The U.S. Treasury Department said it plans to borrow more this quarter than previously estimated, as tax cuts and spending hikes inflate the nation’s budget deficit. The new projections put total net borrowing at $769 billion for the second half of 2018 and $1.33 trillion for the whole year.
The department expects to issue $329 billion in net marketable debt from July through September, the fourth-largest total for that quarter on record and higher than the $273 billion estimated in April, according to a statement released Monday in Washington. The Treasury sees an end-of-September cash balance of $350 billion, matching its previous estimate.
From October through December, the Treasury predicted issuance of $440 billion in net marketable debt, with a $390 billion cash balance at the end of the period.
The yield on U.S. 10-year rates edged higher to almost 2.98 percent following the release of the borrowing outlook, but remained within its daily trading range. The two-year rate was steady around 2.67 percent, close to its low for the day.