TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

January 27, 1982 

Before I disclose the specifics of the February refunding 

package and the projections of cash needs for the next two 

quarters, I would like to mention several other debt management 

matters. 

First, the Treasury submitted legislation to the Congress 

yesterday to repeal the 4-1/4 percent interest rate ceiling 

on Treasury bond issues. Presently, the Treasury may issue 

up to $70 billion of bonds, which have over 10 years to maturity, 

without regard to the 4-1/4 percent ceiling. We have used 

$67-1/2 billion of that authority, and the quarterly financing 

that we are announcing today will use up the remaining $2-1/2 

billion. We are hopeful that the Congress will act promptly 

on this legislation in order to permit the Treasury to continue 

to issue bonds, particularly during this current period of 

heavy financing requirements. 

I would also like to note that the Treasury is continuing 

to study possible changes in its procedures for selling securities. 

As we announced last week, we are considering more efficient 

ways of making securities available to smaller investors, 

possibly through greater use of banks or other private financial 

institutions, but we have not completed our studies and we have 

nothing new to announce on that matter today. 
- 2 - 

Finally, I am happy to announce that Secretary Regan 

sent to the Congress yesterday legislation to remove the 

interest rate ceiling on Savings Bonds. This will enable 

the Treasury to issue the new, market-based variable rate 

Savings Bonds described by Secretary Regan last month. We 

are urging prompt act ion *by the Congress. 

The new bond will strengthen the Savings Bonds Program 

by assuring savings bond holders a fair return regardless of 

movements in market interest rates. A healthy Savings Bonds 

program will contribute to this Administration's objectives 

of encouraging individual savings and will also help to reduce 

the pressure on the market from our heavy borrowing requirements. 

On that note, I would now like to turn to the terms of 

our regular February quarterly refunding. I will also discuss 

the Treasury's financing requirements for the balance of the 

current quarter and our estimated cash needs for the April-June 

quarter. 

1. We are offering $10.0 billion of securities to refund 

$4.3 billion of publicly-held coupon securities maturing 

on February 15 and raise approximately $5.7 billion 

of new cash. 
The three securities are: 

--First, a +year note in the amount of $5.0 billion 

maturing on February 15, 1985. This note will be 

auctioned on a yield basis on Tuesday, February 2. 

The minimum denomination will be $5,000. 

--Second, a 10-year note in the amount of $2.5 billion 

maturing on February 15, 1992. This note will be 

auctioned on a yield basis on Wednesday, February 3. 

The minimum denomination will be $1,000. 

--Third, a 29-3/4-year bond in the amount of $2.5 billion, 

which will be a reopening of the 14 percent bond maturing 

on November 15, 2011 and callable beginning November 15, 

2006. This bond will be auctioned on a price basis 

on Thursday, February 4. The minimum denomination 

will be $1,000. 

On each of the three issues, we will accept noncompetitive tenders 

of up to $1,000,000. 

2. For the current January-March quarter, we estimate a net market 

borrowing of $41-1/4 billion, assuming a $10 billion cash balance 

at the end of March. 

3. Including this refunding, we will have raised $18.8 billion in 

marketable borrowing. This was accomplished as follows: 

--$1.8 billion of new cash from the 20-year, 1-month 

bond which settled January 6. 
--$3.5 billion of new cash from the 7-year note which 

settled January 13. 

--$1.6 billion of new cash from the 2-year note settling 

February 1. 

--$.6 billion of new cash from the 52-week bill settling 

January 28. 

--$5.7 billion of new cash from weekly bills, including 

the bills announced yesterday. 

--$5.7 billion of new cash from the February refunding. 

The remaining net financing requirement of about $22-1/2 billion 

could be accomplished through sales of regular weekly and 

monthly bills, a note in early March in the 5-year maturity 

range, additions to upcoming 2- and 4-year note maturities, 

and cash management bills. 

4. Our net market borrowing need in the second quarter of calendar 

year 1982 is currently estimated in the range of $10 to $15 billion, 

assuming a $15 billion cash balance at the end of June. We may 

wish to have a somewhat higher cash balance than $15 billion on 

June 30, depending upon the course of the economy and market 

conditions in the second quarter and our revised estimates of 

our borrowing needs at that time. 
TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

July 28, 1982 

Before I disclose the specifics of the August refunding 

package and the projections of cash needs for the next two 

quarters, I would like to mention three other debt management 

matters. 

First, the Treasury is pleased to note that the Senate 

approved in the tax bill last week an increase to $110 billion 

in the Treasury's authority to issue long-term bonds. 

Presently, the Treasury nay issue up to $70 billion of bonds, 

which have over 10 years to maturity, without regard to the 

4-1/4 percent ceiling. We exhausted that authority with the 

February refunding, so the quarterly financing that we are announcing 

today will not include a bond issue. We are hopeful that the 

Congress will act promptly to complete action on this legislation 

in order to permit the Treasury to resume issuance of long-term 

bonds, particularly during this period of heavy financing requirements. When this legislation is enacted we expect to return 

to our regular schedule of a 20-year bond issue in the first 

month of each quarter and a 30-year bond issue in the mid-quarter 

refunding. As indicated in the attached chart, we plan to 

announce the terms of a 20-year bond issue on September 14. 

This is part of a new consolidated financing schedule designed 

to increase bidding interest in the quarterly 4-year, 7-year 

and 20-year auctions and to permit a longer period for distribution of the securities. 
Second, the tax bill passed by the Senate last week also 

included a provision requested earlier by Secretary Regan to 

remove the interest rate ceiling on savings bonds. This will 

enable the Treasury to issue the new, market-based variable 

rate savings bonds described by Secretary Regan last December. 

The new bond will strengthen the savings bonds program by 

assuring savings bond holders a fair return regardless of 

movements in market interest rates. h healthy savings bonds 

program will contribute to this Administration's objectives 

of encouraging individual savings and will also help to reduce 

the pressure on the market from our borrowing requirements. 

We are very encouraged by the progress on both of these 

debt management measures, and we are hopeful that this legislation will move quickly through the Congress. 

Finally, we are announcing a change in the procedure for 

determining the size of a Treasury coupon issue when part 

of the issue is taken by foreign official accounts through 

the Federal Reserve. Beginning with the August 31 2-year note, 

the entire amount of tenders accepted from foreign accounts in 

a coupon sale will be added to the amount the Treasury announces 

for sale in the market. If the foreign accounts roll over 

part or all of their holdings in the auction, or if they are 

awarded additional amounts, Treasury will add the entire 

amount of the foreign awards to the announced size of the 

issue. Thus, foreign awards will not change the announced 

amount offered to the public. This change is designed to 
-3- 

reduce market uncertainty regarding the size of the auction 

offered to domestic bidders and thus reduce financing costs to the 

Treasury. 

I would now like to turn to the terms of our regular August 

quarterly refunding. I will also discuss the Treasury's financing 

requirements for the balance of the current quarter and our 

estimated cash needs for the October-December quarter. 

1. We are offering $11.0 billion of securities to refund 

$4.3 billion of publicly-held coupon securities maturing 

on August 15 and raise approximately $6.7 billion of new 

cash. 

The two securities are: 

--First, a 3-year note in the amount of $6.0 billion maturing 

on August 15, 1985. This note will be auctioned on a yield 

basis on Tuesday, August 3. The minimum denomination will 

be $5,000. 

--Second, a 9-3/4 year note in the amount of $5.0 billion 

maturing on May 15, 1992. This will be a reopening of the 

13-3/4 percent note issued in May of this year. This note 

will be auctioned on a price basis on Wednesday, August 4. 

The minimum denomination will be $1,000. 

On each of the two issues, we will accept noncompetitive 

tenders of up to $1,000,000. 
2. For the current July-September quarter, we estimate a net 

market borrowing of $50-1/2 billion, assuming a $20 billion 

cash balance at the end of September. 

3. Including this refunding, we will have raised $25.1 billion 

in marketable borrowing, excluding the $4.5 billion of new 

cash management bills announced Honday which will mature 

September 16. This was accomplished as follows: 

--$4.6 billion of new cash from the 4-year note which settled 

July 6. 

--$4.7 billion of new cash from the 7-year note which 

settled July 8. 

--$1.8 billion of new cash from the 2-year note settling 

August 2. 

--$2.0 billion of new cash from the 52-week bill which 

settled July 15. 

--$5.3 billion of new cash from weekly bills, including 

the bills announced yesterday. 

--$6.7 billion of new cash from the August refunding. 

The remaining net financing requirement of about $25.5 billion 

could be accomplished through sales of regular weekly and 

monthly bills, a note in early September in the 5-year maturity 

range, and additions to upcoming 2- and 4-year note maturities. 

A cash management bill may be required to bridge the low point 

in our cash balance in September. 
4. Our net market borrowing need in the October-December quarter 

is currently estimated in the range of $44 to $49 billion, 

assuming a $15 billion cash balance at the end of December. 

We may wish to have a somewhat higher cash balance than $15 

billion on December 31, depending upon the course of the 

economy and market conditions in the October-December period 

and our revised estimates of our borrowing needs at that time. 

Attachment 
SCHEDULE OF COUPON ISSUES TO BE ANNOUNCED 

AND AUCTIONED IN SEPTEMBER 1982u 

Monday I Tuesday Wednesday Thursday 

Announce +- 2 year 

- .. 

13 

- ... . .. . 

20 

Friday 

10 

.- 

14 

Announce 

4 year 

7 year 

20 yearw . . . . . . .. .. 

2 1 

Auction 

4 Year3 

15 

Auction 

2 yearn 

3 Does not include 5 year issue which will probably be announced in late August 

2 For settlement September 30 

3 Assuming bond authority legislelion is enacted 

9 For settlement in early October 

16 

2 2 

Auction 

7year4J 

23 

Auction 

20year3 

24 
TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

October 27, 1932 

I would now like to turn to the terms of our regular November 

quarterly refunding. I will also discuss the Treasury's financing 

requirements for the balance of the current quarter and our estimated 

cash needs for the January-March quarter. 

1. We are offering $13.0 billion of securities to refund 

$4.5 billion of publicly-held coupon securities maturing 

on Novener 15 and raise approximately $3.4 billion of new 

cash. 

The three securities are: 

--First, a 3-year note in the amount of $6.0 billion maturing 

on November 15, 1965. This note will be auctioned on a yield 

basis on Wednesday, Novenber 3. The ninimun denonination will 

be $5,000. 

--Second, a 10 year note in the amount of $4.0 billion maturing 

on November 15, 1992. This note will be auctioned on a yield 

basis on Thursday, Novenber 4. The minimum denomination 

will be $1,000. 

--Third, a 30-year bond in the amount of $3.0 billion maturing 

on November 15, 2012, and callable on November 15, 2007. This 

bond will be auctioned on a yield basis on Tuesday, November 9. 

The minimum denomination will be $1,000. 

On each of the three issues, we will accept noncompetitive 

tenders of up to $1,000,000. 
2. For the current October-December quarter, we estimate a net 

market borrowing of $46-1/2 billion, assuning a $15 billion 

cash balance at the end of December. 

3. Including this refunding, we will have raised $20.2 billion 

in narketable borrowing. This was accomplished as follows: 

--$3.0 billion of new cash from the 2-year note settling 

Novenber 1. 

--$3.7 billion of new cash from the 52-week bills. 

--$5.1 billion of new cash from weekly bills, including 

the bills announced yesterday. 

--$8.4 billion of new cash fron the Novenber refunding. 

The remaining net financing requirement of about $26.3 billion 

could be accomplished through sales of regular weekly and 

monthly bills, a note in early December in the 5-year maturity 

range, and additions to upcoming 2- and 4-year note maturities. 

A cash management bill may be required to bridge the low point 

in our cash balance in Novenber. 

4. Our net market borrowing need in the January-March quarter 

is currently estimated in the range of $47 to $52 billion, 

assuming a $10 billion cash balance at the end of March. 

j' We may wish to have a somewhat higher cash balance than $10 

billion on March 31, depending upon the course of the 

economy and market conditions in the January-March period 

i, "* d+' 

and r-estimates of iss borrowing needs at that time. 

4