The U.S. Treasury said it now expects to borrow $189 billion in the second quarter, $79 billion higher than previously estimated, citing lower-than-projected net cash flows, while forecasting significantly higher borrowing needs in the third quarter.
- The revised Q2 borrowing estimate is $189 billion, up $79 billion from the February projection.
- The increase is primarily due to weaker net cash flows, partially offset by a higher starting cash balance.
- Treasury assumes an end-of-June cash balance of $900 billion.
- For the third quarter, borrowing is projected at $671 billion with a $950 billion end-of-September cash balance.
- In Q1 2026, Treasury borrowed $577 billion and ended with a $893 billion cash balance.
- Excluding starting cash adjustments, Q2 borrowing is $122 billion higher than prior estimates.
- Data from the Treasury’s reconciliation table shows upward revisions to financing needs and borrowing levels for 2026.
- Additional details on Treasury’s quarterly refunding are expected to be released on May 6.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
