US Tsy Sees $444B Borrowing In 1Q; Prev Estimate Was $541B

WASHINGTON (MNI) – The U.S. Treasury estimated it will borrow $444
billion of net marketable debt in the first quarter of 2012, assuming a
$30 billion cash balance on March 31, the Treasury announced Monday
afternoon.

The borrowing estimate is smaller than the prior estimate of $541
billion borrowing, which assumed a cash balance of $60 billion at the
end of March.

“More than half of the decrease is due to relative changes in the
opening and end-of-quarter balances; the actual end-of-December balance
was $26 billion higher, while the estimated end-of-March balance is $30
billion lower,” Treasury said.

For the second quarter of 2012, Treasury estimated it would borrow
$200 billion, assuming a $90 billion cash balance on June 30.

In the fourth quarter of 2011, Treasury’s actual borrowing was $310
billion, while the end-of-quarter cash balance was $86 billion.

Previously, the department had announced it would borrow a net $305
billion in the fourth quarter with a $60 billion cash balance on
December 31.

“The higher cash balance was driven primarily by
higher-than-projected receipts and lower outlays,” Treasury said.

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

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

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