Estimated Estimated Estimated 514 Billion Dollars of the US Treasury Rectangular Lending, If Debt Ceiling Separation

The Treasury Department announced on Monday that from April to June, $ 514 billion would be borrowed, according to a statement of over $ 123 billion of IT forecasts.

The department accused Spike less cash at starting a quarter, and the direct blow from the congress still does not confirm the debt ceiling.

In February, the Treasury thought that by the end of March, the bank would sit in the bank about $ 850 billion. This did not happen. Instead, the actual number fell to about $ 406 billion.

As the debts limit returned in January, the government was unable to push new treasury in the gap. Even with this deficit, officials stubbornly detain their $ 850 billion money goal by the end of June, and the legislators will eventually contribute to the ceiling.

According to the Treasury, the lack of cash shaved $ 53 billion

The Treasury said that if it had not started a quarterly quarter, the number of second -quarter loans would have been $ 53 billion. “Except for the lower start of the quarter, the current rating of a quarterly borrowing is $ 53 billion lower than in February,” the department said in a Monday statement.

Lou Crandall, Wrightson Icap Senior Economist, warned Before Monday's announcement, the Old February forecasts will not take into account new tariff hikes who pressed President Donald Trump into imports. Lou said that in his note, the flowing tariff money could be better managed by the Treasury. But billions from the beginning of the quarter had already pierced a hole through earlier projections.

Before Monday update, Wall Street traders were not even close to accepting the new borrowing number. Lou said he assumed that the Treasury will raise its forecast, assuming that the $ 850 billion cash balance will be possible by June.

JPMorgan Chase & Co. The strategists were much more cautious, believing that net -value borrowing lands $ 255 billion, with a cash balance falling to $ 300 billion.

The Federal Debt Ceiling returned in early January. This immediately put the Treasury on the leash, blocking it more from the creation of debts. If the congress continues to drag your feet, the department is forced to issue the invoice and bleed its cash supply even faster.

Currently, the treasury's cash balance is about $ 563 billion on the basis of last Thursday's numbers. This is higher than the end of March, but still nowhere near the dreams of $ 850 billion to which officials cling to.

Treasury sketches the loan plans for the next quarter

Looking in June, the Treasury hopes to borrow another $ 5,54 billion in July until September. It is once again assumed that at the end of the third quarter it will have $ 850 billion cash. But like everything else, this number only applies if the Congress finally raises or stops the debts.

The department announced that it would release its plans for the sale of its note and bonds over the next few months this Wednesday. Wall Street dealers think that the Treasury will leave those sales size the same, without large shifts.

Some analysts, including Lou, begin to wonder if the Treasury has to rethink all their approach to cash management. Currently, the department is aimed at a huge cash buffer. But Lou floated the idea that officials could reduce this target as the ceiling fights.

When journalists asked the Treasury official how they would report a change in cash balance strategy, the official allegedly said they would probably do so through a quarterly refund application – as in 2015 during a similar situation.

Speaking during the speech, the official made it clear that the decision had not yet been made, but if they were going to change the course, the world will hear about it.

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