MINUTES OF THE MEETING OF THE 

TREASURY BORROWING ADVISORY COMMITTEE 

OF THE PUBLIC SECURITIES ASSOCIATION 

MAY 4 AND 5, 1993 

The Committee convened at 9:00 a.m. at the Treasury 

Department. All members were present, except Mr. de la 

Gueronniere (see the attached list). 

I gave the Committee an informational background briefing 

updating Treasury borrowing estimates and historical information 

relevant to the May midquarter refunding. The borrowing 

estimates and background information had been released to the 

public on May 3, 1993. The Committee was not provided any 

information about the outcome of the Treasury's study of the 

maturity mix of marketable financing. In the February 1993 

refunding press conference, the Treasury had said the results of 

the study would be announced by May 5. 

The Committee also received a briefing by a Treasury staff 

member on current economic conditions, which was followed by a 

question-and-answer period. Acting Assistant Secretary Danker 

then "chargedw the Committee to make recommendations on the May 

Treasury refunding and related matters (see the attached Charge). 

The meeting adjourned at 10:40 a.m. 

The Committee reconvened at 1:45 p.m. at the Madison Hotel. 

All members were present, except Mr. de la Gueronniere. In the 

absence of information about the outcome of the Treasury's 

maturity mix study, the Committee decided by consensus to 

reaffirm the principles that were outlined in the report of its 

special meeting on March 15, 1993. The Committee also decided by 

consensus to offer to advise the Treasury regarding 

implementation of any shifts in, financing emphasis that might be 

announced on May 5. 

The Committee then turned to the May refunding and the size 

of the June and September end-of-quarter Treasury cash balances. 

The Committee decided by a vote of 19-to-0 to recommend a May 

refunding totaling $35.5 billion to $36.5 billion, with a 

midpoint of $36 billion, compared with the $35.5 billion sold in 

the February 1993 refunding. The Committee voted by 19-to-0 to 

recommend reopenings of the 10- and 30-year securities that were 

offered originally in the February refunding, if the Treasury 

were to offer 10- and 30-year securities May. 

For the remainder of the April-June quarter, the Committee 

recommended maintaining the 5-year notes in May and June at the 

$11.0 billion size issued in April, increasing the 2-year notes 

to $15.5 billion in May and $15.75 billion in June, increasing 

the 52-week bill to $15 billion in June, and increasing weekly 
bills to raise the 

recommended a cash 

June 17. 

rest of the cash needed. The Committee also 

management bill on May 17 to mature on 

The Committee recommended unanimously end-of-quarter cash 

balances of $35 billion or somewhat higher on June 30 and $40 

billion on September 30. The Committee did not make specific 

financing recommendations for the July-September quarter. 

The meeting adjourned at 3:00 p.m. 

The Committee reconvened at 9:00 a.m. at the Treasury. All 

members were present, except Messrs. Ahearn, Corzine, and de la 

Gueronniere. The Chairman presented the Committee report to 

Acting Assistant Secretary Danker. There was a question-andanswer period related to the recommendations. 

The meeting adjourned at 9:40 a.m. 

ill K. 

May 6, 1993 

Domestic Finance 

Attachments