Treasury raises its second-quarter borrowing estimate

By Greg Robb

Lower projected tax receipts for April-June quarter leads to increase in borrowing plans

The Treasury Department said Monday it expects to borrow $243 billion in the second quarter, which is $41 billion higher than previously estimated.

The increase was driven, in part, by lower projected cash receipts for the second quarter. The updated forecast includes an end-of-quarter cash balance of $750 billion.

Looking ahead to the third quarter, Treasury said it expects to borrow $847 billion in net marketable debt with a cash balance of $850 billion.

In the January-March quarter, Treasury borrowed $748 billion and ended with a cash balance of $775 billion. This was lower than the previous borrowing estimate of $760 billion, which included a cash balance of $750 billion.

The decrease in borrowing in the first quarter was $12 billion lower due to higher cash receipts and lower outlays, which were partially offset by the higher cash balance.

The yield on the 10-year Treasury note BX:TMUBMUSD10Y was down 5 basis points on Monday to a yield of 4.618%.

Additional financing details related to the Treasury's quarterly refunding will be released at 8:30 a.m. Eastern on Wednesday.

-Greg Robb

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-29-24 1500ET

Copyright (c) 2024 Dow Jones & Company, Inc.