WASHINGTON — The Treasury Monday estimated it will borrow $441 billion of net marketable debt in the first quarter of 2018, assuming a $210 billion cash balance on March 31.
Previously, the Treasury estimated it would borrow $512 billion in the quarter, with a $300 billion cash balance at the end of March.
The lower borrowing estimate was "driven primarily by changes to cash balance assumptions, partially offset by lower net cash flows," the Treasury said.
In the fourth quarter of 2017, Treasury borrowed $282 billion, while the end-of-quarter cash balance was $229 billion. Treasury had previously estimated it would borrow $275 billion in the fourth quarter, assuming a $205 billion cash balance on December 31.
Regarding the fourth quarter, the Treasury said the slightly higher borrowing level was due to "the higher end-of-quarter cash balance, mostly offset by higher issuances of State and Local Government Series securities."
Looking ahead, Treasury said that it expects to borrow $176 billion in the second quarter of 2018, with an end-of-quarter cash balance of $360 billion on June 30.
Details of the quarterly refunding are scheduled to be released on Wednesday, January 31 at 8:30 a.m. ET.
