03:12 PM EDT, 07/29/2024 (MT Newswires) -- The US Treasury said Monday that it expects to borrow $740 billion in Q3, a lower borrowing estimate than the $847 billion it announced in its previous statement on April 29.

The reason for the decrease in the borrowing estimate was lower redemptions from the Federal Reserve and a higher start-of-the-quarter cash balance. The Treasury still assumes a $850 billion end-of-quarter balance, unchanged from the estimate on April 29.

Borrowing is seen at $565 billion in Q4, with an estimated cash balance of $700 billion at the end of December.

The Treasury borrowed $234 billion in the Q2, ending June with a $778 billion cash balance. The Treasury had previously expected to borrow $243 billion with an end-of-June cash balance of $750 billion.

The lower amount of Q2 borrowing was due to higher net cash flows and lower Fed redemptions partially offset by a higher end-of-quarter cash balance, the Treasury said.