U.S. Treasury plans to borrow over $1 trillion in third quarter

Published 28/07/2025, 20:26
U.S. Treasury plans to borrow over $1 trillion in third quarter

Investing.com -- The U.S. Department of the Treasury announced Monday it expects to borrow $1.007 trillion in privately-held net marketable debt during the July-September 2025 quarter, assuming an end-of-September cash balance of $850 billion.

This borrowing estimate is $453 billion higher than what was announced in April 2025. The Treasury attributed this increase primarily to a lower beginning-of-quarter cash balance and projected lower net cash flows. Excluding the lower than assumed beginning-of-quarter cash balance, the current quarter borrowing estimate is $60 billion higher than previously announced.

For the following quarter (October-December 2025), the Treasury expects to borrow $590 billion in privately-held net marketable debt, maintaining the same end-of-quarter cash balance target of $850 billion.

The Treasury also reported that during the April-June 2025 quarter, it borrowed $65 billion in privately-held net marketable debt and ended the quarter with a cash balance of $457 billion. This was significantly lower than the April 2025 estimate of $514 billion, which had assumed an end-of-June cash balance of $850 billion.

The $449 billion difference between estimated and actual borrowing in the second quarter resulted primarily from the lower end-of-quarter cash balance and higher net cash flows. When excluding the lower than assumed end-of-quarter cash balance, actual borrowing was $56 billion lower than announced in April.

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