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January 28, 2008
HP-775
Treasury Announces Market Financing Estimates
Washington- Treasury announced its current estimates of net marketable financing today for the January – March 2008 and April – June 2008 quarters:
- Over the January – March 2008 quarter, the Treasury expects to borrow $156 billion of net marketable debt, assuming an end-of-March cash balance of $25 billion. The current estimate is $23 billion higher than announced in October 2007. The increase in borrowing is primarily the result of lower receipts and lower net issuances of State and Local Government Series securities.
- Over the April – June 2008 quarter, the Treasury expects to pay down $122 billion of net marketable debt, assuming an end-of-June cash balance of $45 billion. This projection has not been adjusted for the estimated impact of the stimulus package currently under consideration.
During the October – December 2007 quarter, Treasury borrowed $87 billion of net marketable debt, finishing with a cash balance of $57 billion at the end of December. In October 2007, Treasury announced net marketable borrowing of $68 billion, assuming an end-of-December cash balance of $45 billion. The increase in borrowing was primarily the result of lower receipts and adjustments in cash balances.
Since 1997, the average absolute forecast error in net borrowing of marketable debt for the current quarter is $12 billion and the average absolute forecast error for the end-of-quarter cash balance is $9 billion. Similarly, the average absolute forecast error for the following quarter is $32 billion and the average absolute forecast error for the end-of-quarter cash balance is $11 billion.
Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 a.m. on Wednesday, January 30.
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REPORTS