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Washington- Treasury announced its current estimates of marketable borrowing today for the April – June 2008 and July – September 2008 quarters:
Treasury announced its current estimates of marketable borrowing today for the April – June 2008 and July – September 2008 quarters:- Over the April – June 2008 quarter, the Treasury expects to pay down $35 billion of marketable debt, assuming an end-of-June cash balance of $45 billion. This pay down estimate is $87 billion lower than announced in January 2008. The decrease in the amount of the pay down, and corresponding increase in borrowing, is primarily due to lower receipts, redemptions of portfolio holdings by the Federal Reserve System, and lower net issuances of State and Local Government Series securities.
- Over the July – September 2008 quarter, the Treasury expects to borrow $112 billion of marketable debt, assuming an end-of-September cash balance of $45 billion.
During the January – March 2008 quarter, Treasury borrowed $244 billion of marketable debt, finishing with a cash balance of $46 billion at the end of March. In January 2008, Treasury announced marketable borrowing of $156 billion, assuming an end-of-March cash balance of $25 billion. The increase in borrowing was primarily the result of lower receipts, redemptions of portfolio holdings by the Federal Reserve System and adjustments to cash balances.
In the past, Treasury has announced marketable borrowing as the total net issuance of marketable Treasury securities to all entities, including the Federal Reserve's System Open Market Account (SOMA). The Federal Reserve has redeemed SOMA holdings in excess of $130 billion since August 2007. In order to more accurately reflect borrowing from private market participants, net SOMA redemptions have not been included in Treasury's marketable borrowing estimates above. The table below details the impact of excluding net SOMA redemptions in the estimates for the current quarter and the actual results for the three previous quarters.
| Jul-Sep 07 | Oct-Dec 07 | Jan-Mar 08 | Apr-Jun 08 |
Marketable Borrowing (Including SOMA) | 105 | 87 | 191 | -62 |
SOMA Redemptions | 11 | 39 | 53 | 27 |
Marketable Borrowing (Excluding SOMA) | 116 | 126 | 244 | -35 |
Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 a.m. on Wednesday, April 30.
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REPORTS