Treasury Department Reduces Q4 Borrowing Forecast Down To $776B, But Still Raises Eyebrows
Portfolio Pulse from Piero Cingari
The U.S. Treasury Department has lowered its Q4 borrowing estimate to $776 billion, down from the previously predicted $852 billion. This reduction is due to substantial deferred tax receipts from states that received extensions because of natural disasters. Despite the lower borrowing estimate, the bond market didn’t rally as expected on Monday. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) experienced a 0.4% drop in value.
October 30, 2023 | 9:05 pm
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Despite the U.S. Treasury Department lowering its Q4 borrowing estimate, the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) experienced a 0.4% drop in value.
The U.S. Treasury Department's decision to lower its Q4 borrowing estimate was expected to have a positive impact on the bond market. However, the iShares 20+ Year Treasury Bond ETF (TLT) experienced a drop in value, indicating that the market did not react as expected to the news. This could be due to other factors influencing the market, or a lack of confidence in the Treasury's ability to manage its borrowing needs.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100