US Treasury seeks to borrow $3 trillion in 3 months

The US Department of the Treasury said on Monday it expects to borrow a record $3 trillion in the second quarter of 2020 alone to help pay for the federal response to the coronavirus pandemic.

In 2019, the US Treasury borrowed $1.28 trillion over 12 months.

Asked if there was capacity in the market to absorb such a huge volume of debt in just three months, a senior Treasury official told Reuters: “We do believe that it’s out there.”

Since the beginning of March, US national debt has grown by about $1.5 trillion to just under $25 trillion.

“During the April – June 2020 quarter, Treasury expects to borrow $2,999 billion in privately-held net marketable debt, assuming an end-of-June cash balance of $800 billion,” said the Treasury.

“The borrowing estimate is $3,055 billion higher than announced in February 2020. 

“The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April – June until July, and an increase in the assumed end-of-June Treasury cash balance.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.