S. Treasury Borrowing
Uses 271

April - June 1998

TREASURY FINANCING REQUIREMENTS

August 3, 1998-1

050100150200250

Sources

$Bil.

Coupon Maturities

se

sh

ce

Coupon Refunding

State and Local

Cash Surplus

Market

Paydown

127

128

98

128

3

4

15

2

1

2

1

1

4

3

4

Includes budget surplus, direct loan activity, changes in accrued interestand checks outstanding and minor miscellaneous debt transactions.

1

1
y

TREASURY FINANCING REQUIREMENTS

July - September 1998

August 3, 1998-2

0

50100150

Uses Sources

$Bil.

pon

ties

MarketPaydown

Coupon Refunding

Decrease in Cash Balance

Surplus

1

1

176

State and Local

5 32

2

1 2 1

131

4

8

131

Includes budget deficit, direct loan activity, changes in accrued interestand checks outstanding and minor miscellaneous debt transactions.

3

4

1

4

2

Assumes a $40 billion cash balance September 30, 1998.

2
TREASURY OPERATING CASH BALANCE

Daily

Total Operating

Balance

sury

e August 3, 1998-3

1

Without

New

Borrowin

g

Tax and Loan

Accounts Balance

Federal Reserve Account

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

1997 1998 1 Data points are semi-monthly.
II III IV I II III IV I II III IV I II III IV I II III 

-120-100

-80-60-40-20

0

20

40

6080

4

8.1

40.6

61.2

74.5

25.3 25.7

48.1

77.2

-25.7

40.3

41.344.6

-71.5

6.5

17.0

10.3

-97.9

-45.0

TREASURY NET MARKET BORROWING

$Bil.

1

August 3,1998-4

Issued or announced through July 31, 1998.

Excludes Federal Reserve and Government Account Transactions. 1

Coupons

Bills

Over 10 yrs

5 - 10 yrs

2 - under 5 yrs

1994 1998 1995 1996 1997

2

2
 (Billions of Dollars)

NET MARKET BORROWING

July – September 1998

August 3, 1998-5

Issued or announced through July 31, 1998. 1

Total -45.0Done -43.6

Bills

Regular weekly -.652 week -3.1 Total -3.7

Coupons

7-year note -9.72-year note -3.65-year notes — end of month -35.030-year inflation-indexed bond 8.4

-39.9

To Be Done -1.4

1
STRIBUTION OF COMPETITIVE AUCTION AWARDS OF

TREASURY NOTES

August 3, 1998-6

y

Primary DealersForeign &InternationalFinancial Insts.InvestmentFundsPension FundsOther

10-Year Fixed Rate

November 1997 and

February & May 1998 Auctions

* 72%

12%

16%

1%

51%

%

*

nflation-Indexed

& April 1997 and

y 1998 Auctions

*Less than 0.5 percent.

Note: Investment funds include investment mgrs., mutual funds, and hedge funds.

Financial insts. include nonprimary dealers, depository insts., insurance cos., and financial cos.Other includes individuals, and nonfinancial cos.
STRIBUTION OF COMPETITIVE AUCTION AWARDS OF

TREASURY BONDS

August 3, 1998-7

ry

Primary DealersForeign &InternationalFinancial Insts.InvestmentFundsPension FundsOther

30-Year Fixed Rate

November 1997 and February 1998

Auctions

67%

2%

31%

43% 

%

*

11%

nflation-Indexed

July 1998 Auction

*Less than 0.5 percent.

Note: Investment funds include investment mgrs., mutual funds, and hedge funds.

Financial insts. include nonprimary dealers, depository insts., insurance cos., and financial cos.Other includes individuals, and nonfinancial cos.

*

*
979899

100

y

August 3, 1998-8

Price$

1 Real Price for inflation-indexed note

Correlation: 21% STD IIN/STD Nominal = 0.41

5-1/2% of 2/15/08

3-5/8% IIN of 1/15/08

OR 10-YEAR 3-5/8% IIN AND 10-YEAR 5-1/2% FIXED-RATE NOTE

Daily Data: Beginning 2/12/98

1

Mar Apr May Jun Jul

1998
270280290300310320

PRICES FOR 10-YEAR 3-5/8% IIN vs. SPOT GOLD

Daily Data: Beginning 1/15/98

August 3, 1998-9

Gold Price ($)

Spot Gold

1 Real Price for inflation-indexed note

Correlation: -.3% STD IIN/STD Gold = .05

3-5/8% IIN of 1/15/08

Feb Mar Apr May Jun Jul

1998
30-YEAR 3-5/8% IIB AND 30-YEAR 6-1/8% FIXED-RATE NOTE

Daily Data: Beginning 4/9/98

1

August 3, 1998-10

IIB Price$

979899

1 Real Price for inflation-indexed note

Correlation: 1.9% STD IIN/STD Nominal = 0.2

3-5/8% IIB of 4/15/28

6-1/8% of 11/15/27

1998

May Jun Jul
986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 '98

NET STRIPS OUTSTANDING (1985-1998)*

End of Quarter

ry

August 3, 1998-11

*Strips program began February 15, 1985.

Reconstitution began May 1, 1987.

Inflation-indexed securities had not been stripped as of July 24, 1998.
III IV I II III IV I II III IV I II III IV I II III 

-15-10

-505

1015

.3

-4.7

-2.3

-8.9

-1.1

-6.7

-7.3 -7.6

-0.5 -2.2

5.7

2.5 1.5 3.3

13.8

15.3 15.3

7.3 Foreign Series

State and Local SeriesSavings Bonds

e estimate

e

$Bil.

RY NET BORROWING FROM NONMARKETABLE ISSUES

August 3, 1998-12

1994 1995 1996 1997 1998
05

101520

Gross Issues 25Redemptions

III IV I II III IV I II III IV I II III IV I II

-10

-505

10

STATE & LOCAL GOVERNMENT SERIES

$Bil.

$Bil.

Net SLGs

August 3, 1998-13

Note: SLGS sales were suspended from October 18, 1995 to March 29, 1996.

994 1995 1996 1997 1998
V I II III IV I II III IV I II III IV I II III IV I II III IV

02468

10

7 5.6

4.3

7.3

4.8

5.2 5.4

6.6

5.1

6.26.5

9.3

7.5

5.6

6.0

8.3

6.9

3.0

2.3

2.9

2.1

$Bil.

STATE AND LOCAL MATURITIES 1998-2003

August 3, 1998-14

1999 2000 2001 2002 2003
RTERLY CHANGES IN FOREIGN AND INTERNATIONAL

HOLDINGS OF PUBLIC DEBT SECURITIES

I III IV I II III IV I II III IV I II III IV I II

-20

0

20406080

100120

0.1

22.6

-15.1

41.5

54.1

64.2

13.8

74.4

23.6

65.8

109.5

56.6

28.7

45.3

12.4 9.7

10.3

August 3, 1998-15

ry

$Bil.

excess of foreign custody account holdings of maturing securities. Foreign add-ons prohibited

Noncompetitive awards to foreign official accounts held in custody at the Federal Reserve in

from October 18, 1995 to March 29, 1996 to avoid exceeding the debt limit.

1

1

nmarketable

rketable

Net Auction Awards to Foreign

Other Transactions

2

2 Data through May 31, 1998.

1994 1995 1996 1997 1998
988 1989 1990 1991 1992 1993 1994 1995 1996 1997 '98 

141618202224262830323436

REIGN HOLDINGS AS A PERCENT OF TOTAL

PRIVATELY HELD PUBLIC DEBT

Quarterly

ry

August 3, 1998-16

Percent
OR FOREIGN HOLDERS OF TREASURY SECURITIES

May 31, 1998 December 31, 1997 December 31, 1996

As a % of As a % of As a % of As a % of As a % of As a % of

$ Billions Total Total $ Billions Total Total $ Billions Total Total

Foreign Private Foreign Private Foreign Private

$266.9 21.3% 7.9% $277.6 22.6% 8.2% $263.3 24.2% 7.7%

om 265.7 21.2% 7.9% 251.3 20.4% 7.4% 155.0 14.3% 4.5%

96.0 7.7% 2.9% 93.9 7.6% 2.8% 75.2 6.9% 2.2%

52.0 4.2% 1.5% 52.4 4.3% 1.5% 43.5 4.0% 1.3%

na 46.4 3.7% 1.4% 47.9 3.9% 1.4% 47.2 4.3% 1.4%

45.9 3.7% 1.4% 51.7 4.2% 1.5% 44.1 4.1% 1.3%

35.2 2.8% 1.0% 35.0 2.8% 1.0% 22.6 2.1% 0.7%

34.4 2.8% 1.0% 35.2 2.9% 1.0% 39.6 3.6% 1.2%

ntilles 34.0 2.7% 1.0% 35.7 2.9% 1.1% 38.0 3.5% 1.1%

33.3 2.7% 1.0% 33.2 2.7% 1.0% 35.5 3.3% 1.0%

27.1 2.2% 0.8% 28.0 2.3% 0.8% 33.7 3.1% 1.0%

23.5 1.9% 0.7% 26.0 2.1% 0.8% 13.0 1.2% 0.4%

21.0 1.7% 0.6% 19.2 1.6% 0.6% 21.1 1.9% 0.6%

18.5 1.5% 0.6% 13.3 1.1% 0.4% 14.9 1.4% 0.4%

12.9 1.0% 0.4% 11.5 0.9% 0.3% 13.3 1.2% 0.4%

237.7 19.0% 7.1% 218.7 17.8% 6.4% 227.6 20.9% 6.7%

$1250.5 100.0% 37.2% $1230.6 100.0% 36.3% $1087.6 100.0% 31.9%

Note: RP’s are included in “other”. Detail may not add to totals due to rounding.

Source: Treasury Foreign Portfolio Investment Survey benchmark as of end-year 1994

and monthly data collected under the Treasury International Capital reportingsystem.

sury August 3, 1998-17

e
88 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

2468

10

SHORT TERM INTEREST RATES

Quarterly Averages

%

August 3, 1998-18

Federal

Funds

Prime Rate

h

 Bill

 Paper

Commercial

Through

July 29
August 3, 1998-19

SHORT TERM INTEREST RATES

Weekly Averages

%

45678

Through

July 29

Commercial

Paper Federal Funds

3 Month

Treasury Bill

Prime Rate

1997 1998

Nov Dec Jan Feb Mar Apr May Jun Jul
988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

56789

10

New Aa

Corporates

30-Year Treasury

30-Year

Municipal Bonds

LONG TERM MARKET RATES

Quarterly Averages

%

Through

July 29

y

August 3, 1998-20
3.04.05.06.07.0

INTERMEDIATE TERM INTEREST RATES

Weekly Averages

%

HLMC 30-Year

Conventional

Treasury 5-Year

10-Year InflationIndexed Note 2

12 Salomon 10-yr. AA Industrial is a Thursday rate. The first 10-year inflation-indexed note settled on February 6, 1997.

August 3, 1998-21

Treasury

10-Year

AA 10-Year Industrial 1

July 29

Through

Nov Dec Jan Feb Mar Apr May Jun Jul

1997 1998
2 3 4 5 6 7 8 9 10

5.005.205.405.60

MARKET YIELDS ON GOVERNMENTS

%

Years to Maturity

August 3, 1998

May 4, 1998

August 4, 1998-22

10 12 14 16 18 20 22 24 26 28 30

5.405.605.806.00

5.405.605.806.00

%

%
443.7

509.3

477.4

988.7

475.7

ATE HOLDINGS OF TREASURY MARKETABLE DEBT

BY MATURITY

As of December 31

August 3, 1998-23

June 30, 1994

988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Bills1 year & under1-2 years2-10 yearsOver 10 years 2,894.8 June 30, 1998
ATE HOLDINGS OF TREASURY MARKETABLE DEBT

As of December 31

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 June '98

Percent Distribution By Maturity

August 3, 1998-24

oupons Over 10 years

2-10 years

1-2 years1 year & under

Bills

16

34

1815

17
VERAGE LENGTH OF THE MARKETABLE DEBT

Privately Held

June 19475 Months10 Years

5 Months2 YearsDecember 1975

August 3, 1998-25

ry

1

1

J FMAMJ J ASOND 64

666870

Months

Excludes inflation-indexed notes; including IIN the average length was 5 years

 and 8 months as of June 30, 1998.

June 30, 1998

5 Years, 7 Months

51 55 57 59 53 61 63 65 67 69 71 79 73 75 77 81 83 85 87 89 91 93 95 97
Foreign

Investors

Total 

ing Coupons

Federal Reserve Private

Investors

June 30, 1998

MATURING COUPON ISSUES

August—December 1998

(in millions of dollars)

Held by

Totals

sury

e August 3, 1998-26

1

11,34322,41813,01921,94912,57621,48610,26813,02321,221

225

9,903

20,59812,11520,53212,44420,615

243,735

153

2,5691,2916,101

852

4,400

600

2,4994,837

0

385

4,9381,6155,8481,8395,538

43,463

9,863

17,92812,37119,60311,60320,267

9,267

12,08520,226

63

9,357

17,87711,16119,45310,76519,740

221,629

1,4804,490

648

2,346

973

1,2191,001

938995162546

2,721

954

1,0791,679

875

22,106

F.R.B. custody accounts for foreign official institutions; included in Private Investors. 1

NoteNoteNoteNoteNoteNoteNoteNoteNoteBondNoteNoteNoteNoteNoteNote

08/15/9808/15/9808/31/9808/31/9809/30/9809/30/9810/15/9810/31/9810/31/9811/15/9811/15/9811/15/9811/30/9811/30/9812/31/9812/31/98

⁄

⁄
27.8

32.0 31.9

9.3

32.3

27.3

30.6 30.5

FMAMJ J ASOND

0

29.7 29.3

9.1

29.2 28.9 29.4 28.7

9.7

26.3

29.4

27.3 28.6

9.9

27.9 30.0 26.7 27.1

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

August 3, 1998-27

1998

1999

New issues calendar year 1996 Issued or announced through July 31, 1998Securities issued prior to 1996 New issues calendar year 1997
AMJ J ASOND 

3.0 13.4

10.6

12.4 12.2

16.2

11.9

21.6

11.9 12.2 11.3

2.4

11.7 11.5

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

02468

101214161820

12.6

18.3 21.3

13.5

02468

10121416182022242628

12.3

23.7

12.6 12.8 11.6

2.9

12.0 11.9

27.3

6.5

7.3

10.2

25.9

28.0 27.2

25.3

28.5

26.0

11.2 11.0 11.5

25.0

11.7 11.9

02468

1012141618202224

12.3

15.5 16.0

20.0

J FMAMJ J ASOND 0

2468

1012141618202224

18.5

13.9

2006 20.3 20.0

$Bil

.

2005

2004

August 3, 1998-28

2000 2003

2.6 12.7

23.4

12.7 13.1 13.212.513.0 13.5 13.8

23.4

13.5 13.3

2002

2001

New issues calendar year 1996 Issued or announced through July 31, 1998Securities issued prior to 1996 New issues calendar year 1997
AMJ J ASOND 

4.1 4.2 4.8

12.2

23.5

1.1

2014

J FMAMJ J ASOND 0

2468

101214161820

9.3 9.1

20.1

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil.

August 3, 1998-29

2007

12.1

1.3

3.6

2008

3.6 3.1 2009

1.8 3.5 2010

3.5 3.9 2011

9.4 2012

11.7 2013

02468

10 11.3

6.0 6.0

2015

02468

10121416

6.4

17.8 17.6 2016

02468

10121416 16.6 2017 12.8

02468

10

8.2

8.8 2018

02468

1012141618 18.3 18.5

2020

2019

Issued or announced through July 31, 1998

Securities issued prior to 1996 New issues calendar year 1997New issues calendar year 1996
J FMAMJ J ASOND 0

2468

1012141618 16.0

9.9 10.0

AMJ J ASOND 

21.9

11.0 11.5

31.6

02468

10121416182022

10.0 10.0

20.0 2027

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil.

August 3, 1998-30

02468

101214 2024 11.0

02468

1012 10.9 11.3 2025

02468

1012 12.0 2026 9.9 10.0

2022

2021

2023

2028

Issued or announced through July 31, 1998

Securities issued prior to 1996

New issues calendar year 1996

New issues calendar year 1997