TALKING POINTS FOR THE 

FINANCING PRESS 

CONFERENCE 

August 4, 1993 

Today, we are announcing the terms of the regular Treasury 

August midquarter refunding. I will also discuss Treasury 

financing requirements for the balance of the current calendar 

quarter and our estimated cash needs for the October-December 

quarter. 

1. We are offering $38.5 billion of notes and bonds to 

refund $26.7 billion of privately held notes and bonds 

maturing on August 15 and to raise approximately $11.8 billion 

of cash. 

The three securities are: 

First, a 3-year note in the amount $16.5 billion, 

maturing on August 15, 1996. This note is scheduled 

to be auctioned on a yield basis on Tuesday, August 

10. 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 $11.0 

billion, maturing on August 15, 2003. This note is 

scheduled to be auctioned on a yield basis on 

Wednesday, August 11. The minimum purchase amount 

will be $1,000. 

2 
Third, a 30-year bond in the amount of $11.0 billion, maturing 

on August 15, 2023. This bond is scheduled to be auctioned on 

a yield basis on Thursday, August 12. The minimum purchase 

amount will be $1,000. 

In our May 5, 1993 press conference, we announced that 

beginning with this August refunding, the Treasury will offer 

30-year bonds semiannually. Therefore, the next 30-year bond 

is scheduled to be offered in the February 1994 refunding. 

2. As announced on Monday, August 2, we estimate a net market 

borrowing need of $58.3 billion for the July-September 

quarter. The estimate assumes a $40 billion cash balance at 

the end of September. Including this refunding, we will have 

raised a net $35.5 billion of the $58.3 billion in market 

borrowing needed this quarter. This net borrowing was 

accomplished as follows: 

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

settled August 2;

--$11.4 billion of cash from the 5-year note that 

settled August 2;

--$14.4 billion of net cash from the regular weekly 

bills including those announced yesterday;

--$0.9 billion of cash in the 52-weak bills;

--a paydown of $6.8 billion in the 7-year note that 

matured July 15; and
-- $11.8 billion of cash from the refunding issues 

announced today. 

The Treasury will need to issue $38.8 billion of 

marketable securities during the rest of the July-September 

quarter to paydown $16.0 billion of cash management bills that 

mature on September 23 and raise net cash of $22.8 billion. 

This financing could be accomplished through sales of regular 

13-, 26-, and 52week bills and 2-year and 5-year notes at the 

end of August and September. 

3. We estimate Treasury net market borrowing needs to be in 

the range of $95 billion to $100 billion for the OctoberDecember quarter, assuming a $35 billion cash balance on 

December 31. 

4. The borrowing estimates for the two quarters assume that 

legislation providing funds for resolutions of problem thrift 

institutions will be enacted shortly. 

5. For the foreseeable future, we believe that the current 

regular issue cycles for bills, notes, and bonds will be 

sufficient to refund maturing securities and raise needed 

cash. In order to maintain a regular, predictable pattern of 

debt issuance, we would provide ample advance notice to the 

public if there were to be any change in the regular 

offerings. 
6. We are also announcing that the Treasury is extending the 

single-price auction experiment for regular monthly offerings 

of 2- and 5-year notes for another year. Thus, we are 

extending the experiment, which began with the 2- and 5-year 

note auctions in September 1992, through the 2- and 5-year 

auctions to be held in August 1994. 

We believe that more observations are necessary to evaluate 

the single-price auction technique thoroughly. The results of 

the experiment to date have not revealed evidence that the 

single-price auctions have added to the cost of financing the 

debt. As we announced last September, the Treasury will 

evaluate the results according to indicators such as cost, 

breadth of participation in auctions, concentration of auction 

awards, yields at auction relative to when-issued and 

secondary market trading, and dispersion of bids 

7. We will accept noncompetitive tenders up to$5 million for 

each of the notes and bonds. The 10-year notes and 30-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. 

8. The November midquarter refunding press conference will be 

held on Wednesday, November 3, 1993.