US Treasury QUADRUPLES Borrowing Estimate to $514B!
Debt Ceiling Drama Heats Up
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The US Treasury just shocked markets with a massive borrowing update:
They're now expecting to borrow $514 billion from April to June â way up from the $123B forecast made in February!
Why the spike?
The government kicked off Q2 with just $406B in cash â way lower than the expected $850B.
Thanks to the debt ceiling snapping back in January, they couldnât issue new Treasuries to plug the gap.
Now theyâre betting Congress will finally fix the mess before June.
Still aiming for $850B by the end of June...
But unless lawmakers move fast, thatâs looking more like a dream.
Looking ahead:
Q3 borrowing? Estimated at $554B.
Treasury expected to reveal bond sale plans this Wednesday.
Analysts like Lou Crandall hint Treasury might even shrink its cash buffer if things get worse.
Key takeaway:
With cash management strategies possibly shifting, and borrowing projections soaring, this could trigger volatility across markets â especially for USD-pegged assets and bonds.
Stay sharp, stay informed!
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