NEW YORK – The Treasury Department said Monday it expects to borrow $305 billion in the fourth quarter, ending the year with a $60 billion cash balance.
The estimate is higher than the $285 billion, with a $100 billion balance, Treasury estimated three months ago, which Treasury said related “to lower receipts, higher outlays, and changes in the cash balance assumptions partially offset by higher net issuances of State and Local Government Series securities."
Treasury predicts it will borrow $541 billion in the first quarter 2012, ending the three months with a $60 billion cash balance.
In the third quarter, Treasury's borrowed $286 billion, ending with a $58 billion cash balance, compared to its estimates of $331 billion borrowed and a $110 billion cash balance. The lesser borrowing resulted from lower receipts offset by lower outlays and cash balance adjustments.
Treasury will detail its quarterly refunding on Wednesday at 9 a.m., Eastern time.
