US treasury expects to borrow a record $3 trillion in the second quarter

PTI
Washington, District of Columbia, United States of America Published: May 05, 2020, 10:09 AM(IST)

File photo Photograph:( AFP )

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In a statement, Treasury said it would borrow $2.999 trillion during the April-June quarter, $3.055 trillion more than its previous estimate, assuming an end-June cash balance of $800 billion.

The US Treasury Department on Monday said it plans to borrow nearly $3 trillion in the second quarter of 2020 - a record for any quarter - as the federal government contends with the impact of the coronavirus.

In a statement, Treasury said it would borrow $2.999 trillion during the April-June quarter, $3.055 trillion more than its previous estimate, assuming an end-June cash balance of $800 billion.

“It is larger than what we would typically do in a year,” a senior Treasury official said. The Treasury’s net borrowing last fiscal year, for example, was $1.28 trillion.

In February, Treasury said it expected to pay down $56 billion in net marketable debt in the April-June period.

Treasury said it expects to borrow $677 billion during the July-September quarter, assuming an end-September cash balance of $800 billion.

It borrowed $477 billion through credit markets in the January-March quarter, ending the period with $515 billion in cash.

Additional details of Treasury’s quarterly refunding will be announced at 08:30 a.m (1230 GMT) on Wednesday. In February, Treasury said it would announce details of a planned new 20-year bond in May.

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