TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

July 31, 1991 

Today we are announcing the terms of our regular August 

quarterly refunding. I will also discuss the Treasury's 

financing requirements for the balance of the current calendar 

quarter and our estimated cash needs for the October-December 

1991 quarter. 

1. We are offering $38.0 billion of notes and bonds to 

refund $21.6 billion of privately-held notes maturing on 

August 15 and to raise approximately $16.4 billion of cash. The 

three securities are: 

--First, a 3-year note in the amount of $14.0 billion, 

maturing on August 15, 1994. This note is scheduled to 

be auctioned on a yield basis on Tuesday, August 6. 

The minimum denomination will be $5,000. Purchases may be 

made in any higher multiples of $5,000. 

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

maturing on August 15, 2001. This note is scheduled to 

be auctioned on a yield basis on Wednesday, August 7. 

The minimum denomination will be $1,000. 

--Third, a 30-year bond in the amount of $12.0 billion, 

maturing August 15, 2021. This bond is scheduled to be 

auctioned on a yield basis on Thursday, August 8. The 

minimum denomination will be $1,000. 
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2. We will accept noncompetitive tenders up to $1,000,000 

for each of the note and bond auctions. 

3. If, under Treasury's usual operating procedures, the 

auction of 10-year notes results in the same interest rate as on 

the outstanding 8% bonds of August 15, 2001, the new notes will 

be issued with either a 7-7/8% or an 8-1/8% coupon. The 8-1/8% 

coupon rate will apply if the auction results in an average yield 

in a range of 8.07% to 8.24%. 

4. For the current July-September quarter, we estimate a 

net market borrowing need of $107.7 billion. The estimate 

assumes a $30 billion cash balance at the end of September. We 

may want to have a higher balance, depending upon our assessment 

of cash needs at the time. 

Including this refunding we will have raised $63.1 billion 

of the $107.7 billion in net market borrowing needed this JulySeptember quarter. This net borrowing was accomplished as 

follows: 

-- $4.2 billion of cash from the 7-year note that settled 

July 15; 

-- $8.1 billion of cash from the 2-year notes which settled 

July 1 and July 31; 

-- $11.5 billion of cash from the 5-year notes which settled 

July 1 and July 31; 

-- $18.9 billion of cash from the sale of the regular weekly 

bills, including the bills announced yesterday; 
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-- $4.0 billion of cash in 52-week bills; 

-- $16.4 billion of cash from the refunding issues announced 

today. 

The $44.6 billion to be raised in the rest of the JulySeptember quarter could be accomplished through sales of regular 

13-, 26-, and 52-week bills, and 2-year and 5-year notes at the 

end of August and September. We may sell cash management bills 

to cover low cash balances in the quarter. 

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

the range of $85 to $90 billion for the October-December 1991 

quarter, assuming a $30 billion cash balance on December 31. 

6. The 10-year notes and 30-year bonds 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.