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Treasury announced its current estimates of net marketable financing for the July - September 2006 and October – December 2006 quarters:
- Over the July – September 2006 quarter, the Treasury expects to borrow $30 billion of net marketable debt, assuming an end-of-September cash balance of $35 billion. The current estimate is $59 billion lower than announced in May 2006. Cash outlays are expected to exceed cash receipts by $23 billion this quarter, resulting in a financing need which is $55 billion lower than our previous estimate and is the primary contributor to the decrease in borrowing of net marketable debt this quarter.
- Over the October – December 2006 quarter, the Treasury expects to borrow $104 billion of net marketable debt to meet a projected financing need of $106 billion, assuming an end-of-December cash balance of $25 billion.
During the April – June 2006 quarter, Treasury paid down $92 billion of net marketable debt, ending with a cash balance of $46 billion on June 30. In May 2006, Treasury announced an estimated pay down in net marketable borrowing of $51 billion, assuming an end-of-June cash balance of $25 billion. Cash receipts exceeded cash outlays by $137 billion, contributing to a financing need that was $61 billion less than previously assumed. The pay down in net marketable borrowing over the quarter was $41 billion larger than previously estimated.
Since 1997, the average absolute forecast error in net borrowing of marketable debt for the current quarter is $10 billion and the average absolute forecast error for the end-of-quarter cash balance is $9 billion. Similarly, the average absolute forecast error for the following quarter is $33 billion and the average absolute forecast error for the end-of-quarter cash balance is $11 billion.
Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 A.M. on Wednesday, August 2.
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REPORTS