TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

October 31, 1990 

Today we are announcing the terms of our regular November 

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 January-March 1991 quarter. 

1. We are offering $34.25 billion of notes and bonds to 

refund $23.5 billion of privately-held notes maturing on 

November 15 and to raise approximately $10.75 billion of cash. 

The three securities are: 

First, a 3-year note in the amount of $12.50 billion 

maturing on November 15, 1993. This note is scheduled 

be auctioned on a yield basis on Tuesday, November 6. 

The minimum denomination will be $5,000. 

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

maturing on November 15, 2000. This note is scheduled 

be auctioned on a yield basis on Wednesday, November 7. 

The minimum denomination will be $1,000. 

Third, a 29 3/4-year bond, a reopening of the 8 3/4 

percent bond maturing August 15, 2020 in the amount of 

$10.75 billion. This bond is scheduled to be auctioned on 

a yield basis on Thursday, November 8. The minimum 

denomination will be $1,000. 
2. We are also offering $12 billion of a 161-day cash 

management bill maturing April 25, 1991. The cash management bill 

is scheduled to be auctioned on a discount basis on Thursday, 

November 8, at 12:OO noon EST for settlement Thursday, 

November 15. The minimum purchase amount will be $10,000. 

3. We will accept noncompetitive tenders up to $1,000,000 

for each of the bill, note, and bond issues. Noncompetitive 

tenders for all Treasury security auctions, beginning with the 

Treasury bills to be auctioned on November 5, must be received 

one hour prior to the deadline for receipt of competitive tenders 

on the day of the auction or postmarked by the day before the 

auction and received by the Federal Reserve Bank or Bureau of 

Public Debt before COB on the issue date of the security. 

4. For the current October-December quarter, we estimate a 

net market borrowing need of $97.7 billion, which includes 

Treasury borrowing to finance Resolution Trust Corporation 

operations. The estimate also assumes a $30 billion cash balance 

at the end of December. We may want to have a higher balance, 

depending upon our assessment of cash needs at the time. 

Including this refunding and the cash management bill, 

we will have raised $42.0 billion of the $97.7 billion in net 
3 

market borrowing needed this October-December quarter. This net 

borrowing was accomplished as follows: 

-- $2.9 billion of cash from the 2- and 4-year notes which 

settled October 1; 

-- $3.8 billion of cash from the 7-year note that settled 

October 15; 

-- $2.9 billion of cash from the 2-year note which settles 

today, October 31; 

-- $9.2 billion of cash in regular weekly bills, including 

the bills announced yesterday; 

-- $ .4 billion of cash in 52-week bills; 

-- $10.8 billion of cash from the refunding issues 

announced today; and 

-- $12.0 billion from the cash management bill announced 

today. 

The $55.7 billion to be raised in the rest of the OctoberDecember quarter could be accomplished through sales of regular 

13-, 26-, and 52-week bills, a 2-year note in November, a 5-year 

2-month note in early December, and 2-year and 4-year notes at 

the end of December. Additional cash management bills may be 

necessary to cover the low point in cash in early December. 

The $12.5 billion cash management bill issued October 19 

matures December 27 and does not affect the net market borrowing 

total. 
4 

5. The Treasury's October-December borrowing estimate is 

consistent with Resolution Trust Corporation operating plan that 

was approved by the Oversight Board on October 25. That 

operating plan was based on the assumption that Congress would 

act on funding for FY 1991. Since the Congress did not act on 

funding, the Oversight Board will meet in the near future to 

discuss a revised operating plan. Treasury plans to update its 

market borrowing estimates as soon as the Oversight Board has 

reviewed and approved the RTCVs working capital budget. 

6. We estimate Treasury net market borrowing needs to be 

in the range of $47 to $52 billion for the January-March 1991 

quarter, assuming a $20 billion cash balance on March 31. The 

Treasury's January-March borrowing estimate does not include any 

allowance for Resolution Trust Corporation activities. 

7. We anticipate that the next auction of REFCORP bonds 

will be announced on Wednesday, January 2, for auction on 

Tuesday, January 8, and settlement Tuesday, January 15. 

8. The 10-year note and 29 3/4-year bond announced today , 

will be 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.