U.S. Cuts Borrowing Estimate With Fed Slowing Balance Sheet Runoff

The U.S. Treasury Department indicated that the government will need to borrow less than previously estimated as the Federal Reserve slows the reduction of its asset portfolio on its balance sheet.

The department expects to issue $30 billion in privately held net marketable debt between April and June, assuming a cash balance of $270 billion at the end of the period. The amount is $53 billion lower than the estimate that it made in January.