Debt-Ceiling Saga Puts the Treasury’s Financing Estimates Under Scrutiny
- Market will take estimates ‘with a grain of salt,’ Cabana says
- End-December cash balance was $253 billion below forecast
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The US Treasury’s quarterly financing estimates due next week will be closely watched to gauge the department’s view on how the debt-ceiling drama will unfold.
The Treasury on Monday will release estimates for federal borrowing and cash balances through March and the key April-June period as it includes the tax collection deadline and the estimated end of measures used to remain under the debt ceiling. Treasury Secretary Janet Yellen last week informed Congressional leadership that Treasury has deployed a series of special measures to prolong its borrowing authority under the cap.