MINUTES OF THE MEETING OF THE 

TREASURY BORROWING ADVISORY COMMITTEE 

OF THE PUBLIC SECURITIES ASSOCIATION 

AUGUST 4 AND 5, 1992 

Auaust 4 

The Committee convened at 9:00 a.m. at the Treasury 

Department. All members were present (see the attached list). 

I gave the Committee an informational background briefing 

updating Treasury borrowing estimates and historical information 

relevant to the August mid-quarter refunding. The borrowing 

estimates and background information had been released to the 

public on August 3, 1992. 

The Committee also received a briefing by a Treasury staff 

member on current economic conditions, which was followed by a 

question-and-answer period. Under Secretary Powell then 

ttchargedl' the Committee to make recommendations on the August 

Treasury refunding and related matters (see the attached Charge). 

The meeting adjourned at 10:30 a.m. 

The Committee reconvened at 2:45 p.m. at the Madison Hotel. 

All members were present. The Chairman proposed that the 

Committee recommend that the Treasury sell $15 billion of 3-year 

notes, $11 billion of 10-year notes, and $10 billion of 30-year 

bonds, all new securities, and all at yield auctions. There 

being no counterproposal, the Committee voted unanimously to 

recommend the refunding as proposed. 

The Committee noted that the Treasury could raise $75 

billion of cash in the July-September quarter, the amount that 

the Treasury had announced on August 3, by leaving auction sizes 

unchanged and selling intra-quarter cash management bills to 

mature on September 17. This was the consensus recommendation, 

although the Committee indicated, also by consensus, that a 

somewhat higher cash balance than the $35 billion that was 

estimated by the Treasury would not be out of line with recent 

seasonal patterns. 

For the October-December quarter, several Committee members 

noted that their own estimates of Treasury borrowing needs were 

somewhat below the Treasury estimate. They agreed by consensus 

on the desirability of Treasury issues of cash management bills 

in several tranches during the quarter to total about $38 billion 

and to mature in April and June 1993. The cash management bills 

would transfer a portion of the Treasury's heavy October-December 

market borrowing requirement into the April-June quarter and 

provide flexibility, if the Treasury borrowing requirement were 

lower than the Treasury August 3 estimate of $115 to $120 
billion. The Committee agreed, without formal vote, to recommend 

a $30 billion cash balance for December 31, 1992. The Committee 

then outlined the rest of the recommended financing schedule 

within these parameters. 

The Committee, by consensus, agreed to request informally 

that the Treasury Department schedule the meetings for the 

regular mid-quarter refunding in November 1992 for November 2 and 

3, 1992. 

The meeting adjourned at 3:30 p.m. 

Ausust 5 

The Committee reconvened at 9:00 a.m. at the Treasury. All 

members were present, except Mr. Roberts. The Chairman presented 

the Committee report to Under Secretary Powell and Deputy 

Assistant Secretary Danker. There was a question-and-answer 

period related to the recommendations. The meeting adjourned at 

9:30 a.m. 

Attachments 

~o'mestic Finance 

August 6, 1992