U.S. Treasury Estimates Less Than Expected for Q2

It is predicted that the U.S. Treasury will borrow at a smaller value than $2 billion compared to the previous estimate for the third quarter but would essentially raise its funds in the final quarter of the year. The credit market is estimated to issue $96 billion from July to September and the assumed value of $60 billion come by the end of September according to the U.S. Treasury department.

For the fourth quarter, a $501 billion net value of marketable debt which is higher than former estimate since the last quarter of 2008. This reflects the dwindling of cash balance and bill supply when the debt limits are adjusted where the majority of the changes come from the presumption of diminishing bond portfolio in September.

The government of the United States has imposed a ruling on how much is the limit for the budget to cover losses as a result of a larger Washington expenditure than the tax collected and only Congress can make this happen.