The U.S. Treasury Department on Monday said it plans to borrow nearly $3 trillion in the second quarter of 2020 – a record for any quarter – as the federal government contends with the impact of the coronavirus.
In a statement, Treasury said it would borrow $2.999 trillion during the April-June quarter, $3.055 trillion more than its previous estimate, assuming an end-June cash balance of $800 billion.
“It is larger than what we would typically do in a year,” a senior Treasury official said. The Treasury’s net borrowing last fiscal year, for example, was $1.28 trillion.
In February, Treasury said it expected to pay down $56 billion in net marketable debt in the April-June period.
Treasury said it expects to borrow $677 billion during the July-September quarter, assuming an end-September cash balance of $800 billion.
It borrowed $477 billion through credit markets in the January-March quarter, ending the period with $515 billion in cash.
Additional details of Treasury’s quarterly refunding will be announced at 08:30 a.m (1230 GMT) on Wednesday. In February, Treasury said it would announce details of a planned new 20-year bond in May.