US Treasury expects to borrow $569 billion in fourth quarter

The U.S. Treasury Department said on Monday it expects to borrow $569 billion in the fourth quarter, $21 billion less than its July estimate.

The decline is mainly due to a higher cash balance at the beginning of the quarter, which is partially offset by lower-than-projected cash flows.

The borrowing estimate would have been $20 billion more than announced in July without the higher-than-expected cash balance, the Treasury said in a statement. The fourth-quarter financing estimate assumes a cash balance of $850 billion at the end of December.


The Treasury also announced it expects to borrow $578 billion in the first quarter of 2026, assuming a cash balance of $850 billion at the end of March.

In the third quarter, the Treasury said it borrowed $1.058 trillion, $50 billion more than it estimated in July, and ended the quarter with a cash balance of $891 billion.

The $50 billion difference was primarily due to the higher end-of-quarter cash balance and lower net cash flows. Excluding the higher-than-assumed end-of-quarter cash balance, the Treasury borrowed $10 billion more than it expected in July, the Treasury said.