Treasury Cuts Quarterly Borrowing Estimate to $760 Billion

  • Department releases borrowing estimate for January to March
  • Treasury also predicts $202 billion net borrowing next quarter

The US Treasury Department in Washington, DC.

Photographer: Stefani Reynolds/Bloomberg
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The US Treasury reduced its estimate for federal borrowing for the current quarter, a move unexpected by many dealers, helping stoke rallies in bonds and stocks Monday.

The Treasury Department said that it now estimates $760 billion in net borrowing for January-through-March, down from a previous prediction of $816 billion released in late October. US debt managers kept their estimate for the Treasury’s cash balance for the end of March at $750 billion.