TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

November 3, 1992 

Today, we are announcing the terms of the regular Treasury 

November midquarter refunding. I will also discuss Treasury 

financing requirements for the balance of the current calendar 

quarter and our estimated cash needs for the January-March 1993~"-- 

quarter. 

1. We are offering $37.0 billion of notes and bonds to 

refund $23.1 billion of privately held notes maturing on November 

15 and to raise approximately $13.9 billion of cash. 

The three securities are: 

-- First, a 3-year note in the amount of $15.5 billion, 

maturing on November . . 15, 1995. This note is scheduled 

to be auctioned on a yield basis on Monday, November 9, 

1992. The deadline for competitive tenders will be 

12:OO p.m., Eastern Time. The deadline for competitive 

tenders in the bill auction to be held the same day 

will be the usual 1:00 p.m., Eastern Time. 

The minimum purchase amount in the 3-year note auction 

will be $5,000. Purchases may be made in any multiples 

of $5,000. 

-- Second, a 9-3/4-year note in the amount of $11.25 

billion, a reopening of the 6-3/8 percent note of 

August 15, 2002. This note is scheduled to be 

auctioned on a yield basis on Tuesday, November 10, 
1992. The minimum purchase amount will be $1,000. 

-- Third, a 30-year bond in the amount of $10.25 billion 

maturing on November 15, 2022. This bond is scheduled 

to be auctioned on a yield basis on Thursday, November 

12, 1992. The minimum purchase amount will be $1,000. 

The 52-week bill auction that usually would be held on 

November 12 will be postponed to Tuesday, November 17 

for settlement on Thursday, November 19. 

2. We will accept noncompetitive tenders up to $5,000,000 

for each of the note and bond auctions. 

3. As announced on Friday, October 30, 1992, we estimate a 

net market borrowing need of $87 billion for the October-December 

quarter. The estimate assumes a $30 billion cash balance at the 

end of December. 

Including this refunding, we will have raised $25.3 billion 

of the $87.0 billion in net market borrowing needed this quarter. 

This net borrowing was accomplished as follows: 

-- $4.1 billion of cash from the 7-year note that settled 

October 15; 

-- $2.9 billion of cash from the 2-year note that settled 

November 2; 

-- $11.1 billion of cash from the 5-year note that settled 

November 2 ; 

-- $1.2 billion of cash in the 52-week bills; 

-- paydowns totaling $7.9 billion in the sales of the regular 
3 

weekly bills, including the bills announced today; and 

-- $13.9 billion of cash from the refunding issues announced 

today. 

The $15 billion cash management bills that will be auctioned 

on November 5 and issued on November 6 will mature on December 17 

and therefore do not affect the borrowing need for the quarter as 

a whole. 

The $61.7 billion to be raised in the rest of the OctoberDecember quarter could be accomplished through sales of regular 

13-, 26-, and 52-week bills, and 2-year and 5-year notes at the 

end of November and December. Cash management bills may be 

necessary in December to cover the low point in the cash balance. 

4. We estimate ~reasur~ net market borrowing needs to be 

in the range of $65 to $70 billion for the January-March 1993 

quarter, assuming a $20 billion cash balance on March 31. The 

borrowing estimate for the January-March 1993 quarter assumes 

that Congress will not enact additional funding for thrift. 

resolutions before early next year, which will prevent 

significant Resolution Trust Corporation spending during the 

period ending in March. 

5. The Treasury decided to reopen the 6-3/8 percent 

Treasury note maturing on August 15, 2002 in order to alleviate 

an acute, protracted shortage of this security. If next week's 

auction of this note results in a price or prices below par, the 
discount will be treated for Federal income tax purposes as 

market discount and not as original issue discount. This Federal 

income tax treatment is provided under Internal Revenue Service 

Notice No. 92-13, released on March 25, 1992. 

6. The 10-year notes and 30-year bonds being announced 

today are eligible for conversion to STRIPS (Separate Trading of 

Registered Interest and Principal of Securities) and, 

accordingly, may be divided into separate interest and principal 

components. 

7. The February midquarter refunding press conference will 

be held on Wednesday, February 3, 1993.