US Treasury raises its 3rd quarter borrowing forecast to $1T

ISTANBUL

The US Treasury Department announced Monday that it had raised its borrowing forecast for the third quarter of this year to $1 trillion.

A Treasury statement said the cash balance at the end of September is projected to be $850 billion, and that the borrowing forecast is $453 billion higher than the forecast announced in April.

The $453 billion difference is primarily due to the lower beginning-of-quarter cash balance and projected lower net cash flows.

"Excluding the lower than assumed beginning-of-quarter cash balance, the current quarter borrowing estimate is $60 billion higher than announced in April," it said.

The statement said $590 billion in borrowing is expected in the last quarter of this year, with a cash balance of $850 billion at the end of December.

The Treasury also noted that it borrowed $65 billion this April to June, with a cash balance of $457 billion at the end of that quarter.

In its April forecast, the Department announced that the Treasury was expected to borrow $514 billion in the second quarter of the year, with a cash balance of $850 billion at the end of June.