OFFICE OF PUBLIC AFFAIRS -1500 PENNSYLVANIA ~iiiik, N.W. -WASHINGTON, D.C. -20220 -(204) 622-2960 

FOR IMMEDIATE RELEASE 

February 1, 1995 

REMARKS BY DARCY BRADBURY 

DEPUTY ASSISTANT SECRETARY (FEDERAL FINANCE) 

TREASURY QUARTERLY REFUNDING PRESS CONFERENCE 

Today, we are announcing the terms of the regular Treasury 

February midquarter refunding. I will also discuss Treasury 

financing requirements for the balance of the current calendar 

quarter and our estimated cash needs for the April-June 1995 

quarter. 

1. We are offering $40.0 billion of notes and bonds to 

refund $30.5 billion of privately held notes and bonds maturing 

on February 15 and to raise approximately $9.5 billion of cash. 

The three securities are: 

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

maturing on February 15, 1998. This note is scheduled 

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

time on Tuesday, February 7, 1995. The minimum 

purchase amount will be $5,000 and purchases above 

$5,000 may be made in multiples of $1,000. 
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-- Second, a 10-year note in the amount of $12.0 billion, 

maturing on February 15, 2005. This note is scheduled 

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

time on Wednesday, February 8. The minimum purchase 

amount will be $1,000. 

-- Third, a 30-year bond in the amount of $11.0 billion, 

maturing on February 15, 2025. This bond is scheduled 

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

Thursday, February 9. The minimum purchase amount will 

be $1,000. 

2. We are also announcing that we plan to sell a 64-day 

cash management bill, which will be issued on February 15 and 

mature on April 20, 1995. This bill is scheduled to be auctioned 

at 11:30 a.m. on Thursday, February 9. We will announce the, 

amount to be sold at about 10:OO a.m. Eastern time on Tuesday, 

February 7. Noncompetitive tenders will be accepted up to 

$1 million and, in order to be timely, must be submitted by 

11:OO a.m. Eastern time. The minimum purchase amount will be 

$10,000 and purchases above $10,000 may be in multiples of 

$1,000. 

3. On October 12, 1994, the Treasury announced that on 

February 15 it will call the 7 718% bond of 1995-00. This bond, 

of which approximately $2 billion is privately held, will be 
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repaid from available funds. We estimate that the Treasury is 

saving about $35 million by exercising the call. 

4. As announced on Monday, January 30, 1995, we estimate a 

net market borrowing need of $93.7 billion for the January-March 

1995 quarter. The estimate assumes a $20 billion cash balance at 

the end of March. Including this refunding, we have raised $31.7 

billion of cash from the sale of marketable securities. This was 

accomplished as follows: 

raised $4.9 billion from the 2-year notes that settled 

January 3 and 31; 

raised $14.6 billion from the 5-year notes that settled 

January 3 and 31; 

raised $2.0 billion from the 52-week bills; 

raised $8.0 billion new cash in the regular weekly 

bills, including those announced yesterday, January 31; 

paid down $7.3 billion in the 7-year note that 

matured January 15; and 

raised $9.5 billion of cash from the notes and bonds 

announced for the refunding today. 

The Treasury will need to raise $62.0 billion in market 

borrowing during the rest of the January-March quarter. The 

financing remaining to be done before the end of March can be 

accomplished through regular sales of 13-, 26-, and 52-week 

bills and 2-year and 5-year notes in February and March. Another 
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cash management bill may be necessary to cover the cash low-point 

in early March. 

6. We estimate that the Treasury will paydown $5 to $10 

billion in marketable securities in the April-June quarter 

assuming a $35 billion cash balance on June 30. 

7. Although the Treasury decided to issue a bond maturing 

in February 2025 in the refunding announced today, we do expect 

to periodically issue bonds with May or November maturity dates 

as we did in August of 1994. This strategy will help to balance 

interest payments between the February-August and the MayNovember payment dates and is expected to facilitate stripping of 

long-term Treasury securities. 

8. Beginning with the two-year note auctions scheduled for 

February 22, 1995, com~etitive bids in Treasury note and bond 

auctions must show the yield bid, expressed with three decimals, 

for example, 7.123 percent. Three-decimal bidding will apply to 

all Treasury note and bond auctions. 

Competitive bidding in Treasury bill auctions will remain 

unchanged. That is, the bid must show the discount rate bid, 

expressed with two decimal places. There is no change to 

noncompetitive bid procedures. The restriction against using 

fractions still applies to bids for all securities. 
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The purpose of three-decimal yield competitive bidding for 

notes and bonds is to increase participation in Treasury auctions 

and to conform the auctions to market practice for when-issued 

trading. 

9. We will accept noncompetitive tenders up to $5 million 

for each of the notes and bonds being offered. 

10. The lo-year note and 30-year bond 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. 

11. I also want to mention that the Treasury is seeking 

comments on proposed rules to implement large position reporting. 

The Treasury authority to require reporting of large positions in 

certain Treasury securities was enacted as part of the 1993 

amendments to the Government Securities Act. Our request for 

comments was published in the FederaLReaister for January 24, 

1995, and we want to encourage all interested parties to comment 

by April 24, 1995. 

12. The May midquarter refunding press conference will be 

held Wednesday, May 3, 1995.