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[marketmaven]

U.S. TO BORROW RECORD $171 BILLION IN 1Q: TREASURY

U.S. Treasury sees $96 bln borrowing in Oct-Dec
Mon Oct 31, 2005 03:05 PM ET

WASHINGTON, Oct 31 (Reuters) - The U.S. government expects to borrow a net $96 billion in the October-to-December quarter, in line with expectations, but future borrowing is expected to hit a record high, the Treasury Department said on Monday.

The Treasury Department had said in August it expected to have to borrow $97 billion in the current period.

In its quarterly estimate of market financing needs, the Treasury said it expects to borrow about $171 billion in the January-March 2006 period, the second quarter of fiscal 2006.

Higher borrowing needs are linked to emergency spending for relief and reconstruction after hurricanes battered the Gulf Coast in late summer, Treasury officials said. The January-March quarter traditionally has high borrowing needs because the government is making refunds to taxpayers, the officials added.

Treasury borrowed a less-than-expected $52 billion in net marketable debt in the July-September quarter as government receipts were higher than anticipated.