TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

May 5, 1993 

Today, we are announcing the terms of the regular Treasury 

May midquarter refunding. I will also discuss Treasury financing 

requirements for the balance of the current calendar quarter and 

our estimated cash needs for the July-September quarter. 

1. We are offering $35.0 billion of notes and bonds to 

refund $23.9 billion of privately held notes maturing on May 15 

and to raise approximately $11.1 billion of cash. 

The three securities are: 

-- First, a 3-year note in the amount $16.0 billion, 

maturing on May 15, 1996. This note is scheduled to be 

auctioned on a yield basis on Tuesday, May 11, 1993. 

The minimum purchase amount will be $5,000. Purchases 

may be made in multiples of $1,000. 

-- Second, a 9 3/4-year note in the amount of $10.75 

billion, a reopening of the 6 1/4% note maturing on 

February 15, 2003. This note is scheduled to be 

auctioned on a yield basis on Wednesday, May 12, 1993. 

The minimum purchase amount will be $1,000. 

-- Third, a 29 3/4-year bond in the amount of $8.25 

billion, a reopening of the 7 1/8% bond maturing on 

February 15, 2023. This bond is scheduled to be 

auctioned on a yield basis on Thursday, May 13, 1993. 

The minimum purchase amount will be $1,000. 
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2. We are announcing a cash management bill in the amount, 

of $15.0 billion to mature on September 23, 1993. This bill will 

be auctioned at noon on Thursday, May 13 and will settle on May 

17. The minimum purchase will be $10,000. Additional purchases 

may be made in multiples of $1,000. 

3. On January 13, 1993, the Treasury announced that 

it would call the 7% bond of 5/15/93-98 and the 4 1/8% bond of 

5/15/89-94 on May 15. The 5-year notes announced on January 21, 

1993 included an amount sufficient to hedge the call of the $462 

million of privately held 7% bonds. The $73 million of privately 

held 4 1/8% bonds of May 15, 1989-94 will be repaid from 

available funds. 

4. As announced on Monday, May 3, we estimate a net market 

borrowing need of $37 billion for the April-~une quarter. The 

estimate assumes a $35 billion cash balance at the end of June. 

Including this refunding and the cash management bill 

being announced today, we will have raised a net $25.5 billion of 

the $37.0 billion in market borrowing needed this quarter. This 

net borrowing was accomplished as follows: 

-- $4.0 billion of cash from the 7-year note that settled 

-- $3.5 billion of cash from the 2-year note that settled 

April 30; 

-- $11.9 billion of cash from the 5-year note that settled 
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April 30; 

-- a net paydown $8.9 billion paydown in the sales of 

regular weekly bills, including the bills announced 

yesterday; 

-- $3.9 billion of net cash from the cash management 

bills; and 

-- $11.1 billion of cash from the refunding issues 

announced today. 

The $11.5 billion to be raised in the rest of the April-June 

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 May 

and June. An additional cash management bill may be needed to 

cover the low point in the cash balance in June. 

5. We estimate Treasury net market borrowing needs to be 

in the range of $90 to $95 billion for the July-September 

quarter, assuming a $40 billion cash balance on September 30. 

Beginning with the July-September estimates, the borrowing 

estimates include significant outlays for the Resolution Trust 

Corporation. These outlays are primarily for working capital 

based on both the freeing up of unallocated loss reserves for 

resolution purposes and the outlook for RTC funding legislation. 

6. We will accept noncompetitive tenders up to 

$5,000,000 for each of the notes and bonds. The 9 3/4-year notes 

and 29 3/4-year bonds being announced today are eligible for 
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conversion to STRIPS (Separate Trading of Registered Interest and 

Principal of Securities) and, accordingly, may be divided into 

separate interest and principal components. 

7. The August midquarter refunding press conference will 

be held on Wednesday, August 4, 1993.