NEW YORK – The Treasury Department said it will borrow $362 billion in the fourth quarter of 2010, assuming a $300 billion cash balance on December 31.
The cash balance includes $200 billion for the Supplementary Financing Program (SFP).
Initially, Treasury planned to borrow $380 billion, ending the quarter with a cash balance of $270 billion. The borrowing estimate would make this the second highest borrowing in the fourth quarter, trailing only 2008.
"The decrease in borrowing relates primarily to higher net issuances of State and Local Government Series securities and cash balance adjustments," Treasury said.
Treasury plans to borrow $431 billion in the first quarter of 2011, ending with a $270 billion cash balance on March 31, including $200 billion for the SFP.
In the third quarter, Treasury's borrowed $396 billion, ending with a cash balance of $310 billion, including $200 billion for the SFP. That compared to estimates of $350 billion of borrowing with a $270 billion cash balance.
Details of the quarterly refunding are scheduled to be released on Wednesday at 9:00 a.m. ET.
