U.S. runs $32.6 billion January budget deficit, Treasury says

Deficit for current fiscal year to date $389 billion, $79 billion more than in the same period last year

The numbers: The federal government ran a budget deficit of $32.6 billion in January, compared with a surplus of $9 billion in the same month one year earlier, the Treasury Department said Wednesday (https://www.fiscal.treasury.gov/ reports-statements/mts/current.html). This is in-line with the $32 billion deficit estimated by the Congressional Budget Office last week.

What happened: Spending for January was $404.9 billion while the government brought in $372.3 billion.

For the fiscal year to date, the deficit totaled $389.2 billion, up from $310.3 billion in same period one year ago.

Big picture:The CBO projects (http://www.marketwatch.com/story/us-national-debt-projected-to-rise-to-314-trillion-by- 2030-cbo-2020-01-28)$1 trillion annual budget deficits each year for the next decade. Fed Chairman Jerome Powell has urged lawmakers to put the deficit on a more sustainable path so that the government can increase spending to combat the next recession.

Market reaction: Despite the outlook for the deficit, the yield on 10-year Treasury note has fallen 32 basis points since the start of the year.

-Greg Robb; 415-439-6400; AskNewswires@dowjones.com

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  02-12-20 1422ET
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