US Tsy Sees $276B Borrowing In 3Q; Prev Estimate Was $265B

WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $276
billion of net marketable debt in the third quarter of 2012, assuming
a $60 billion cash balance on September 30, the Treasury announced
Monday afternoon.

The borrowing estimate is higher than the prior estimate of $265
billion, which assumed a cash balance of $95 billion at the end of
September.

“The increase is primarily due to lower receipts, higher outlays,
redemptions of portfolio holdings by the Federal Reserve System and
higher issuances of State and Local Government securities,” Treasury
said.

In the second quarter of 2012, Treasury’s actual borrowing was $172
billion, while the end-of-quarter cash balance was $91 billion.

For the second quarter of 2012, Treasury had estimated it would
borrow $182 billion, assuming a $95 billion cash balance on June 30.

“The decrease in borrowing was driven by higher net issuances of
State and Local Government Series securities partially offset by
higher-than-projected outlays,” Treasury said.

Looking ahead, Treasury said that it expects to borrow $316 billion
in the fourth quarter, with an end-of-quarter cash balance of $40
billion on December 31.

Details of the quarterly refunding are scheduled to be released on
Wednesday, August 1 at 9:00 a.m. ET.

** MNI Washington Bureau: 202-371-2121 **

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