WASHINGTON (Reuters) - The U.S. Treasury said on Monday it expects to borrow much less in the last three months of the year than previously announced as it approaches a statutory limit on federal debt.
The Treasury Department said in a statement it expects to issue $275 billion through credit markets during the period, assuming an end-December cash balance of $205 billion. It also expects to issue $512 billion in net marketable debt in the first quarter.
Budget experts at the Bipartisan Policy Center expect the Treasury will hit its current borrowing limit in March 2018.
The Treasury’s previous borrowing estimates were made in July. At the time, Washington appeared on track to hit a statutory limit on borrowing within a few months. But Congress voted in September to temporarily suspend a limit on borrowing.
During the July-September quarter, Treasury borrowed $189 billion and ended the period with a cash balance of $159 billion. The Treasury previously estimated borrowing of $96 billion for the quarter.
Additional details of the Treasury’s quarterly refunding will be announced at 0830 EDT (1230 GMT) on Wednesday.
Reporting by Jason Lange