Monday, November 3, 2008

Treasury Expects to Borrow $550 Billion of Debt in Q4

During Q4, the Treasury expects to borrow $550 billion of marketable debt, assuming an end-of-December cash balance of $300 billion, which includes $260 billion for the Supplementary Financing Program (SFP). Without the SFP, the end-of-December cash balance is expected to be $40 billion. This borrowing estimate is $408 billion higher than announced in July 2008.

In Q3,  Treasury borrowed $530 billion of marketable debt, including $300 billion for the SFP, and finished with a cash balance of $372 billion at the end of September. Without the SFP, the end of September cash balance was $72 billion. In July 2008, Treasury estimated $171 billion in marketable borrowing, assuming an end-of-September cash balance of $45 billion.


  1. I do not follow these markets on a trader's level. Is a lot of this debt rolled over? I.e. this doesn't mean that the federal deficit would be two trillion dollars if the trend continues, right? Or heck, maybe it does with the way things are going...

  2. Bob,

    This is all new funding. The refunding annoucemnet is Wed.:
    :"Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 a.m. on Wednesday, November 5."