Treasury Department Lowers Q4 Borrowing Estimate But Deficit Still Soars
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Treasury Department cut its net borrowing estimate for the October-December quarter to $776 billion, down from $852 billion predicted in July. Still a record high.
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Reduction partly due to magnitude of deferred tax receipts from areas granted extensions due to natural disasters.
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Federal deficit roughly doubled in fiscal year through September compared to prior year, reaching $2.02 trillion.
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For January-March quarter, Treasury expects to borrow net $816 billion.
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Treasury's updated debt issuance plans to be released Wednesday, expected to lift coupon-bearing debt sales across yield curve for second straight time.