The U.S. Treasury Raises Second Quarter Borrowing Estimate

According to a report by Jinshi, the U.S. Treasury announced on Monday that it expects to net borrow $514 billion in the second quarter, which is $391 billion more than the February estimate. This increase is mainly due to a lower initial cash balance and lower estimated net cash flow for the quarter. The Treasury stated in a release that the second quarter financing estimate assumes a cash balance of $850 billion by the end of June. Excluding the lower-than-expected cash balance at the beginning of the quarter, the borrowing estimate for the second quarter is $53 billion lower than the figure released in February. The Treasury also stated that it expects to borrow $554 billion in the third quarter, assuming a cash balance of $850 billion by the end of September.