FOR IMMEDIATE RELEASE 

October 30, 1996 

REMARKS BY ROGER L. ANDERSON 

DEPUTY ASSISTANT SECRETARY FOR FEDERAL FINANCE 

FALL 1996 TREASURY QUARTERLY REFUNDING 

PRESS CONFERENCE 

Good afternoon. I will begin today's refunding announcement 

with the terms of the regular Treasury November quarterly 

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 1997 quarter. I will then 

discuss certain other financing issues. 

1. We are offering $38.5 billion of notes and bonds to 

refund $36.7 billion of privately held notes maturing on November 

15 and to raise approximately $1.8 billion of cash. 

The three securities are: 

-- First, a 3-year note in the amount of $18.5 billion, 

maturing on November 15, 1999. This note is scheduled to be 

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

November 5. 
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-- Second, a 9-year, 11-month note in the amount of $10.0 

billion, maturing on October 15, 2006. This is a reopening 

of the 6-112 percent 10-year note originally issued October 

15. This note is scheduled to be auctioned on a yield basis 

at 1:00 p.m. Eastern time on Wednesday, November 6. 

-- Third, a 30-year bond in the amount of $10.0 billion, 

maturing on November 15, 2026. This bond is scheduled to be 

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

Thursday, November 7. 

2. We are also offering a 34-day cash management bill to 

mature on December 19 in the amount of $13 billion; this bill is 

to be auctioned on a yield basis on Wednesday, November 13. 

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

market borrowing need of $48 billion for the October-December 

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

end of December. Including the securities in this refunding, we 

have raised $15.6 billion of cash from sales of marketable 

securities. See the attachment for details. 

4. Treasury will need to raise $32.4 billion in market 

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

financing can be accomplished through regular sales of 13-, 26-, 

and 52-week bills in November and December and 2- and 5-year 

notes in November and December. Other cash management bills may 
be needed to cover the low points in the cash balance in early 

December. 

The tentative auction calendars for November, December, 

and January are included in the chart package which was 

distributed today. 

5. We estimate Treasury net market borrowing to be in a 

range of $50 billion to $55 billion for the January-March 

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

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6. On September 25, President Clinton and Secretary Rubin 

announced the terms and conditions of the first Treasury 

inflation-indexed security. It will be a 10-year note to be 

auctioned and issued in January. The security will follow the 

Canadian model in which the principal will be adjusted for 

changes in inflation. The inflation adjustment will be paid at 

maturity. Semi-annual interest payments will be a fixed 

percentage of the adjusted principal. The security will use the 

CPI for all urban consumers as the gauge of inflation. 

Since September 25, we have been engaged in a series of 

informational discussions with investors of all kinds, to assist 

as many people as possible in familiarizing themselves with these 

new notes by the time of the auction in January. 
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7. Treasury is also announcing that we intend to change 

the way Treasury bill auctions will be announced. Beginning 

later this year or early in 1997, announcements of the amounts to 

be sold in T-bill auctions will no longer include amounts 

available for purchase by the Federal Reserve for the System Open 

Market Account to replace maturing bills. The amounts announced 

will be awarded to the public and to foreign official accounts to 

replace maturing bills. Awards to the Federal Reserve for the 

System Open Market Account to replace maturing bills will be 

treated as additions to the anno&ced size of the auctions. 

We are making this change to provide better information 

to the market place on the amount of bills that will actually be 

available for sale to the public. 

8. New regulations designed to make the Treasury State and 

Local Government Series securities (SLGS) more attractive and 

easier to buy went into effect on Monday, October 28. Also 

attached is a copy of last week's announcement describing the 

major changes made to the SLGS program. 

9. The next quarterly refunding press conference is 

scheduled to be held on Wednesday, February 5. 
ATTACHMENT 

CASH RAISED 

Including the securities announced in this refunding, we 

have raised $15.6 billion of cash from sales of marketable 

securities. 

This was accomplished as follows: 

raised $4.4 billion from the 2-year notes to be issued 

October 31; 

raised $3.1 billion from the 5-year notes to be issued 

October 31; 

raised $1.7 billion from the 52-week bills issued 

October 17 ; 

raised $3.0 billion from the sale of the 10-year note 

issued October 15 to refund the 7-year note; 

raised $1.6 billion in cash in the regular weekly 

bills, including those announced yesterday; 

raised $1.8 billion from the notes and bonds announced 

today. 

the cash management bills announced yesterday mature 

within the quarter and do not effect the total net 

market borrowing.