Investing.com -- The U.S. Treasury increased its estimate for federal borrowing for the current quarter as it looks to beef up its balance sheet, the U.S. Treasury announced Monday.
The Treasury Department raised its net borrowing estimate for the April through June quarter to $243 billion, up from the $202 billion amount it had forecast in late January, driven by lower cash receipts.
For the July to September quarter, Treasury expects to borrow $847 billion in privately-held net marketable debt, assuming an end-of-September cash balance of $850 billion.
Ahead of the refunding update, some on Wall Street had been expecting the Treasury to revised down borrowing projections.
The larger than expected funding requirements for the quarter, pointing to more bond sales than expected, pressured Treasuries and pushed yields up off the lows of the day.
The Treasury on Wednesday will release the Treasury’s Quarterly Refunding statement, which includes a breakdown of how it intends to issue the debt.