U.S. Treasury Raises Borrowing Estimate to $739 Billion for the Quarter -- Barrons.com

By Karishma Vanjani

The U.S. Treasury Department needs to borrow billions more from investors this quarter than it assumed earlier.

The Treasury said Monday it expects to borrow a net $739 billion during the current July to September quarter, about $68 billion more than estimated in May.

The quarter started with $19 billion more cash in hand than the Treasury had previously assumed. Factoring this extra cash, the Treasury is effectively borrowing $87 billion above the May estimate.

The higher amount is due to lower projected net cash flows, the Treasury said.

The Treasury doesn't break down why cash flow is lower, whether due to tariffs, taxes, or any other reason. But more clarity will come when it releases the monthly treasury statement, typically about eight business days after the end of the month, Treasury officials said.

Details on how the Treasury will divvy up this borrowing -- how much goes to shorter-dated vs. longer-dated bonds -- will be released Wednesday morning.

Traders since the Biden presidency have been watching closely for signs the Treasury issues more longer-dated debt, an action that could push up yields further.

The 30-year Treasury yield was trading at its highest level since 2007 last week.

For the October to December quarter, the Treasury expects to borrow $628 billion.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

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August 03, 2026 16:43 ET (20:43 GMT)