In a Monday announcement, the US Treasury Department said it will be looking to borrow $776 billion in the final three months of this year. The announcement comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion.
In addition, the Treasury said it expects to borrow $816 billion between January and March 2024. Stocks lost some of their gains but still remained positive after the announcement. Also, treasury yields were mostly higher. In the previous July-through-September period, the department borrowed $1.01 trillion.
Officials attribute the lower borrowing needs to higher receipts, which were offset by greater expenses. The department said it expects to maintain a $750 billion cash balance for this current quarter and Q2 in 2024.
An economic summary given by the treasury revealed that growth has remained strong while inflation has cooled. However, the statement also indicates that growth is likely to decelerate sharply, falling to 0.7% in the fourth quarter and just 1% for all of 2024.
The US Treasury announcing it will borrow $776 Billion comes 10 days after the government said the fiscal 2023 budget deficit would be about $1.7 trillion, an increase of $320 billion from 2022.