US Treasury Adjusts Borrowing Estimates Upward

The United States Treasury has revealed plans to borrow a staggering $1.007 trillion in privately-held net marketable debt from July through September 2025. This figure represents a significant $453 billion increase from the department's April estimate, signaling a notable shift in fiscal strategy.

Factors Behind the Adjustment

According to the Treasury, the revision is primarily due to starting the quarter with a lower cash balance and anticipating lower net cash flows. The department aims to conclude September with a cash balance of $850 billion, a target that underscores the government's cautious approach to liquidity management.

Looking Ahead to Q4 2025

For the following quarter, from October to December 2025, the Treasury expects to borrow $590 billion, maintaining the same year-end cash balance goal of $850 billion. This plan reflects the Treasury's ongoing efforts to navigate the complexities of the current economic landscape.