The U.S. government will borrow more than $1 trillion over the next three months, the Treasury Department projects.
According to the latest marketable borrowing estimates, released on July 28, the Treasury expects to borrow $1.007 trillion during the July-to-September quarter.
This is nearly double the previous estimate of $554 billion in April, “primarily due to the lower beginning-of-quarter cash balance and projected lower net cash flows,” the Treasury said in a statement announcing the estimates.
During the October-to-December period, the Treasury anticipates that it will borrow $590 billion, assuming a cash balance of $850 billion at the end of December.
New data confirmed that the Treasury borrowed $65 billion during the April-to-June quarter and finished the quarter with a cash balance of $457 billion.
In recent months, officials have drawn on the Treasury General Account—the federal government’s primary checking account held at the Federal Reserve Bank of New York—amid the debt ceiling debate.
At the start of fiscal year 2025, the cash balance stood at more than $885 billion. Earlier this month, it declined to below $290 billion.
Now that the One Big Beautiful Bill Act has raised the debt ceiling by $5 trillion, the Treasury is looking to replenish its account.
As of July 24, the balance stands at more than $333 billion.
Further details regarding the Treasury’s quarterly refunding will be published on July 30.
These numbers elicited a muted reaction in the U.S. bond market.
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