HomeNewsUS Treasury to borrow $350 billion

US Treasury to borrow $350 billion

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The Treasury Department said on Monday it plans to borrow $350 billion in the July-September quarter by issuing new government bonds.That was up modestly from the April-June period, when the Treasury issued $344 billion in “marketable” securities, meaning those that can be resold in financial markets.
During the October-December quarter, Treasury said it expects to issue $380 billion.
The estimates assume an end-of– quarter cash balance of $270 billion, which includes $200 billion allocated for the Supplementary Financing Programme established to help the Federal Reserve manage monetary policy. The report comes amid a tug-of-war in Washington between Democrats, who would like to boost spending in the near-term to support a fragile economic recovery, and Republicans, who have made spending cuts a mid-term election issue.
A Treasury official said US primary dealers on average expect the US budget deficit to hit $1,35 trillion for fiscal 2010, which ends on September 30. — Reuters

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