The U.S. Treasury plans to borrow $1.665 trillion over the next six months, the department announced on Feb. 3 in its first estimate under Secretary Scott Bessent.
According to the Treasury Refunding Estimate, the Treasury projects borrowing $815 billion from January to March. This is $9 billion lower than the October forecast, driven by a higher beginning-of-quarter cash balance.
In the April to June period, the Treasury anticipates borrowing $123 billion.
The Treasury confirmed that it borrowed $620 billion during the October to December quarter, $74 billion higher than initially estimated. Additionally, it finished the three-month span with a cash balance of $722 billion.
With the Treasury’s new chief, market watchers have been waiting to see if officials will change policy, such as shifting from short-term debt sales to long-term maturities and maintaining a smaller cash stockpile. This adjustment could inject volatility into the bond market.
Financial markets will receive a detailed look at the department’s plans for bond and note sales over the coming months when it publishes its Treasury Refunding report on Feb. 5.
Bessent has criticized his predecessor, Janet Yellen, for depending too much on short-term Treasury bills to finance the national debt and manage ballooning