The US Treasury said it expects to borrow $740 billion in Q3, which is much lower than the $847 billion estimate from April.
That's due to a higher cash balance at the beginning of the quarter and lower redemptions in the Fed's SOMA market. It assumes a cash balance at the end of this quarter of $565 billion.
The Treasury also announced it expected to borrow $565 billion.
US 10-year yields have fallen 1.2 bps since the announcement to 4.168%.
