US Treasury April-June Quarter Borrowing Needs to Reach $361 bln

The U.S. Treasury Dept. announced on Monday it expects to borrow $361 billion of marketable debt in the April-June quarter, up $196 billion from its February estimates. The amount is a record for the quarter – beating the previous $60 billion record borrowing needs for the April-June quarter set in fiscal 2003. The Treasury also said it will need to borrow $515 billion for the subsequent, July-September, quarter.

» From the Treasury Dept.: During the April – June 2009 quarter, Treasury expects to borrow $361 billion of marketable debt, assuming an end-of-June cash balance of $245 billion, which includes $200 billion for the Supplementary Financing Program (SFP).» The borrowing estimate is $196 billion higher than announced in February 2009. The increase in borrowing is primarily related to a continuation of the SFP, and lower receipts and outlays.

» During the July – September quarter, Treasury expects to borrow $515 billion of marketable debt, assuming an end-of-September cash balance of $270 billion, which includes $200 billion for the SFP.

» During the January – March 2009 quarter, Treasury borrowed $481 billion of marketable debt, finishing at the end of March with a cash balance of $269 billion, of which $200 billion was attributable to the SFP. In February, Treasury estimated $493 billion in marketable borrowing, assuming an end-of-March cash balance of $225 billion. The decrease in borrowing was related to lower receipts offset by lower outlays and adjustments in the cash balance.

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