The U.S. Treasury Department raised its estimate of federal borrowing for the current quarter to 2.Freeonlinebingonodepositrequired, 43 billion U.S. dollars, higher than most traders expected, the move largely reflectsFreeonlinebingonodepositrequiredCash receipts were lower than officials had expected.

The US Treasury said in a statement on Monday that it had raised its net borrowing estimate for the period from April to June by $41 billion from the $202 billion estimate released at the end of January. The U. S. debt management agency's estimate for the Treasury's cash balance at the end of June remained unchanged at $750 billion.

The Treasury said the increase was "mainly due to a decrease in cash income", which was partially offset by an increase in the cash balance at the beginning of the quarter. The news may surprise some budget watchers. Strategists at Soci é t é G é n é rale had expected borrowing to fall to $166 billion, in part because of improved fiscal deficits.

Treasury yields narrowed briefly after the Treasury announcement. As of 03:16, the yield on the 10-year Treasury note was about 4.Freeonlinebingonodepositrequired.62%, which was as low as 4% earlier.Freeonlinebingonodepositrequired.61%.

The increase was "a bit of a surprise," said Zachary Griffiths, a senior fixed income strategist at CreditSights. Still, the Treasury's $41 billion correction is a rounding error compared to the level of debt and deficit we are dealing with. The market reaction suggests that there is still considerable sensitivity around the US fiscal position-although it really won't change anything in the long run. "

The Treasury also said on Monday that it expects net borrowing of $847 billion in the July-September quarter and a cash balance of $850 billion by the end of September.