The US Treasury has raised its borrowing estimate for the July–September quarter to $1.01 trillion.
The revision reflects the impact of the recent debt ceiling suspension, which allowed for a $5 trillion increase. In response, the Treasury is accelerating bond issuance to replenish its cash holdings, aiming for an $850 billion balance by the end of September.
For the fourth quarter, borrowing is projected to be lower at $590 billion. Revenue from increased tariffs is providing a lift, though corporate tax receipts are expected to weaken. Details of the Treasury’s upcoming bond sales will be released on Wednesday.
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This article was written by Eamonn Sheridan at investinglive.com.
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