OFFICE OF PUBLIC AFFAIRS 1500 PENNSYLVANIA AVENUE, N.W. WASHINGTON, D.C. • 20220 • 

(202) 622-2960 

FOR IMMEDIATE 

RELEASE 

May 1, 1996 

REMARKS BY DARCY BRADBURY 

ASSISTANT SECRETARY FOR FINANCIAL MARKETS 

TREASURY QUARTERLY REFUNDING PRESS 

CONFERENCE 

Good afternoon. I will begin with today's refunding announcement and 

then I will discuss modifications in the Treasury's longer range borrowing plans. 

l. We are offering $46.0 billion of notes and cash management bills 

to refund $35.0 billion of privately held notes maturing on May 15 and to raise 

approximately $11.0 billion of cash. 

The three securities are: 

First, a 3-year note in the amount of $19.0 billion, maturing on May 15, 

1999.This note is scheduled to be auctioned on a yield basis at 1:00 p.m. 

Eastern time on Tuesday, May 7, 1996. 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 $14.0 billion, maturing on May 

15, 2006. This note is scheduled to be auctioned on a yield basis at 1:00 

p.m. Eastern time on Wednesday, May 8. The minimum purchase amount 

will be $1,000. 

Third, a 36-day cash management bill in the amount of $13.0 billion, 

maturing on June 20, 1996. This bill is scheduled to be auctioned on a yield 

basis at 1:00 p. m. Eastern time on Thursday, May 9. The minimum 

purchase amount will be $10,000. 

RR-1047 
The new schedule will be as follows: 

--the six issues of 10-year notes each year will occur in the regular midquarter 

refunding operations and on July 15 and October 15; 

--the July 15 and October 15 10-year notes will have July 15 and October 15 maturity 

dates, unless those issues were reopenings of outstanding midquarter refunding 

securities; 

--the new issue sizes for the February and May 10-year notes be could be somewhat 

larger than those in the second half of the calendar year, since they will be the only 

10-year issues in those quarters; and 

--the three issues of 30-year bonds each year will occur in the February 15, August 15, 

and November 15 midquarter refunding operations. 

The Treasury has sold 10-year notes in regular midquarter refunding offerings since 

May 15, 1980. The 30-year bonds were offered in regular quarterly refundings between 

1977 and May 1993, and they have been offered twice each year since August 1993. The 

size of each 10-year note and 30-year bond issue has grown. With the reductions in the 

frequency of 30-year bonds to two auctions per year and the elimination of 7-year note 

auctions, the Treasury's intermediate and longer term borrowing have become increasingly 

bunched. The attached charts show the growth in 10- and 30-year auction sizes from 1986 to 

the present. 

While offering six 10-year notes and three 30-year bonds each year, the Treasury will 

reduce the size of each auction somewhat from current levels so that total annual issuance in 

future years will not change significantly from the levels that otherwise would have been 

necessary. The larger number of somewhat smaller auctions will improve Treasury's cash 

management, as well as spread out our exposure to unusual market conditions, without 

compromising the market liquidity of individual notes and bonds. Also, the somewhat 

smaller auctions held closer together should enhance the Treasury's ability to reopen issues. 

The added maturity and coupon dates will also open more possibilities for stripping. 

The new issues have been added to the borrowing schedule in the second half of the 

calendar year, when the Treasury's seasonal borrowing requirements are relatively large. 

The schedule for the new issues was also matched with the maturity dates of the old 7-year 

notes and the midquarter refunding maturity dates. The decision we are announcing today 

concerning the Treasury's longer term borrowing strategy is consistent with the mix of new 

issues of marketable securities that the Treasury announced in May 1993 and is not expected 

to alter the average life of the Treasury debt to any significant degree. Today's decision also 

takes into account the smaller Federal budget deficits that are forecast today, compared with 

those estimated in 1993, as shown in the chart that is also attached. 

6. The tentative auction calendars for May, June, and July are included in the 

chart package that was distributed today.