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U.S. Treasury increases second-quarter borrowing estimate due to COVID-19 response

Kitco News

(Reuters) - The U.S. Treasury said on Monday it plans to borrow $463 billion in the second quarter, more than the February estimate of $95 billion, as it increases spending in response to COVID-19.

The second-quarter estimate assumes an end-June cash balance of $800 billion, the Treasury said in a statement.

It comes after the Treasury in February slashed its borrowing projections for the first and second quarters as part of a plan to reduce its cash balance.

The Treasury said it issued $401 billion in net debt in the first quarter, ending the three-month period with a cash balance of $1.122 trillion.

It expects to borrow $821 billion in the July to September quarter, assuming an end-of-September cash balance of $750 billion.

Reporting By Karen Brettell; Editing by Chris Reese

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