WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $340
billion of net marketable debt for the second quarter of 2010, assuming
a $280 billion cash balance on June 30, the Treasury announced Monday
afternoon.
The cash balance includes $200 billion for the Supplementary
Financing Program (SFP).
The borrowing estimate is $71 billion higher than the prior
estimate of $268 billion borrowing, which assumed a cash balance of $85
billion at the end of June.
“The increase in borrowing is primarily related to cash balance
adjustments associated with the recent restoration of the SFP to $200
billion,” the Treasury said.
For the third quarter of 2010, Treasury estimated it would borrow
$376 billion, assuming a $270 billion cash balance on September 30.
In the first quarter, Treasury’s actual borrowing was $483 billion,
while the end-of-quarter cash balance was $219 billion, including $125
billion for the SFP.
Previously, the department had announced it would borrow a net $392
billion in the first quarter with a $95 billion cash balance on March
31.
“The increase in borrowing and the higher cash balance were due to
a combination of the increase in the SFP balance, higher receipts, lower
outlays, and higher State and Local Government Series net activity,”
Treasury said.
Details of the quarterly refunding are scheduled to be released on
Wednesday, May 5 at 9:00 a.m. ET.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MFU$$$,MGU$$$,MP$FI$]