US Treasury lifts Q2 borrowing estimate to $189 billion
Updated
Updated · The Economic Times · May 5
US Treasury lifts Q2 borrowing estimate to $189 billion
7 articles · Updated · The Economic Times · May 5
It assumes a $900 billion end-June cash balance and projects $671 billion in July-September borrowing, with cash rising to $950 billion by end-September.
For January-March, Treasury borrowed $577 billion in privately held net marketable debt and ended with $893 billion cash; adjusted for the higher starting balance, Q2 borrowing is $122 billion above earlier expectations.
Investors are watching the coming refunding announcement, with note and bond auction sizes expected to stay unchanged and any coupon issuance increase likely delayed as Treasury manages borrowing costs and market absorption.
As borrowing soars, is the Federal Reserve being forced to finance government debt instead of fighting inflation?
With national debt now larger than the entire U.S. economy, is a financial 'heart attack' inevitable?
Can AI-driven productivity gains rescue the U.S. from its spiraling debt before a crisis hits?