TREASURY NEWS 

OFFICE OF PUBLIC AFFAIRS 4500 PENNSYLVANIA AVENUE, N.W. -WASHINGTON, D.C. -20220 m(202) 622-2960 

FOR IMMEDIATE RELEASE 

May 3, 1995 

REMARKS BY DARCY BRADBURY 

DEPUTY ASSISTANT SECRETARY (FEDERAL FINANCE) 

TREASURY QUARTERLY REFUNDING PRESS CONFERENCE 

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 1995 quarter. 

1. We are offering $30.0 billion of notes to refund $32.1 

billion of privately held notes and bonds maturing on May 15. 

The securities are: 

-- First, a 3-year note in the amount of $17.5 billion, 

maturing on May 15, 1998. This note is scheduled to be 

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

Tuesday, May 9, 1995. 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 $12.5 billion, 

maturing on May 15, 2005. This note is scheduled to be 

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

For releases, speeches, public schedules and official biographies, call our 24hur frur line at (202) 622-2040 
2 

Wednesday, May 10. The minimum purchase amount will be 

$1,000. 

2. We are also announcing a $17 billion 38-day cash 

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

June 22, 1995. This bill is scheduled to be auctioned on a 

discount rate basis at 1:00 p.m. Eastern time on Thursday, May 

11. Noncompetitive tenders will be accepted up to $1 million. 

The minimum purchase amount will be $10,000 and purchases above 

$10,000 must be in multiples of $1,000. 

3. As announced on Monday, May 1, 1995, we estimate a net 

market borrowing need of $25.8 billion for the April-June 1995 

quarter. The estimate assumes a $45 billion cash balance at the 

end of June. Including the notes in this refunding, we have paid 

down $19.7 billion of cash from the sale of marketable 

securities. This was accomplished as follows: 

-- raised $2.2 billion from the 2-year note that settled 

May 1; 

-- raised $12.1 billion from the 5-year note that settled 

May 1; 

-- raised $2.3 billion from the 52-week bills; 

-- paid down $18.1 in the regular weekly bills, including 

those announced yesterday, May 2; 

-- paid down $9.1 billion in cash management bills which 

matured April 20; 
3 

-- paid down $7.0 billion in the 7-year note that 

matured April 15; and 

-- will pay down $2.1 billion in the notes announced for 

the refunding today. 

4. The Treasury will need to raise $45.5 billion in market 

borrowing during the rest of the April-June quarter. We have 

taken into account the fact that the $17 billion cash management 

bill to be issued on May 15 will mature on June 22, before the 

end of the quarter. The financing remaining to be done before 

the end of June can be accomplished through regular sales of 13-, 

26-, and 52-week bills and 2-year and 5-year notes. Additional 

cash management bill financing may be needed to bridge the 

seasonal low-point in the balance in June. 

5. We estimate Treasury net market borrowing needs to be 

in the range of $40 to $45 billion for the July-September 1995 

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

The estimate does not include cash to be raised in the September 

2- and 5-year notes, which will be issued on October 2. 

6. With this May refunding and the increases of $.5 

billion each in the 2- and 5-year note offerings in April, the 

Treasury has begun to increase coupon offerings to reflect 

greater financing needs in future months. These increases are 

the first increases in the 2-year notes since July 1994, in 5- 
4 

year notes since January 1993, and in 3- and 10-year notes since 

August 1993. 

7. The Treasury is reviewing a draft study evaluating the 

results to date of the single-price auction technique. We expect 

to have a paper for public comment within the next couple of 

months. 

Treasury's use of the single-price auction method began 

with the 2- and 5-year note auctions in September 1992. The 

stated purpose was to determine whether the single-price auction 

technique broadens participation and reduces concentration of 

securities on original issue, and whether it reduces the 

Treasury's financing costs by encouraging more aggressive bidding 

by participants. 

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

for each of the notes announced today. The 10-year note 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. 

9. The August midquarter refunding press conference will 

be Wednesday, August 2, 1995.