By Kate Davidson 

WASHINGTON -- The Treasury Department said Wednesday it expects the government's borrowing needs to moderate somewhat this quarter but remain elevated amid an unprecedented surge in federal spending to combat the coronavirus pandemic.

The Treasury plans to increase auction sizes across all securities, particularly 7- and 10-year notes and 20- and 30-year bonds, as part of a broader effort to shift government financing to longer-dated maturities.

Treasury officials also said they are taking a precautionary approach to government outflows, and expect to maintain a higher cash balance for the foreseeable future until the uncertainty around government outflows diminishes.The Treasury on Monday estimated the cash balance would fall to $800 billion by the end of the current quarter.

"The extent of the decline will depend on several uncertain factors, including the pace of outflows under current law and the potential for additional legislation," Brain Smith, Treasury's assistant secretary for federal finance, said in a statement Wednesday.

Write to Kate Davidson at kate.davidson@wsj.com

(END) Dow Jones Newswires

August 05, 2020 08:49 ET (12:49 GMT)