarter of 2011, Treasury estimated it would borrow
$405 billion, assuming a $115 billion cash balance on September 30. The
cash balance includes $5 billion for the SFP.

In the first quarter of this year, Treasury’s actual borrowing was
$265 billion, while the end-of-quarter cash balance was $118 billion,
including $5 billion for the SFP.

Previously, the department had announced it would borrow a net $237
billion in the first quarter with a $65 billion cash balance on March
31.

“The higher cash balance resulted primarily from higher receipts
and lower outlays,” Treasury said.

Details of the quarterly refunding are scheduled to be released on
Wednesday, May 4 at 9:00 a.m. ET.

** Market News International Washington Bureau: 202-371-2121 **

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