TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

May 1, 1991 

Today we are announcing the terms of our regular May 

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 July-September 1991 

quarter. 

1. We are offering $37.0 billion of notes and bonds to 

refund $19.0 billion of privately-held notes maturing on May 15 

and to raise approximately $18.0 billion of cash. The three 

securities are: 

-- First, a 3-year note in the amount of $13.5 billion, 

maturing on May 15, 1994. This note is scheduled to be 

auctioned on a yield basis on Tuesday, May 7. The 

minimum denomination will be $5,000. 

-- Second, a 10-year note in the amount of $11.75 

billion, maturing on May 15, 2001. This note is 

scheduled to be auctioned on a yield basis on 

Wednesday, May 8. The minimum denomination will be 

$1,000. 

-- Third, a 30-year bond in the amount of $11.75 billion, 

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

auctioned on a yield basis on Thursday, May 9. The 

minimum denomination will be $1,000. 
2. We will accept 

for each of the note and 

3. For the current 

market borrowing need of 

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noncompetitive 

bond auctions. 

tenders up to $1,000,000 

April-June quarter, we estimate a net 

$40.0 billion, which includes Treasury 

borrowing to finance Resolution Trust Corporation operations. 

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

June. 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 $1.7 billion of 

the $40.0 billion in net market borrowing needed this April-June 

quarter. This net borrowing was accomplished as follows: 

-- $3.4 billion of cash from the 7-year note that settled 

April 15; 

-- $4.5 billion of cash from the 2-year notes which 

settled April 1 and April 30; 

-- $9.9 billion of cash from the 5-year notes which settled 

April 1 and April 30: 

-- $25.0 billion paydown in the regular weekly bills, 

including the bills announced yesterday; 

-- $2.8 billion of cash in 52-week bills; 

-- $12 billion paydown in the cash management bills; and 

-- $18.0 billion of cash from the refunding issues announced 

today. 

The $38.3 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 
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end of May. Since June 30 is a Sunday, the 2-year and 5-year 

notes to be auctioned at the end of June will settle July 1 and 

do not affect our borrowing for this quarter. We expect to sell 

cash management bills to cover low cash balances in the quarter. 

4. We estimate Treasury net market borrowing needs to be 

in the range of $110 to $115 billion for the July-September 1991 

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

The Treasury's July-September borrowing estimate includes an 

allowance for Resolution Trust Corporation activities. 

5. We believe that the current, regular issue cycles for 

Treasury bills, notes, and bonds will be sufficient to raise 

funds in the foreseeable future. Therefore, with the exception 

of cash management bill financing, the Treasury has no plans to 

alter the established issue pattern. 

6. In April, the Treasury decided not to call, on August 

15, 1991, the 7-1/2 percent bonds of August 15, 1988-93. Any 

future decision on calling the 7-1/2s, and other outstanding 

callable bonds, will depend upon circumstances prevailing at the 

time. If Treasury decides to call a bond, a 4-month notice will 

be provided to the public, as is required in the offering 

circulars pertaining to each callable bond. 

7. We are also announcing that, beginning with the weekly 

Treasury bills to be announced on May 7, the Treasury will 

announce all bill, note, and bond offerings at about 2:30 p.m., 

Eastern time. The next quarterly refunding press conference, 
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scheduled for July 31, 1991, will begin at 2:00 p.m., Eastern 

time, to allow time for preparation of news reports for the 

2:30 p.m. Eastern release time.