Treasury Says It Will Pay Down $35 Billion in Debt This Quarter

[Tony_FLADEM]

Source: Bloomberg

The U.S. Treasury Department (USGG10YR) projected it will pay down debt this quarter for the first time since 2007 as tax receipts exceed forecasts and spending diminishes.

The pay-down in net marketable debt was estimated at $35 billion in the April-June period, compared with a projection three months ago for net borrowing of $103 billion, the department said in a statement today in Washington. Treasury officials also see net borrowing of $223 billion in the quarter starting July 1. The estimates set the stage for the department’s quarterly refunding announcement on May 1.

Congress has suspended the nation’s $16.4 trillion debt limit through May 18. Lawmakers will be debating proposals to raise the ceiling in the coming months to ward off the possibility of a U.S. default.

“Tax receipts have been stronger than expected and refunds have been lower because of concerns over the fiscal cliff,” Thomas Simons, a government debt economist at Jefferies LLC in New York, said. Simons predicted that “we will see lower borrowing estimates” in the future.



Read more: http://www.bloomberg.com/news/2013-04-29/treasury-says-it-will-pay-down-35-billion-in-debt-this-quarter.html

[galileoreloaded]

1. what a joke

i only had to borrow the car payment this month and not the rent and car payment....again.

[AtheistCrusader]

3. Tax receipts are up, and that is undeniable good news.

Not easy to bounce back out of the hole Bush and a Republican Controlled congress created.

[karynnj]

8. No, this would be like - I have the money this quarter to pay for the car and the rent -- and to

pay back part of the loans given in the past when I could not pay.

I have thought this would happen. Back in November and December, there were many people suggesting that people take the capital gains on appreciated stocks before the end of the year -- to avoid the increases in capital gains in tax year 2013 vs 2012.

April is when taxes are due. Most wage based taxes are paid by withholding through the year. People with a lot of other income are suppose to file estimated taxes, but I would bet that there are many people who had large payments due when they filed. Note that they are still projecting a deficit for third quarter.

The good thing is that this can be used to counter the lie that the deficits are exploding -- when they are contracting. It is also good because it pushes out the debt ceiling mess.

[galileoreloaded]

10. its hard to understand complex macro issues

so I don't get frustrated. tax receipts are, in fact, a joke. you keep paying though.

[freedom fighter jh]

2. Well I guess that means Sequester is a good thing.

If it impacts anything truly important, like keeping flights on schedule, that can be fixed on a case-by-case basis.

Sarcasm.

[karynnj]

9. I bet the bigger impact is that there was concern the capital gains rate was going up

I wish the articles would have included both the spending reductions and the increase in revue over what was expected. Note that they show the third quarter as having a deficit - even though no one is suggesting the sequester ends then.

[Rain Mcloud]

4. $35 B?!

More Tax Cuts for the job creators!
Whoopee!

[Doctor_J]

5. Why not hire a few thousand UE to upgrade the roads

We need roads a lot more than we need to pay $35B off Bush's debt.

[DCBob]

6. Republicans surely wont like this.

[question everything]

7. Good enough reason to welcome these news (nt)