Treasury Q1 quarterly refunding estimate $760 vs $816 billion prior

<ul><li>Last year, the Treasury estimated Q1 borrowing needs at $816 billion, now expects to borrow $760 billion</li><li>Expects to borrow $202 billion in the April-June quarter, assuming end-June cash balance of $750 billion</li><li>Says it borrowed $776 billion in Q4 — in line with estimates — and </li><li>Ended with cash balance of $769 billion, which was $19 billion higher than estimated due to discount on borrowing</li></ul><p>US 10-year yields were trading down 6.7 bps to 4.09% ahead of the announcement and 4.066% afterwards. This is much less than expected and very good for bonds and stocks. It should weigh on the US dollar at the margins.</p><p>The Treasury said that it sees increased net fiscal flows and a higher cash balance.</p>

This article was written by Adam Button at www.forexlive.com.