U.S. Treasury Lowers Q3 Financing Expectations by Over $100 Billion to $740 Billion, Cash Balance to Decrease by Year-End

The U.S. Treasury also forecasts Q4 financing borrowing expectations at $565 billion, and cash holdings are expected to decrease from $850 billion at the end of Q3 to $700 billion by year-end. Some analysts suggest that a smaller cash buffer will require a reduction in Treasury bond issuance.