U.S. Treasury Borrowing

THE

DEPARTMENT OF THE TREA

SURY

1789
0

50

100

150

0

50

100

150

Increase in Cash

Balance

Market Paydown

Surplus

State and Local

31

113

140

5

TREASURY FINANCING REQUIREMENTS

April - June 1999

Department of the Treasury

Office of Market Finance August 2, 1999-1

1

Uses Sources 145

1 Includes budget results, direct loan activity, changes in accrued interest

and checks outstanding and minor miscellaneous debt transactions.

4

3

4

1

4

1

2

1
0

5

10

15

0

5

10

15

Decrease in Cash

Balance

Market Paydown

Surplus

State and Local

11

2

8

TREASURY FINANCING REQUIREMENTS

July — September 1999

Department of the Treasury

Office of Market Finance August 2, 1999-2

1

Uses 13 Sources

2

1

5

2

1

2

 Includes budget results, direct loan activity, changes in accrued interest

and checks outstanding and minor miscellaneous debt transactions.

 Assumes a $45 billion cash balance, September 30, 1999.

4

3

4

3

4

1
 (Billions of Dollars)

NET MARKET BORROWING

July – September 1999

Department of Treasury

Office of Market Finance August 2, 1999-3

* Issued or announced through July 30, 1999.

Total -11.2

Done* -27.0

Bills

Regular weekly 7.0

52 week -0.4

Coupons

7 year note -10.0

2 year note 2.1

5 year note -33.1

9 year 6 month inflation-indexed note 7.4

To Be Done 15.8
-20

-10

0

10

20

30

40

50

60

70

80

TREASURY OPERATING CASH BALANCE

$Bil. Daily

Department of the Treasury

Office of Market Finance August 2, 1999-4

1

Without

New

Borrowing

1 Data points are semi-monthly.

Federal Reserve Account

Tax and Loan

Accounts Balance

Total Operating

Balance

1998 1999

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
I II III IV I II III IV I II III IV I II III IV I II III IV I II -140

-120

-100

-80

-60

-40

-20

0

20

40

60

80

-140

-120

-100

-80

-60

-40

-20

0

20

40

60

80

53.4

8.1

40.6

61.2

74.5

25.3

25.7

48.1

77.2

-25.7

40.3

41.3

44.6

-71.5

6.5

17.0

10.3

-97.9

-38.8

24.0

5.8

-113.8

TREASURY NET MARKET BORROWING

$Bil.

Department of the Treasury

Office of Market Finance

$Bil.

1

August 2,1999-5

1 Excludes Federal Reserve and Government Account Transactions.

1994 1998 1999 1995 1996 1997

Coupons

Over 10 yrs

5 - 10 yrs

2 - under 5 yrs

Bills
DISTRIBUTION OF COMPETITIVE AUCTION AWARDS OF

TREASURY NOTES

August 2, 1999-6

Department of the Treasury

Office of Market Finance

Primary Dealers

Foreign &

International

Financial Insts.

Investment

Funds

Pension Funds

Other

10-Year Fixed Rate

November 1998, &

February & May 1999 Auctions

82%

9%

7%

36% 45%

2%

5%

9%

10-Year Inflation-Indexed

October 1998, &

January & July 1999 Auctions

3%

1%

*Less than 0.5 percent.

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

Financial insts. include nonprimary dealers, depository insts., and insurance cos.

Other includes individuals, nonfinancial cos., and other financial cos.

1%
DISTRIBUTION OF COMPETITIVE AUCTION AWARDS OF

TREASURY BONDS

August 2, 1999-7

Department of the Treasury

Office of Market Finance

Primary Dealers

Foreign &

International

Financial Insts.

Investment

Funds

Pension Funds

Other

30-Year Fixed Rate

August & November 1998

& February 1999 Auctions

61%

17%

19%

44%

29%

1%

12%

13%

30-Year Inflation-Indexed

April & July 1998

& April 1999 Auctions

*

1%

1% 2%

*Less than 0.5 percent.

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

Financial insts. include nonprimary dealers, depository insts., and insurance cos.

Other includes individuals, nonfinancial cos., and other financial cos.
Department of the Treasury

Office of Market Finance August 2, 1999-8

1 Real Price for inflation-indexed note

Correlation: 76.6% STD IIN/STD Nominal = 0.20

90

91

92

93

94

95

96

97

98

99

100

101

102

90

91

92

93

94

95

96

97

98

99

100

101

Price $ Price $ 102

1999

3-7/8% IIN of 1/15/09

4-3/4% of 11/15/08

Jan Feb Mar Apr May Jun Jul

PRICES FOR 10-YEAR 3-7/8% IIN AND 10-YEAR 4-3/4% FIXED-RATE NOTE

Daily Data: 1/4/99 through 7/30/99

1
Department of the Treasury

Office of Market Finance August 2, 1999-9

87

89

91

93

95

97

99

101

87

89

91

93

95

97

99

101

1 Real Price for inflation-indexed note

Correlation: 63.1% STD IIN/STD Nominal = 0.32

Price $ Price $

1999 Apr May Jun Jul

3-7/8% IIB of 4/15/29

5-1/4% of 02/15/29

PRICES FOR 30-YEAR 3-7/8% IIB AND 30-YEAR 5-1/4% FIXED-RATE BOND

Daily Data: 4/9/99 through 7/30/99

1
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 '99 0

50

100

150

200

NET STRIPS OUTSTANDING (1985-1999)* $Bil.

End of Quarter

Department of the Treasury

Office of Market Finance August 2, 1999-11

*Strips program began February 15, 1985.

Reconstitution began May 1, 1987.

Inflation-indexed securities had not been stripped as of July 23, 1999.
I II III IV I II III IV I II III IV I II III IV I II III

-15

-10

-5

0

5

10

15

-15

-10

-5

0

5

10

15

-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

8.4

0.8 1.3

2.4

-3.0

Foreign Series

State and Local Series

Savings Bonds

e estimate

$Bil. $Bil.

TREASURY NET BORROWING FROM NONMARKETABLE ISSUES

August 2, 1999-12

Department of the Treasury

Office of Market Finance

e

1995 1996 1997 1998 1999
0

5

10

15

20

25

0

5

10

15

20

Gross Issues 25

Redemptions

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

-10

-5

0

5

10

-10

-5

0

5

10

STATE & LOCAL GOVERNMENT SERIES

$Bil.

$Bil.

$Bil.

$Bil.

Net SLGs

Department of the Treasury

Office of Market Finance August 2, 1999-13

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

1995 1996 1997 1998 1999
III IV I II III IV I II III IV I II III IV I II III IV I II III IV

0

2

4

6

8

10

12

0

2

4

6

8

10

12

12.2

6.6

6.16.2

7.5

6.0

7.2

7.3

11.1

8.8

7.4

7.1

10.5

9.1

4.4

3.4

4.2

3.2

4.0

4.3

5.1

4.6

$Bil. $Bil.

STATE AND LOCAL MATURITIES 1999-2004

Department of the Treasury

Office of Market Finance August 2, 1999-14

1999 2000 2001 2002 2003 2004
QUARTERLY CHANGES IN FOREIGN AND INTERNATIONAL

HOLDINGS OF PUBLIC DEBT SECURITIES

I II III IV I II III IV I II III IV I II III IV I II -40

-20

0

20

40

60

80

100

-40

-20

0

20

40

60

80

100

36.6

55.5

57.9

14.9

72.9

21.6

63.7

108.9

55.5

25.1

47.8

11.1 8.9 5.5

-34.1

51.4

-2.5

-13.3

August 2, 1999-15

Department of the Treasury

Office of Market Finance

$Bil. $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

2

2 Data through May 31, 1999.

1

Marketable

Net Auction Awards to Foreign

Other Transactions

1995 1996 1997 1998 1999

Nonmarketable
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 '99 14

16

18

20

22

24

26

28

30

32

34

36

38

14

16

18

20

22

24

26

28

30

32

34

36

38

FOREIGN HOLDINGS AS A PERCENT OF TOTAL

PRIVATELY HELD PUBLIC DEBT

Quarterly

Department of the Treasury

Office of Market Finance August 2, 1999-16

Percent Percent
MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES

May 31, 1999 December 31, 1998 December 31, 1997

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

Country Foreign Private Foreign Private Foreign Private

Japan $286.5 22.8% 8.9% $276.1 21.6% 8.3% $277.6 22.4% 8.2%

United Kingdom 248.9 19.8% 7.7% 261.7 20.5% 7.8% 251.3 20.2% 7.4%

Germany 93.3 7.4% 2.9% 95.1 7.5% 2.9% 93.9 7.6% 2.8%

OPEC 47.9 3.8% 1.5% 42.9 3.4% 1.3% 58.4 4.7% 1.7%

Mainland China 47.3 3.8% 1.5% 46.4 3.6% 1.4% 47.9 3.9% 1.4%

Hong Kong 45.5 3.6% 1.4% 44.2 3.5% 1.3% 35.0 2.8% 1.0%

Mexico 37.8 3.0% 1.2% 37.4 2.9% 1.1% 35.9 2.9% 1.1%

France 32.4 2.6% 1.0% 30.0 2.4% 0.9% 13.3 1.1% 0.4%

Belgium-Luxemburg 31.1 2.5% 1.0% 31.5 2.5% 0.9% 26.0 2.1% 0.8%

Taiwan 30.7 2.4% 1.0% 31.3 2.5% 0.9% 33.2 2.7% 1.0%

Singapore 30.4 2.4% 0.9% 43.1 3.4% 1.3% 35.2 2.8% 1.0%

Spain 29.2 2.3% 0.9% 41.2 3.2% 1.2% 51.7 4.2% 1.5%

Switzerland 26.6 2.1% 0.8% 33.7 2.6% 1.0% 28.0 2.3% 0.8%

Netherland Antilles 20.4 1.6% 0.6% 21.7 1.7% 0.7% 35.7 2.9% 1.1%

Canada 15.2 1.2% 0.5% 12.4 1.0% 0.4% 11.5 0.9% 0.3%

Other 234.3 18.6% 7.3% 227.7 17.8% 6.8% 207.0 16.7% 6.1%

Estimated

Foreign Total $1,257.5 100.0% 39.0% $1,276.4 100.0% 38.3% $1,241.6 100.0% 36.6%

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

and monthly data collected under the Treasury International Capital reporting

system.

Department of the Treasury August 2, 1999-17

Office of Market Finance
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

2

4

6

8

10

2

4

6

8

10

SHORT TERM INTEREST RATES

Quarterly Averages

% %

Department of the Treasury

Office of Market Finance August 2, 1999-18

Federal

Funds

Prime Rate

3 Month

Treasury Bill Paper

Commercial

Through

July 28
Department of the Treasury

Office of Market Finance August 2, 1999-19

SHORT TERM INTEREST RATES

Weekly Averages

% %

3

4

5

6

7

8

3

4

5

6

7

8

Through

July 28

Federal Funds

Prime Rate

Commercial

Paper

3 Month

Treasury Bill

Oct Nov Dec Jan Feb Mar Apr May Jun Jul

1998 1999
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

4

5

6

7

8

9

10

4

5

6

7

8

9

10

New Aa

Corporates

30-Year Treasury

30-Year

Municipal Bonds

LONG TERM MARKET RATES

Quarterly Averages

% %

Through

July 28

Department of the Treasury

Office of Market Finance August 2, 1999-20
3

4

5

6

7

3

4

5

6

7

INTERMEDIATE TERM INTEREST RATES

Weekly Averages

% %

Department of the Treasury

Office of Market Finance

Treasury 5-Year

1

2

 Salomon 10-yr. AA Industrial is a Thursday rate.

The first 10-year inflation-indexed note settled on February 6, 1997.

August 2, 1999-21

July 28

Through

1 AA 10-Year Industrial

Treasury

10-Year

2

10-Year InflationIndexed Note

FHLMC 30-Year

Conventional

Oct Nov Dec Jan Feb Mar Apr May Jun Jul

1998 1999
0 1 2 3 4 5 6 7 8 9 10

4.5

5.0

5.5

6.0

4.5

5.0

5.5

6.0

MARKET YIELDS ON GOVERNMENTS

% %

Years to Maturity

May 3, 1999

August 3, 1999-22 Department of the Treasury

Office of Market Finance

10 12 14 16 18 20 22 24 26 28 30

5.0

5.5

6.0

5.0

5.5

6.0

% %

August 2, 1999
449.7

471.3

445.9

913.6

467.2

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT

BY MATURITY

As of December 31

August 2, 1999-23

Department of the Treasury

Office of Market Finance

$Bil.

June 30, 1994

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

0

500

1,000

1,500

2,000

2,500

3,000

Bills

1 year & under

1-2 years

2-10 years

Over 10 years

2,747.7

June 30, 1999
PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT

As of December 31

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Jun '99

100%

Percent Distribution By Maturity

Department of the Treasury

Office of Market Finance August 2, 1999-24

Coupons Over 10 years

2-10 years

1-2 years

1 year & under

Bills

17

33

17

17

16

80

60

40

20

0
AVERAGE LENGTH OF THE MARKETABLE DEBT

Privately Held

Years

June 1947

5 Months

10 Years

5 Months

2 Years

December 1975

August 2, 1999-25

Department of the Treasury

Office of Market Finance

10

9

8

7

6

5

4

3

2

1

J FMAMJ J ASOND 64

66

68

70

Months

June 30, 1999

5 Years, 8 Months

1945 49 51 53 55 57 59 67 69 73 61 63 65 71 79 75 77 81 83 85 87 89 91 93 95 97 99

1 Excludes inflation-indexed securities; including IIS the average length was 5 years

 and 11 months as of June 30, 1999.
Foreign

Investors

Total Maturing Coupons

Federal Reserve Private

Investors

June 30, 1999

MATURING COUPON ISSUES

August — December 1999

(in millions of dollars)

Held by

Totals

Department of the Treasury

Office of Market Finance August 2, 1999-26

1

10,164

22,708

12,397

17,215

12,836

17,487

10,337

12,152

16,824

10,774

22,870

11,934

17,051

12,523

16,747

224,019

0

5,005

839

2,457

1,437

2,932

847

2,072

4,424

174

4,873

1,312

3,717

1,651

1,909

33,647

9,220

19,822

10,926

15,480

11,414

16,795

9,856

10,589

15,877

9,502

19,847

10,452

15,870

11,143

15,951

202,744

994

2,886

1,471

1,735

1,422

692

481

1,563

947

1,272

3,023

1,482

1,181

1,380

796

21,275

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

8 %

6 %

6 7/8%

5 7/8%

7 1/8%

5 3/4%

6 %

7 1/2%

5 5/8%

7 7/8%

5 7/8%

7 3/4%

5 5/8%

7 3/4%

5 5/8%

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

Note

08/15/99

08/15/99

08/31/99

08/31/99

09/30/99

09/30/99

10/15/99

10/31/99

10/31/99

11/15/99

11/15/99

11/30/99

11/30/99

12/31/99

12/31/99

⁄

⁄
29.0

26.4

28.2

9.9

26.5

29.3

26.3 27.1

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills 

August 2, 1999-27

1999

2000

Securities issued prior to 1997

MAMJ J ASOND

7.2 27.0

10.1

24.6

30.0

25.8 25.3 27.7 25.3 27.9 28.0 29.2 24.4 28.8 28.9

New issues calendar year 1997 Issued or announced through July 30, 1999

New issues calendar year 1998
0

2

4

6

8

10

12

14

16

18

20

22

18.1 17.5

19.8 19.5

3.9

J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

12.0

23.5

11.9 12.7

10.9

2.8

11.9 11.8

45.6

27.0

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

28.1

35.4

15.9

22.9

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

29.0

25.2

28.6

30.8 30.4

22.9

29.2 29.5 29.7

12.2 12.8 13.1 13.7

22.5

13.3 12.9

0

2

4

6

8

10

12

14

16

18

20

22

14.0

18.1

21.1

16.7

J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

18

20

22

15.5

12.1 12.1

22.3

9.4

2007

$Bil. $Bil.

2006

2005

Department of the Treasury

Office of Market Finance August 2, 1999-28

2001 2004

0

2

4

6

8

10

12

14

16

18

20

22

24

12.3

4.3

12.4 12.7 12.7

10.2

11.9 12.0

16.5

11.4

20.7

11.7 12.1 10.9

3.5

10.8 11.2

2003

2002

New issues calendar year 1997 Issued or announced through July 30, 1999

Securities issued prior to 1997 New issues calendar year 1998
J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

6.3

17.7 17.5

0

2

4

6

8

10

12

14

16

18

20

22

16.0

12.2

23.1

11.7

22.6

J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

10.3 10.7 10.9

30.4

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil. $Bil.

Department of the Treasury

Office of Market Finance August 2, 1999-29

2008

0

2

4

6

8

10

12

14

16

18

20

22

24

8.2

16.9

4.2 4.8

2009

0

2 2010

0

2 2011

0

2 2012

0

2 2013

0

2 2014

0

2

4

6

8

10

12

14

15.8 2017 12.2

0

2

4

6

8 7.7 8.6

2018

0

2

4

6

8

10

12

14

16

18 17.6 18.4 2019

0

2

4

6

8

10

12

14

16

18

8.9 8.8

20.0

2021

2020

2016

0

2

4

6

8

10 11.3 2015 6.0 6.0

New issues calendar year 1997 Issued or announced through July 30, 1999

Securities issued prior to 1997 New issues calendar year 1998
J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

18

20

22

24

10.0

7.1

0

2

4

6

8

10

12

14

16

18

20

22

24

26

16.2

21.4

J FMAMJ J ASOND

0

2

4

6

8

10

12

14

16

18

20

10.8 11.0

0

2

4

6

8

10

12

14

16

18

20

22

9.5 9.5

0

2

4

6

8

10

12

14

16

18

20

22

24

16.4

10.0 10.0

2028

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil. $Bil.

Department of the Treasury

Office of Market Finance August 2, 1999-30

0

2

4

6

8

10

12

14

16

11.9

9.6 10.0

2026

0

2

4

6

8

10

12

14

16

18

20

22

24

26

9.8 9.6

19.8

2027

2023

2022

2025

2029 0

2

4

6

8

10

12

14

16

18

20

10.4

2024

Issued or announced through July 30, 1999

Securities issued prior to 1997

New issues calendar year 1997

New issues calendar year 1998