By Kate Davidson
WASHINGTON -- The Treasury Department said Wednesday it will continue to shift government financing to longer-dated maturities over the coming quarter, but at a more moderate pace than earlier this year, as the government faces uncertain and potentially sizable borrowing needs as a result of the coronavirus.
The Treasury plans to increase auction sizes across all securities, particularly 7- and 10-year notes and 20- and 30-year bonds, though not as much as the previous quarter. The agency also plans to begin modest increases to auction sizes for Treasury inflation-protected securities, which rise by about $10 billion to $20 billion over the 2021 calendar year, the agency said in its quarterly statement of borrowing needs.
Treasury officials also said they would continue to take a precautionary approach to government outflows, and maintain a higher cash balance for the foreseeable future.
"While Treasury expects its cash balance to decline over the upcoming quarter, the extent of the decline will depend on several uncertain factors, including the pace of outflows under current law and the potential for additional legislation," Brian Smith, Treasury's deputy assistant Treasury secretary for federal finance, said in a statement.
The Treasury on Monday halved its estimates for government borrowing through the end of the year as negotiations over another large fiscal stimulus bill remain stalled.
Write to Kate Davidson at kate.davidson@wsj.com
(END) Dow Jones Newswires
11-04-20 0846ET
