Treasury cuts Q3 borrowing estimate as slower pace of QT boosts cash balance

Investing.comJul 30, 2024 12:48 AM

View all comments（0）



Investing.com -- The U.S. Treasury on Monday cut its estimate for federal borrowing for the third quarter amid a higher-than-expected cash balance.

The Treasury Department lowered its net borrowing estimate for the July through September quarter to $740 billion, down from the $847 billion amount it had forecast in late April, driven by higher cash balance.

The higher cash balance was driven by a slower pace of bond selling, or quantitative tightening that was announced in June, reducing the Treasury's financing needs by $35B a month.

Ahead of the announcement, Jefferies had expected "a modest downward revision to Q3 borrowing to a total of $750B."

For the October to December quarter, Treasury expects to borrow $565 billion in privately-held net marketable debt, assuming an end-of-December cash balance of $700 billion.

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

$100 Oil and $5,000 Gold: Why the Dollar is Preparing for a Historic Breakout This Week

TradingKey - Global markets are on the edge of their seats as we enter a very important trading week. The US Dollar Index (DXY) is sitting pretty at a ten-month high, and WTI Crude Oil has finally hit that all-important $100 level.

USD Dollar Trend Forecast: Dollar Index Falls Below 97.0 to 4-Year Low, Will the Dollar Continue To Fall or Bottom Out in 2026?

TradingKey - In January 2026, the US Dollar Index continued its downward trend from 2025, officially breaking below the key 97.0 level and reaching a low of 95.5, marking a nearly four-year low since February 2022.

De-dollarization Is Unlikely to Ensure a Long-term Weakening of the U.S. Dollar Index

TradingKey - Our view is as follows: in the short-to-medium term, factors related to de-dollarization will indeed exert periodic constraints on the U.S. dollar exchange rate; however, from a long-term perspective, there remains considerable uncertainty regarding their actual impact on the trend of t

TradingKey Previous Week’s Market Review & Analysis

U.S. equities rallied, led by Dow up 2.3%. Modest job growth, falling unemployment, and strong wage growth supported sentiment. Energy, utilities, industrials, materials, and small-caps (Russell 2000 +4.6%) outperformed. Fed minutes showed differing views on rates. Investors eye CPI data for inflati

The Tether Hegemony: Record Valuations and the Internalization of Crypto’s Infrastructure

Tether (USDT) has not only shattered valuation records but has also embarked on a radical restructuring of its investment portfolio, evolving into a hybrid stablecoin issuer, venture capitalist, and infrastructure operator.

Featured Tools