U.S. Treasury Expects Borrowing Needs to Remain Elevated Amid Coronavirus Spending Surge
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
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
Write to Kate Davidson at email@example.com
(END) Dow Jones Newswires
August 05, 2020 08:49 ET (12:49 GMT)
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