News

Treasury Department to Borrow $750 Billion in Q4

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4.5

Andrew R. Michaud

• October 30, 2023

The Treasury Department has announced that it plans to borrow $750 billion in the fourth quarter of this year. This is $76 billion lower than the previous estimate provided in July. The decrease in borrowing needs can be attributed to higher receipts, according to the department.

Cash Balance and First Quarter Outlook

The updated forecast includes a projected end-of-quarter cash balance of $750 billion. Looking ahead to the first quarter of next year, the Treasury expects to borrow $816 billion, with a cash balance at the end of March also estimated at $750 billion.

Concerns Over Deficit and Economic Outlook

Economists have expressed concern over the government's relatively large deficit, particularly at a time when the unemployment rate is nearing a decades-low level. Normally, during such times, the government would tighten its belt. However, there are worries about how much additional government spending might need to be added to the deficit if the economy falters, which many economists are predicting for next year.

Previous Borrowing Figures and Future Financing Details

In the third quarter, the Treasury borrowed a total of $1.01 trillion and ended with a cash balance of $657 billion. Additional financing details related to the Treasury's quarterly refunding will be released at 8:30 a.m. on Wednesday.

The Treasury will also announce details of a package of 3-year notes, 10-year notes, and 30-year bonds. It should be noted that longer-term yields have experienced a significant increase of more than a full percentage point compared to April.