US Treasury Estimates It Will Have to Borrow More

The U.S. Treasury Department said on Monday it will sharply increase its estimated borrowing over the next two quarters due to expected lower receipts and higher outlays.

woodleywonderworks Treasury Building

Treasury said it expects to issue $305 billion in net marketable debt for the October-December quarter, an increase of about $21 billion from estimates issued on Aug. 1.

Treasury said it expected to issue $541 billion in net marketable debt securities in the January-March 2012 quarter, marking the second-highest quarter on record.

The highest was the October-December quarter of 2008, when the Treasury Department sold $569 billion in debt to fund bailouts of the financial sector and automakers during the depths of the financial crisis.

CNBC