Summary
The U.S. Treasury announced on Monday that its financing plan for the second quarter has been revised upward to $189 billion, reflecting a $79 billion increase from the estimate issued in February. The department attributed the larger borrowing requirement primarily to net cash flows that fell short of expectations, although the impact was partially offset by a stronger opening cash balance at the start of the quarter.
Details of the revision
In a statement, the Treasury said the higher estimate for second-quarter borrowing stems mainly from lower than anticipated net cash flows. That shortfall was partially counterbalanced by a higher than expected cash balance carried into the quarter. Based on the revised financing plan, the Treasury projects a cash balance of $900 billion at the end of June.
Looking ahead to the third quarter, the department provided a separate projection: it expects to borrow $671 billion in Q3 and to finish September with an estimated cash balance of $950 billion.
What the Treasury reported
- The Treasury increased its Q2 borrowing estimate to $189 billion - a $79 billion increase from the February projection.
- The department cited lower than expected net cash flows as the primary reason for the revision, partially offset by a larger opening cash balance.
- Projected cash balance at quarter-end (June) is $900 billion.
- For Q3, the Treasury expects $671 billion in borrowing and a projected cash balance of $950 billion at the end of September.
Notes on available information
The Treasury attributed the change to movements in net cash flows and opening cash balances as stated in its announcement. The department's statement provided the revised borrowing figures for Q2 and the forecast for Q3 along with the projected quarter-end cash balances. The statement did not provide further breakdowns or additional detail in the information supplied.