Borrowing to be stable in Q4
By Christopher S. Rugaber |
November 4, 2010, Thursday
|
Print Edition
Print Edition
The United States Treasury Department yesterday said it will keep its borrowing steady over the next quarter due to uncertainty over the future of the economy and tax policy.
The department had been scaling back its borrowing as tax receipts have risen and projected budget deficits declined.
Treasury officials said they may reduce borrowing again in 2011 but will keep borrowing level in the fourth quarter.
The deficit reached US$1.3 trillion in 2010, down from a record-setting US$1.42 trillion in budget year 2009.
The department said earlier this week that it will borrow US$362 billion in the current quarter. That's down from an estimate of US$380 billion in August.
The Treasury's decision to maintain the size of its debt auctions is unrelated to the Federal Reserve's potential decision to purchase Treasury securities in an effort to lower long-term interest rates, a Treasury official said. The Fed hopes that lowering those rates will spur more borrowing and spending.
Treasury also said it will offer more inflation-indexed securities, known as TIPS, to meet demand.
Treasury plans to hold a TIPS auction every month and will also hold extra auctions of five-year and 30-year TIPS.
The department also said it will auction US$72 billion in long-term debt next week.
The department had been scaling back its borrowing as tax receipts have risen and projected budget deficits declined.
Treasury officials said they may reduce borrowing again in 2011 but will keep borrowing level in the fourth quarter.
The deficit reached US$1.3 trillion in 2010, down from a record-setting US$1.42 trillion in budget year 2009.
The department said earlier this week that it will borrow US$362 billion in the current quarter. That's down from an estimate of US$380 billion in August.
The Treasury's decision to maintain the size of its debt auctions is unrelated to the Federal Reserve's potential decision to purchase Treasury securities in an effort to lower long-term interest rates, a Treasury official said. The Fed hopes that lowering those rates will spur more borrowing and spending.
Treasury also said it will offer more inflation-indexed securities, known as TIPS, to meet demand.
Treasury plans to hold a TIPS auction every month and will also hold extra auctions of five-year and 30-year TIPS.
The department also said it will auction US$72 billion in long-term debt next week.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
