Investing.com -- The U.S. Treasury lowered its estimate for federal borrowing for the current quarter as it looks to continue replenishing its coffers.

The Treasury Department lowered its net borrowing estimate for the October through December quarter to $776 trillion, down from the $852 billion amount it had forecast in late July. 

Ahead of the announcement some had been expecting the Treasury to revised down borrowing projections. 

“For Q4, we expect that borrowing projections will be revised down to $745B from $850B in the first cut,” Jefferies said in a note.

For the January to March 2024 quarter, Treasury expects to borrow $816 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $750 billion.

Treasury yields were little changed following the news.  

The Treasury on Wednesday will release the Treasury’s Quarterly Refunding statement, which includes a breakdown of how it intends to issue the debt.

The Treasury's funding plans have taken on added importance in recent months as some have attributed increased Treasury supply as one of the reasons for the jump in Treasury yields to multi-month highs.  

The U.S. Treasury has stepped up the pace of U.S. government bonds issuance after depleting its reserves to fund government operations - following the debt ceiling debacle earlier this year.