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8/4/2020 TREASURY ANNOUNCES MARKETABLE BORROWING ESTIMATES | U.S. Department of the Treasury TREASURY ANNOUNCES MARKETABLE BORROWING ESTIMATES August 3, 2020 Sources and Uses Table WASHINGTON -- The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing[1] for the July - September 2020 and October December 2020 quarters. These estimates assume $1 trillion of additional borrowing need in anticipation of additional legislation being passed in response to the COVID-19 outbreak. During the July - September 2020 quarter, Treasury expects to borrow $947 billion in privately-held net marketable debt, assuming an end-of-September cash balance of $800 billion. The borrowing estimate is $270 billion higher than announced in May 2020. The increase in privately-held net marketable borrowing is primarily driven by higher expenditures, due to a shi from the prior quarter and anticipated new legislation, largely offset by the higher beginning-of-July cash balance[2] and higher receipts. During the October – December 2020 quarter, Treasury expects to borrow $1.216 trillion in privately-held net marketable debt, assuming an end-of-December cash balance of $800 billion. During the April – June 2020 quarter, Treasury borrowed $2.753 trillion in privately-held net marketable debt and ended the quarter with a cash balance of $1.722 trillion. In May 2020, Treasury estimated privately-held net marketable borrowing of $2.999 trillion and assumed an end-of-June cash balance of $800 billion. The $246 billion decrease in borrowing resulted primarily from lower-than-projected expenditures and higher receipts largely offset by the increase in the cash balance. Additional financing details relating to Treasury’s Quarterly Refunding will be released at 8:30 a.m. on Wednesday, August 5, 2020. [1] Privately-held net marketable borrowing excludes rollovers (auction “add-ons”) of Treasury securities held in the Federal Reserve System Open Market Account (SOMA) but includes https://home.treasury.gov/news/press-releases/sm1077 1/2 8/4/2020 TREASURY ANNOUNCES MARKETABLE BORROWING ESTIMATES | U.S. Department of the Treasury financing required due to SOMA redemptions. Secondary market purchases of Treasury securities by SOMA do not directly change net privately-held marketable borrowing but, all else equal, when the securities mature and assuming the Fed does not redeem any maturing securities, would increase the amount of cash raised for a given privately-held auction size by increasing the SOMA “add-on” amount. [2] https://home.treasury.gov/news/press-releases/sm1077 2/2
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