US Treasury Raises Third Quarter Borrowing Forecast to $739 Billion

The United States Department of the Treasury announced Monday that it expects to borrow $739 billion in the third quarter. This figure represents an increase of $68 billion over the projection issued in May, a shift the department attributes to lower projected cash flows that were only partially offset by a higher-than-expected starting cash balance.

For the second quarter ending in June, the Treasury borrowed $190 billion, resulting in a cash balance of $919 billion. The department now projects a cash balance of $950 billion by the end of September. Looking further ahead, the Treasury anticipates borrowing an additional $628 billion in the fourth quarter to maintain a year-end balance of $850 billion.

The department will release specific details regarding refunding plans and auction sizes this Wednesday. These announcements come as bond markets experience volatility driven by inflation concerns and the intensified conflict between Israel and Iran.