TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

May 4, 1994 

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 1994 quarter. 

1. We are offering $29.0 billion of notes to refund $28.2 

billion of privately held notes maturing on May 15 and to raise 

approximately $0.8 billion of cash. The two securities are: 

-- First, a 3-year note in the amount of $17.0 billion, 

maturing on May 15, 1997. This note is scheduled to be auctioned 

on a yield basis at 1:00 p.m. Eastern time on Tuesday, May 10, 

1994. 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 $12.0 

billion, maturing on May 15, 2004. This note is 

scheduled to be auctioned on a yield basis at 1:00 

p.m. Eastern time on Wednesday, May 11. The minimum 

purchase amount will be $1,000. 

2. On January 11, 1994, the Treasury announced that it 

would call the 8 1/2% bond 1994-99 on May 15, 1994. The 5-year 

notes issued January 31, 1994 included an amount sufficient to 

refinance $961 million of privately held bonds. 
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3. As announced on Monday, May 2, 1994, we estimate a 

net market borrowing need of $8.0 billion for the April-June 

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

end of June. Including this refunding, net paydowns of 

marketable securities have amounted to $11.2 billion. This was 

accomplished as follows: 

raised $3.1 billion from the 2-year note that 

settled on May 2; 

raised $11.5 billion from the 5-year note that 

settled on May 2; 

-- raised $4.5 billion from the 52-week bills; 

-- paid down $9.8 billion from the regular weekly 

bills, including those announced yesterday, May 3; 

-- paid down $14.0 billion in the cash management 

bill which matured on April 21; 

-- paid down $7.3 billion in the 7-year note 

that matured April 15; and 

-- raised $0.8 billion of cash from the notes in 

the refunding issues announced today. 

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The Treasury will need to raise $19.2 billion in market 

borrowing during the rest of the April-June quarter. This 

financing could be accomplished through regular sales of 13-, 

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

management bill financing may be needed in June. 

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

the range of $55 to $60 billion for the July-September 1994 

quarter, assuming a $40 billion cash balance on September 30. 
5. We will accept noncompetitive tenders up to $5 million 

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

6. Finally, the August refunding will be composed of three 

securities: a 3-year note, a l0-year note and a long-term bond. 

The Treasury is considering issuing a 29 3/4-year bond in the 

August refunding to mature on May 15, 2024. A 29 3/4-year bond, 

with interest payments in May and November, would enhance the 

liquidity of the STRIPS market and therefore, potentially reduce 

Treasury borrowing costs. The August refunding press conference 

will be held on Wednesday, August 3, 1994.