US Treasury lifts quarterly borrowing forecast to $947 billion
The US Treasury on Monday said that it expects to borrow $947 billion in debt in the third quarter to fund the massive coronavirus-induced spending surge. The new forecast is $270 billion higher than the previous projection made in May, according to Bloomberg.
The Congressional Budget Office sees the deficit reaching a record $3.7 trillion in the fiscal year ending Sept. 30.
Meanwhile, the Treasury anticipates selling $1.216 trillion in net marketable debt in three months through December.
Treasury’s announcement to raise the borrowing target did not have any notable impact on yields on Monday, The yield on three-month bills was steady near 0.09%, while the 10-year yield hovered around 0.55%.
The benchmark yield is down nearly 140 basis points on a year-to-date basis as increased spending and bond supply has been accompanied by Federal Reserve’s open-ended asset purchases.
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