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Last year, the Treasury estimated Q1 borrowing needs at $816 billion, now expects to borrow $760 billion. US 10-year yields were trading down 6.7 bps to 4.09% ahead of the announcement. This is much less than expected and very good for bonds and stocks. It should weigh on the US dollar at the margins.
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Treasury Announces Marketable Borrowing Estimates
The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing for the January – March 2024 and April – June 2024 quarters. • During the January – March 2024 quarter, Treasury expects to borrow $760 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion. The borrowing estimate is $55 billion lower than announced in October 2023, largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance. • During the April – June 2024 quarter, Treasury expects to borrow $202 billion …
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