**U.S. Treasury Revises Borrowing Estimates for Upcoming Quarters**

The U.S. Department of the Treasury has released updated projections for its privately-held net marketable borrowing for the final quarter of 2024 and the first quarter of 2025. The revised figures reveal a modest reduction in the borrowing requirements for the October-December 2024 quarter and a substantial increase for the January-March 2025 quarter.

For the period from October to December 2024, the Treasury now anticipates borrowing $546 billion in privately-held net marketable debt. This figure is adjusted down by $19 billion from earlier forecasts made in July 2024. The reduction is primarily attributed to a higher beginning-of-quarter cash balance, though it is partially offset by lower net cash flows. The forecast assumes the Treasury will close the quarter with a cash balance of $700 billion.

In the following quarter from January to March 2025, the borrowing estimate experiences a significant rise. The Treasury expects to borrow $823 billion in privately-held net marketable debt, ending the quarter with a projected cash balance of $850 billion. These estimates underscore the shifting financial landscape and the Treasury's plan to manage its resources within the constraints of anticipated cash flows and various fiscal policies.

Reflecting back on the preceding period, from July to September 2024, the Treasury reported borrowing $762 billion and wrapped up the quarter with a cash balance of $886 billion. This was an adjustment from the initial projection of $740 billion in borrowing and an assumed end-of-quarter cash balance of $850 billion set in July 2024. The actual borrowing exceeded estimates by $22 billion due to a $36 billion higher ending cash balance, somewhat balanced by increased net cash flows.

Further details regarding the Treasury's financing plans will be disclosed in the forthcoming Quarterly Refunding report, scheduled for release on Wednesday, October 30, 2024, at 8:30 a.m. The report will provide deeper insights into the Treasury's financial strategies and approaches to funding in the near term.