( 

TALKING POINTS 


FOR THE 


FINANCING PRESS CONFERENCE 


October 30, 1991 


Today, we are announcing the terms of Treasury's regular 


November midquarter refunding. I will also discuss the Treasury's 


financing requirements for the balance of the current calendar 


quarter and our estimated cash needs for the January-March 1992 


quarter. 


1. We are offering $38.0 billion of notes and bonds to 


refund $20.2 billion of privately-held notes maturing on 


November 15 and to raise approximately $17.8 billion of cash. 


The three securities are: 


--	 First, a 3-year note in the amount of $14.0 billion, 

maturing on November 15, 1994. This note is scheduled 

to be auctioned on a yield basis on Tuesday, November 5. 

The minimum denomination will be $5,000. Purchases may 

be made in any higher multiples of $5,000. 

-- Second, a 10-year note in the amount of $12.0 billion, 

maturing on November 15, 2001. This note is scheduled 

to be auctioned on a yield basis on Wednesday, 

November 6. The minimum denomination will be $1,000. 

-- Third, a 30-year bond in the amount of $12.0 billion, 

maturing November 15, 2021. This bond is scheduled to 

be auctioned on a yield basis on Thursday, November 7. 

The minimum denomination will be $1000. 
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2. We will accept noncompetitive tenders up to $5,000,000 

for each of the note and bond auctions. This represents an 

increase in the maximum noncompetitive award from the $1,000,000 

level that has been in place for notes and bonds since November 

1976. The $1,000,000 noncompetitive award in Treasury bill 

auctions is unchanged. 

3. As announced on October 28, 1991, we estimate a net 


market borrowing need of $75.8 billion for the October-December 


quarter including an allowance for Resolution Trust Corporation 


operations. The estimate assumes a $30 billion cash balance at 


the end December. We may want to have a higher balance, 


depending upon our assessment of cash needs at the time. 


Including this refunding we will have raised $58.0 


billion of the $75.8 billion in net market borrowing needed this 


October-December quarter. This net borrowing was accomplished as 


follows: 

$4.5 billion of cash from the 7-year note that settled 

October 15; 

$3.5 billion of cash from the 2-year notes which 

settled October 31; 

$9.1 billion of cash from the 5-year notes which 

settled October 31; 

$20.2 billion of cash from the sale of the regular 
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weekly bills, including the bills announced yesterday; 

$2.9 billion of cash in 52-week bills; 

$17.8 billion of cash from the refunding issues 

announced today. 

The $17.8 billion to be raised in the rest of the 

October-December 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. 


4. We estimate Treasury net market borrowing needs to be 

in the range of $95 to $100 billion for the January-March 1992 

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

Treasury's January-March borrowing estimate includes an allowance 

for Resolution Trust Corporation operations. 

5. 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. 


6. The February midquarter refunding announcement will be 


on February 5, 1992.