The US Treasury raised its forecast for second-quarter borrowing

The US Treasury on Monday said it expects to borrow $514 billion net in the second quarter, up $391 billion from its February estimate, mainly due to a low cash balance at the start of the quarter and a lower forecast of net cash flow. The second-quarter financing estimate assumes a cash balance of $850 billion at the end of June, the Treasury said in a statement. Excluding the lower-than-expected cash balance at the start of the quarter, the second-quarter borrowing estimate is $53 billion lower than the one announced in February. The Treasury also announced that it expects to borrow $554 billion in the third quarter, assuming a cash balance of $850 billion at the end of September.