TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

November 3, 1993 

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 1994 

quarter. 

1. We are offering $29.0 billion of notes and $14.0 

billion of cash management bills to refund $32.2 billion of 

privately held notes and bonds maturing on November 15 and to 

raise approximately $10.8 billion of cash. 

The three securities are: 

-- First, a 3-year note in the amount of $17.0 billion, 

maturing on November 15, 1996. This note is scheduled 

to be auctioned on a yield basis at 1:00 p.m. Eastern 

time on Tuesday, November 9, 1993. The minimum 

purchase amount will be $5,000 and purchases above 

$5,000 may be made in multiples of $1,000. 

-- Second, a 9 3/4-year note in the amount of $12.0 

billion, which is a reopening of the 5 3/4 percent note 

maturing on August 15, 2003. This note is scheduled to 

be auctioned on a yield basis at 1:00 p.m. Eastern time 

on Wednesday, November 10. The minimum purchase amount 

will be $1,000. 
2 

-- Third, a 66-day cash management bill in the amount of 

$14.0 billion, maturing on January 20, 1994. This bill 

is scheduled to be auctioned on a discount rate basis 

at 11:30 a.m. Eastern time on Tuesday, November 9, 

1993. The minimum purchase amount will be $10,000 and 

purchases above $10,000 may be in multiples of $1,000. 

2. As announced on Monday, November 1, 1993, we estimate a 

net market borrowing need of $85.2 billion for the OctoberDecember quarter. The estimate assumes a $35 billion cash 

balance at the end of December. Including this refunding, we 

will have raised a net $47.1 billion of the $85.2 billion in 

market borrowing needed this quarter. This net cash from 

borrowing was accomplished as follows: 

-- $3.3 billion from the 2-year note that settled on 

November 1 ; 

-- $12.3 billion from the 5-year note that settled on 

November 1 ; 

-- $16.1 billion from the regular weekly bills including 

those announced yesterday; 

-- $1.6 billion from the 52-week bill that settled on 

October 21; 

-- $10.0 billion from the cash management bill that 

settles on November 10; 

-- $14.0 billion from the cash management bill that 

settles on November 15; 
3 

-- a paydown of $7.0 billion in the 7-year note that 

matured on October 15; and 

-- paydowns totaling $3.2 billion of the notes and bonds 

that mature on November 15. 

The Treasury will need to raise $38.1 billion in market 

borrowing during the rest of the October-December quarter. This 

financing could be accomplished through regular sales of 13-, 

26-, and 52-week bills and 2-year and 5-year notes. Another 

short-term cash management bill may be necessary to cover a cash 

low-point in early December. 

3. We estimate Treasury net market borrowing needs to be 

in the range of $60 billion to $65 billion for the January-March 

1994 quarter, assuming a $20 billion cash balance on March 31. 

4. We will accept noncompetitive tenders up to 

$5 million for each of the notes and up to $1 million for the 

cash management bill. The 9 3/4-year notes 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. 

5. We are also announcing that, beginning with the 

November midquarter refunding auctions, the Treasury will 
4 

discontinue announcing the results of Treasury auctions on a 

regional or Federal Reserve District basis. 

This change in procedure is being made, because regional 

auction award information has little value in the worldwide U.S. 

Government securities market. It will also eliminate a step in 

processing auction award information for release to the public, 

and it may, therefore, have a slight benefit in shortening the 

time between the deadline for the receipt of tenders and the 

announcement of the auction results. 

6. I want to call your attention to the calendars that are 

included in the chart package that we have distributed. To 

accommodate Thanksgiving, we will auction the November 2-year 

note at 11:30 a.m. Eastern time on Monday, November 22 and the 

5-year note at 1:00 p.m. on Tuesday, November 23. Weekly bills 

will be sold at their usual time, 1:00 p.m. Eastern time, on 

Monday. The December 2- and 5-year notes are scheduled to be 

auctioned on December 21 and 22 for settlement on December 31. 

7. The February midquarter refunding press conference will 

be held on Wednesday, February 2, 1994.