TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

November 2, 1994 

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 1995 

quarter. 

1. We are offering $29.0 billion of notes to refund $28.8 

billion of privately held notes and bonds maturing on November 15 

and to raise approximately $0.2 billion of cash. 

The two securities are: 

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

maturing on November 15, 1997. This note is scheduled 

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

time on Tuesday, November 8, 1994. The minimum 

purchase amount will be $5,000 and purchases above 

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

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

maturing on November 15, 2004. This note is scheduled 

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

time on Wednesday, November 9. The minimum purchase 

amount will be $1,000. 
2. We are also announcing a $12 billion 37-day cash 

management bill, which will be issued on November 15 and mature 

on December 22, 1994. This bill is scheduled to be auctioned on 

a discount rate basis at 11:30 a.m. Eastern time on Thursday, 

November 10. 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. As announced on Monday, October 31, 1994, we estimate a 

net market borrowing need of $59.6 billion for the OctoberDecember 1994 quarter. The estimate assumes a $30 billion cash 

balance at the end of December. Including the notes in this 

refunding, we have raised $22.1 billion of cash from the sale of 

marketable securities. This was accomplished as follows: 

-- raised $3.1 billion from the 2-year note that settled 

October 31; 

-- raised $11.7 billion from the 5-year note that settled 

October 31; 

-- raised $1.4 billion from the 52-week bills; 

-- raised $12.8 billion new cash in the regular weekly 

bills, including those announced yesterday, November 1; 

-- paid down $7.1 billion in the 7-year note that 

matured October 15; and 
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-- raised $0.2 billion of cash 

announced for the refunding 

from the securities 

today. 

4. The Treasury will need to raise $37.5 billion in market 

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

have taken into account the fact that both the $12 billion cash 

management bill to be issued on November 15 and the $15 billion 

cash management bill that was issued on October 17 will mature on 

December 22, before the end of the quarter. We have also taken 

into account that the December 2- and 5-year note issues will 

settle on January 3, in the next quarter. The financing I 

remaining to be done before the end of December can be 

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

bills and 2-year and 5-year notes in November. A cash management 

bill may be necessary to cover the cash low-point in early 

December. 

5. We estimate Treasury net market borrowing needs to be 

in the range of $65 to $70 billion for the January-March 1995 

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

6. We are continuing to work towards changing to 3-decimal 

competitive yield bidding for auctions of Treasury notes and 

bonds in the spring of 1995. We believe that 3-decimal bidding 

will tend to encourage participation in Treasury auctions and 
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will conform Treasury auctions to current market practice for 

when-issued trading of Treasury securities. 

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

for each of the notes. 

8. The 10-year note being announced today is 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. The principal STRIPS 

for the 10-year note will have a unique CUSIP number and will not 

be interchangeable with the principal STRIPS from the outstanding 

11-5/8% Treasury bond of November 15, 2004. 

9. The February midquarter refunding press conference will 

be held Wednesday, February 1, 1995.