The Treasury Department on Monday said it expects to borrow $444 billion in
privately-held net marketable debt during the July-September 2022 quarter, assuming an end-of-September cash balance of $650 billion. The borrowing estimate is $262 billion higher than announced in May 2022, primarily due to changes to projections of fiscal activity and the estimated impact of
Federal Reserve System Open Market Account, or SOMA, redemptions of $120 billion, the department said. During the October-December 2022 quarter, Treasury said it expects to borrow $400 billion in privately-held net marketable debt, assuming an end-of-December cash balance of $700 billion, including the impact of an estimated $139 billion in SOMA redemptions. Treasury said that it borrowed $7 billion in privately-held net
marketable debt in the April-June period and ended the quarter with a cash balance of $782 billion. In May 2022, Treasury estimated a paydown of $26 billion and assumed an end-of-June cash balance of $800 billion. The $33 billion difference in privately-held net market borrowing resulted primarily from the $30 billion in net SOMA redemptions, the department said. Additional financing details around the Treasury’s quarterly refunding will be released at 8:30 a.m. ET on Wednesday.
a.m. on Wednesday, August 3, 2022.
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