US Treasury Raises Q3 Borrowing Estimate to $1 Trillion

The U.S. Treasury Department has announced plans to borrow approximately $1.007 trillion in the third quarter of 2025, a notable increase from its prior estimate of $554 billion. This increase is primarily due to the need to rebuild cash reserves depleted during the recent debt ceiling standoff, along with lower projected cash flows and a smaller starting cash balance for July. The Treasury aims for an end-of-quarter cash balance of $850 billion. For the fourth quarter, an additional $590 billion in borrowing is planned. Market experts say the rise in borrowing was anticipated under the circumstances. The announcement is not expected to surprise financial markets.