Treasury to borrow $776 billion in the final three months of the year
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In a closely watched announcement Monday afternoon, the Treasury Department said it will be looking to borrow $776 billion.
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The Treasury said it expects to borrow $816 billion between January and March.
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The announcement comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion.
The U.S. government’s borrowing needs will decline slightly in the final three months of 2023 from the prior quarter, a potentially important development during a turbulent time for the global bond market.
In a closely watched announcement Monday afternoon, the U.S. Department of the Treasury said it will be looking to borrow $776 billion, which is below the $1.01 trillion in privately held marketable debt the department borrowed in the July-through-September period, the highest ever for that particular quarter. The Treasury said it expects to borrow $816 billion during the January-through-March period, which is the government’s fiscal second quarter. That number appeared above Wall Street estimates, as JPMorgan said it was looking for $698 billion. The record for quarterly borrowing happened in the April-through-June stretch in 2020, when borrowing hit nearly $2.8 trillion during the early Covid-19 pandemic days. Markets will be watching a Wednesday refunding announcement from the Treasury, which will detail the size of auctions, the duration being issued and their timing. Later that day, the Federal Reserve will conclude its two-day policy meeting, with markets overwhelmingly expecting the central bank to hold interest rates steady.
https://www.cnbc.com/2023/10/30/treasury-to-borrow-776-billion-in-the-final-three-months-of-the-year.html