U.S. Treasury expects to pay down debt in April-June quarter

WASHINGTON Mon Feb 3, 2014 3:01pm EST

WASHINGTON (Reuters) - The U.S. Treasury said on Monday it expects to pay down $40 billion in net marketable debt in the April-June quarter, a sign that an improving economy is helping close federal budget deficits.

The United States is still far from running regular budget surpluses - most economists expect a deficit of just over a half trillion dollars in the full fiscal year, which began in October.

But if the Treasury is correct in its forecast, it would only be the second quarter in which it paid down debt since 2007. It also paid down debt in the April-June quarter of 2013.

The Treasury said it expects to issue $284 billion in net marketable debt for the January-March period. That is $19 billion more than the department estimated in November.

The Treasury said it had borrowed $264 billion in the October-December quarter by issuing marketable debt securities, below its prior forecast of $266 billion in net borrowing.

(Reporting by Jason Lange; Editing by Andrea Ricci)

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