US Cuts Quarterly Borrowing Target to $776 Billion, Still Record

The US Treasury reduced its estimate for federal borrowing for the current quarter thanks to stronger-than-expected revenues, offering some relief for investors concerned about the rapidly widening fiscal deficit.

The Treasury Department cut its net borrowing estimate for the October-through-December quarter to $776 billion, against the $852 billion for the period predicted in late July. Debt managers kept their estimate for the Treasury’s cash balance for the end of December at $750 billion.

The new borrowing amount is somewhat smaller than many strategists’ forecasts. JPMorgan Chase & Co. had penciled $800 billion, with no change in the cash-balance estimate. ...