--

--

TALKING POINTS FOR THE 

FINANCING PRESS CONFERENCE 

April 29, 1992 

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 1992 quarter. 

1. We are offering $36.0 billion of notes and bonds to 

refund $27.5 billion of privately held notes maturing on 

May 15 and to raise approximately $8.5 billion of cash. 

The three securities are: 

First, a 3-year note in the amount of $15.0 billion, 

maturing on May 15, 1995. This note is scheduled to be 

auctioned on a yield basis on Tuesday, May 5, 1992. 

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

may be made in any higher multiples of $5,000. 

Second, a 10-year note in the amount of $11.0 billion, 

maturing May 15, 2002. This note is scheduled to be 

auctioned on a yield basis on Wednesday, May 6, 1992. 

The minimum purchase amount will be $1,000. 

-- Third, a 29 1/2-year bond in the amount of $10.0 

billion, a reopening of the 8 percent bond maturing 

on November 15, 2021. This bond is scheduled to be 
auctioned on a yield basis on Thursday, May 7, 1992. 

The minimum purchase amount will be $1,000.

2 

2. We will accept noncompetitive tenders up to $5,000,000 

for each of the note and bond auctions. 

3. As announced on Monday, April 27, 1992, we estimate a 

net market borrowing need of $42.8 billion for the April-June 

quarter. The estimate assumes a $30 billion cash balance at the 

end of June. We may want tb have a higher balance, depending upon 

our assessment of cash needs at the time. 

Including this refunding, we will have raised $13.6 billion 

of the $42.8 billion in net market borrowing needed this AprilJune quarter. This net borrowing was accomplished as follows: --

$4.3 billion of cash from the 7-year note that settled April 

15; 

-- $3.8 billion of cash from the 2-year note that 

settles April 30; 

-- $11.2 billion of cash from the 5-year note that 

settles April 30; -- $5.1 billion of cash in the 52-week bills; 

-- $10.8 billion of cash in the sales of the regular 

weekly bills, including the bills announced yesterday 
-- a paydown of $30.1 billion from the cash management 

bills which matured in April;

and

-- $8.5 billion of cash from the refunding issues 

announced today. 

3 

The $29.2 billion to be raised in the rest of the AprilJune 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. Short-dated cash management bills may be 

necessary in mid-May and early June to cover the low points in 

the cash balance. 

4. We estimate Treasury net market borrowing needs to be 

in the range of $110 to $115 billion for the July-September 1992 

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

The Treasury's estimates for the April-June and the JulySeptember quarters include allowances for Resolution Trust 

Corporation operations. 

5. The Treasury has been approached by the Government of 

Argentina regarding a direct issue of 30-year zero-coupon bonds 

in connection with Argentina's recent debt-restructuring 

agreement with its commercial banks. The Treasury is prepared in 

directly to Argentina, as debt restructuring by At the same 

time, the Treasury is encouraging Argentina to explore the 

various opportunities that may exist to purchase the zeros in 

the private market. We anticipate that any such direct issuance 
by the Treasury would not tale place before the final calendar 

quarter of 1992. 

6. The 10-year notes and 29 1/2-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. 

7. The August midquarter refunding will be announced on 

August 5, 1992.