WASHINGTON (Reuters) - The United States said on Monday it will borrow $232 billion (145.15 billion pounds) in net marketable debt between October and December, the smallest level of borrowing for a fourth quarter since 2007 and a reflection of an improving U.S. economy.
The Treasury said it expects to issue $209 billion in net marketable debt during the January-March period.
The Treasury had previously forecast borrowing $169 billion in debt markets in the current quarter, but changed course due to plans to hold a larger cash balance of $200 billion at the end of the year.
The department said it would reduce its cash balance in the first quarter of next year, which is required by legislation passed early last February to suspend a legal limit on U.S. government borrowing.
That legislation requires the Treasury to bring its cash cushion down to about $33 billion in mid-March, and the department said on Monday it would then end that month with about $100 billion in cash.
(Reporting by Jason Lange; Editing by Chizu Nomiyama)