TALKING POINTS 

FOR THE 

FINANCING PRESS CONFERENCE 

February 5, 1992 

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 1992 

quarter. 

1. We are offering $36.0 billion of notes and bonds to 

refund $21.0 billion of privately-held notes maturing on February 

15 and to raise approximately $15.0 billion of cash. 

The three new securities are: 

-- First, a 3-year note in the amount of $15.0 billion, 

maturing on February 15, 1995. This note is scheduled 

to be auctioned on a yield basis on Tuesday, 

February 11. The minimum purchase amount will be 

$5,000. Purchases may be made in any higher multiples 

of $5,000. 

-- Second, a 9-3/4-year note in the amount of $11.0 

billion, a reopening of the 7-1/2 percent note maturing 

on November 15, 2001. This note is scheduled to be 

auctioned on a yield basis on Wednesday, 

February 12. The minimum purchase amount will be 

$1,000. 
-- Third, a 29-3/4-year bond in the amount of $10.0 

billion, a reopening of the 8 percent bond maturing on 

November 15, 2021. This bond is scheduled to be 

auctioned on a yield basis on Thursday, February 13. 

The minimum purchase amount will be $1,000. 

2. We have reviewed the size and composition of this 

refunding carefully, and we have concluded that taxpayer 

financing costs can be lowered at the margin by a modest 

reduction in the maturity structure of the debt. We do not 

expect to make further cuts in long term financing in the future. 

This change is not a departure from our long-held view that, over 

time, the cost of financing the debt is minimized by a stable, 

predictable pattern of Treasury borrowing. 

3. The 7-1/2 percent bond of August 15, 1988-93 was called 

for redemption on October 9, 1991; $.9 billion is held by the 

public. It will also be redeemed on February 18 from available 

funds. The 6 percent 2-year note that'was issued in October 1991 

included an amount sufficient to redeem the 7-1/2 percent bond 

prior to maturity. 

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

for each of the note and bond auctions. As Treasury announced on 

January 22, 1992, a bidder who holds a position in when issued 

trading, or in futures or forward contracts, may not submit a 
noncompetitive tender for its own account. A bidder, whether 

I, bidding directly or submitting bids through a depository 

i 

institution or government securities broker/dealer, may not 

submit a noncompetitive bid for its own account in the same 

auction in which it submits a competitive bid for its own 

account. 

5. As announced on February 3, 1992, we estimate a net 

market borrowing need of $84.7 billion for the January-March 

quarter, including an allowance for Resolution Trust Corporation 

operations. The estimate assumes a $20 billion cash balance at 

the end of March. 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 $29.3 billion 

of the $84.7 billion in net market borrowing needed this JanuaryMarch quarter. This net borrowing was accomplished as follows: 

$4.8 billion of cash from the 7-year note that settled 

January 15; 

$3.9 billion of cash from the 2-year note that 

settled January 31: 

$9.4 billion of cash from the 5-year note that 

settled January 31; 

$1.2 billion of cash in the 52-week bills; 

a paydown of $5.0 billion in sales of the regular 

weekly bills, including the bills announced yesterday; 
and 

-- $15.0 billion of cash from the refunding issues 

announced today. 

The $55.4 billion to be raised in the rest of the JanuaryMarch quarter could be accomplished through sales of regular 13-, 

26-, and 52-week bills, and 2-year and 5-year notes at the end of 

February and March. Cash Management bills may be necessary to 

cover the cash low point in the cash balance in March. 

6. We estimate Treasury net market borrowing needs to be 

in the range of $70 to $75 billion for the April-June 1992 

quarter, assuming a $30 billion cash balance on June 30. The 

Treasury's April-June borrowing estimate includes an allowance 

for Resolution Trust C.orporation operations. 

7. The 10-year notes and 30-year bonds 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. 

8. The May midquarter refunding will be announced on 

April 29, 1992.