US Treasury to borrow $1.007 trln in Q3

July 31 (Reuters) - The U.S. Treasury said on Monday it expects to borrow $1.007 trillion in the third quarter, higher than the May estimate by $274 billion, due to a lower cash balance at the beginning of the quarter, a higher end-of-quarter cash balance and expectations of lower receipts and higher outlays for the period.

The third-quarter financing estimate assumes an end-September cash balance of $650 billion, the Treasury said in a statement.

If the Treasury borrows the amount it expects, it will be the largest net debt issuance during a third quarter period. It remains well below the almost $3 trillion the Treasury borrowed in the second quarter of 2020, however, when the government ramped up spending due to COVID business closures.

The Treasury also announced it expects to borrow $852 billion in debt in the fourth quarter, assuming a cash balance of $750 billion at the end of December.

In the second quarter of 2023, the Treasury said it issued $657 billion in net marketable debt and ended that quarter with a cash balance of $402 billion. (Reporting By Karen Brettell Editing by Chris Reese)