TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

February 3, 1993 

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 quarter. 

1. We are offering $35.5 billion of notes and bonds to 

refund $25.5 billion of privately held notes and bonds maturing 

on February 15 and to raise approximately $10.0 billion of cash. 

The three securities are: 

First, a 3-year note in the amount of $15.5 billion, 

maturing on February 15, 1996. This note is scheduled 

to be auctioned on a yield basis on Tuesday, February 

9, 1993. The minimum purchase amount will be $5,000. 

Purchases may be made in multiples of $5,000. 

Second, a 10-year note in tho amount of $10.75 billion, 

maturing on February 15, 2003. This note is scheduled 

to be auctioned on a yield basis on Wednesday, February 

10, 1993. The minimum purchase amount will be $1,000. 

Third, a 30-year bond in the amount of $9.25 billion 

maturing on February 15, 2023. This bond is scheduled 

to be auctioned on a yield basis on Thursday, February 

11, 1993. The minimum purchase amount will be $1,000. 
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2. We have reviewed the composition and size of this 

refunding package carefully, and we have concluded that Treasury 

financing costs can be lowered at the margin by this modest 

reduction in the maturity structure of the debt. Going forward, 

the Treasury is undertaking a thorough review of the composition 

of its marketable financing, and we hope to have this study 

completed in advance of the next quarterly refunding in May. 

3. As announced on Monday, February 1, we estimate a 

net market borrowing need of $67 billion for the January-March 

quarter. The estimate assumes a $20 billion cash balance at the 

end of March. 

Including this refunding, we will have raised $18.4 billion 

of the $67.0 billion in net market borrowing needed this quarter. 

This net 

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borrowing was accomplished as follows: 

$3.6 billion of cash from the 7-year note that settled 

January 15; 

$2.6 billion of cash from the 2-year note that settled 

February 1; 

$12.1 billion of cash from the 5-year note that settled 

February 1; 

$3.3 billion of cash in the 52-week bills; 

$3.0 billion of cash in the sales of regular weekly 

bills, including the bills announced yesterday; 

$10.0 billion of cash from the refunding issues 
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announced today; and 

-- a paydown of $16.2 billion of cash management bills on 

January 21; 

The $48.6 billion to be raised in the rest of the JanuaryMarch quarter could be accomplished through sales of regular 13-, 

26-, and 51-week bills and 2-year and 5-year notes. A cash 

management bill may be needed to cover seasonal needs in March. 

4. We estimate Treasury net market borrowing needs to be 

in the range of $25 to $30 billion for the April-June quarter, 

assuming a $35 billion cash balance on June 30. The borrowing 

estimate assumes that legislation to provide additional funding 

for thrift resolutions will not be enacted in time to permit 

significant Resolution Trust Corporation spending during the 

quarter. 

5. We will accept noncompetitive tenders up to $5,000,000 

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

bonds 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. 

6. The May midquarter refunding press conference will be 

held on Wednesday, May 5, 1993.