Treasury Plans Big Jump in Debt Sales

Treasury Plans Big Jump in Debt Sales

Brian Snyder

The U.S. Treasury announced Monday that it plans to borrow more – a lot more – than previously projected in the third quarter. Total borrowing is expected to hit $433 billion in the July-to-September period, about $274 billion more than officials estimated in April, Bloomberg’s Alex reported. Some of the additional funds will go towards increasing Treasury’s cash balance.

The borrowing estimate is based on the assumption that that debt limit will be suspended, Treasury said. The two-year budget deal, which the Senate is expected to pass and send to President Trump this week, includes an agreement to suspend the debt ceiling.

Sales of U.S. Treasury notes and bonds are expected to rise in the coming quarters on the heels of the $324 billion increase in government spending laid out in the budget deal, Bloomberg’s Liz McCormick and Saleha Mohsin reported Monday. “The deficit is rising and the impetus toward higher spending is very strong,” said Stephen Stanley, chief economist at Amherst Pierpont Securities.