The U.S. Treasury plans to borrow $1.665 trillion over the next six months, the department announced on Feb. 3 in its first estimate under Secretary Scott Bessent.
According to the Treasury Refunding Estimate, the Treasury projects borrowing $815 billion from January to March. This is $9 billion lower than the October forecast, driven by a higher beginning-of-quarter cash balance.
In the April to June period, the Treasury anticipates borrowing $123 billion.
The Treasury confirmed that it borrowed $620 billion during the October to December quarter, $74 billion higher than initially estimated. Additionally, it finished the three-month span with a cash balance of $722 billion.
With the Treasury’s new chief, market watchers have been waiting to see if officials will change policy, such as shifting from short-term debt sales to long-term maturities and maintaining a smaller cash stockpile. This adjustment could inject volatility into the bond market….