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TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

February 2, 1994 

Today, we are announcing the terms of the regular Treasury 

February midquarter refunding. I will also discuss Treasury 

financing requirements for the balance of the current calendar 

quarter and our estimated cash needs for the April-June 1994 

quarter. 

1. We are offering $40.0 billion of notes and bonds to 

refund $24.0 billion of privately held notes and bonds maturing 

on February 15 and to raise approximately $16.0 billion of cash. 

The three securities are: 

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

maturing on February 15, 1997. This note is scheduled 

to be auctioned on a yield basis at 1:00 p.m. Eastern 

time on Tuesday, February 8, 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 February 15, 2004. This note is 

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

p.m. Eastern time on Wednesday, February 9. The 

minimum purchase amount will be $1,000. 
2

-- Third, a 29 1/2 year bond in the amount of $11.0 

billion, which is a reopening of the 6 1/4 percent 

bond maturing August 15, 2023. This bond is 

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

p.m. Eastern time on Thursday, February 10. The 

minimum purchase amount will be $1,000. 

2. As announced on Monday, January 31, 1994, we estimate 

a net market borrowing need of $45.0 billion for the JanuaryMarch quarter. The estimate assumes a $20 billion cash balance 

at the end of March. Including this refunding, we will have 

raised a net $12.6 billion of the $45.0 billion in market 

borrowing needed this quarter. This net cash from borrowing was 

accomplished as follows: 

-- $3.6 billion from the 2-year note that settled on 

January 31; 

-- $12.6 billion from the 5-year note that settled on 

January 31; 

-- $2.8 billion from the 52-week bills; 

-- a paydown of $1.0 billion from the regular weekly 

bills, including those announced February 1; 

-- a paydown of $14.1 billion in the cash management bill 

which matured on January 20; 

-- a paydown of $7.3 billion in the 7-year note that 

matured January 15; and 

-- $16.0 billion of cash from the notes and bonds in the 

refunding issues announced today. 

The Treasury will need to raise $32.4 billion in market 

borrowing during the rest of the January-March 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 March. 

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

the range of $15 to $20 billion for the April-June 1994 quarter, 

assuming a $30 billion cash balance on June 30. 

4. We will accept noncompetitive tenders up to $5 million 

for each of the notes and bonds. The 10-year note and 29-1/2 

year bond 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. 

5. Last June the Treasury's Borrowing Advisory Committee 

suggested that over some period of years the Treasury might want 

to consider adding new cycles and issuing new types of 

securities, specifically floating rate notes. The Treasury has 

begun preliminary research into the potential for adding 

floating-rate securities to the regular Treasury offering cycles 

as part of our on-going review of Treasury debt management. We 

have no plans to change the current regular issue cycles, and we 

have no bias as to whether or not floating rate notes would be a 

viable option for us. We have solicited the views of the PSA 

Treasury Borrowing Advisory Committee on the terms of a 

floater which might be attractive to investors. In this 
connection, the Treasury would also welcome the views of other 

market participants who are informed on this subject. 

6. Finally, the May midquarter refunding press conference 

will be held on Wednesday, May 4, 1994.