TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

May 2, 1990 

Today we are announcing the terms of our regular May 

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 July-September 1990 

quarter. 

1. We are offering $30.50 billion of notes and bonds to 

refund $18.1 billion of privately-held notes and bonds maturing 

on May 15 and to raise approximately $12.4 billion of cash. The 

three securities are: 

First, a 3-year note in the amount of $10.50 billion 

maturing on May 15, 1993. This note is scheduled to be 

auctioned on a yield basis on Tuesday, May 8. The 

minimum denomination will be $5,000. 

Second, a 10-year note in the amount of $10.00 billion 

maturing on May 15, 2000. This note is scheduled to be 

auctioned on a yield basis on Wednesday, May 9. The 

minimum - denomination will be $1,000. 

Third, a 30-year bond maturing May 15, 2020 in the 

amount of $10.00 billion. This bond is scheduled to be. 

auctioned on a yield basis on Thursday, May 10. The 

minimum denomination will be $1,000. 

accept noncompetitive tenders up to $1,000,000 for each 

of these issues. 
2. For the current April-June quarter, we estimate a net market 

borrowing need of $12.6 billion, assuming a $30 billion cash 

I-.---= - 

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

balance, depending upon our assessment of cash needs at the time. 

Including this refunding, we will have raised $2.6 billion 

of the $12.6 billion in marketable borrowing needed this AprilJune quarter. This net borrowing was accomplished by borrowing 

$27.8 billion and paying down $25.2 billion as follows: 

-- $2.5 billion of cash from the 2- and 4-year notes which 

settled April 2; 

-- $2.8 billion of cash from the 7-year note that settled 

April 16; 

-- $1.5 billion of cash from the 2-year note which settled 

April 30; 

-- $6.9 billion of cash in regular weekly bills, including 

the bills announced yesterday; 

-- $1.7 billion of cash in 52-week bills; 

-- $25.2 billion paydown in cash management bills; and 

-- $12.4 - billion of cash from the refunding issues 

announced today. 

The $10.0 billion to be raised in the rest of the April-June 

quarter could be accomplished through sales of regular 13-, 26-, 

and 52-week bills, a 2-year note in May and a 5-year 2-month 

note in early June. Cash management bills may be necessary to 

cover the low points in the cash balance. 
3. The $12.6 billion net Treasury borrowing requirement for the 

April-June quarter includes Treasury borrowing to finance Federal 

Financing Bank lending to the Resolution Trust Corporation. On 

April 12 the Oversight Board of the RTC announced that RTC is 

authorized to,borrow a maximum of $42.7 billion net from FFB in 

the April-June period. 

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

range of $30 to $35 billion for the July-September quarter, -5 assuming a w-- 

$30 billion cash balance on September 30. The 

Treasury's July-September borrowing estimate does not include any 

allowance for FFB lending to RTC. Treasury plans to update its 

market borrowing estimate for the July-September quarter as soon 

as the Oversight Board has reviewed and approved the RTC1s 

working capital budget for that period. 

5. We anticipate that the next auction of REFCORP bonds will be 

announced on July 3 for auction July 10 and settlement July 17. 

6. The notes and bonds 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.