ADMINISTRATION BUDGET FORECASTS

Fiscal Year

(Billions of dollars)

Revenues

1988 1989

February Mid-Session Difference February Mid-Session Difference

909.2 913.4 4.2 964.7 974.0 9.3

Outlays 1,055.9 1,065.8 9.9 1,094.2 1,096.7 2.5

Deficit 146.7 152.3 5.6 129.5 122.7 -6.8

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-21
$Bil

60

40

20

0

TREASURY FINANCING REQUIREMENTS

April-June 1988 v

Uses

Coupon Maturities fc

Foreign

Nonmarketables

Deficit ^13/4 1/2

Increase in

Cash Balance

743/4

_L

Sources

^Coupon Refunding

|Savings Bonds

2V4 Agency Net Market

Borrowing 13/4

State and Local

1/ Includes budget deficit, changes in checks outstanding and minor

miscellaneous debt transactions.

$Bil.

60

40

20

0

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-22
$Bil.

100-

80

60

40

20

0

TREASURY FINANCING REQUIREMENTS

July-September 1988 ^

Uses

Coupon Maturities ^

State & Local

1

1/2

Foreign Nonmarketables

4 Deficit

Sources

^Coupon Refunding

Savings Bonds

2

Done 2%

Decrease in Cash Balance}E

Department of the Treasury

Office of Government Finance & Market Analysis

1/ Includes budget deficit, changes in checks, outstanding and

minor miscellaneous debt transactions.

2/ Issued or announced through July 29, 1988.

3/ Assumes a $30 billion cash balance September 30, 1988.

Net

25V4 Market _

Borrowing

$Bil.

100

80

60

40

20

0

August 2, 1968-23
TREASURY OPERATING CASH BALANCE

Semi-Monthly

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

1987 1988

Department of the Treasury

Office of Government Finance & Market Analysis

->/Assumes refunding of maturing issues.

Aug Sep

August 2, 1988-25
= o ooo o o

CO h- CO IO «fr CO CM ^

To

CMo I

O>

—O

Eo

cO
$Bil.

USE OF AUTHORITY TO ISSUE TREASURY BONDS

WITH INTEREST RATE OVER 4V4 PERCENT

250

200

150

100

50

0

$10 billion

authority

enacted

March 17, 1971

$10 billion ceiling

applied only

to private holdings

July 1, 1973

1975

Department of the Treasury

Office of Government Finance & Market Analysis

Amount

Outstanding

1977 1979 1981

As of December 31

June 30

Ceiling increased

to $270 billion

December 22, 1987

/w Privately

Held

1983 1985

250

200

150

100

50

1987

0

August 2, 1988-18
TREASURY NET BORROWING FROM NONMARKETABLE ISSUES

$Bil

30

-5

I II III IV

1984

Department of the Treasury

Office of Government Finance & Market Analysis

27.2

II III IV

1985

S Savings Bonds

^S State & Local Series

•i Foreign Nonmarketables

II III IV

1986

e estimate

II III IV

1987

$Bil.

30

25

20

- 15

.7

••• hi S2| mi ^^^^

I II

1988

10

0

-5

August 2, 1988-19
STATE AND LOCAL GOVERNMENT SERIES

1982 1983

Department of the Treasury

Office of Government Finance &Market Analysis

1984 1985 1986 1987 1988

August 2, 1988-4
STATE AND LOCAL MATURITIES 1988-1990

$Bil.

2.4

0

IV

1988

Department of the Treasury

Office of Government Finance & Market Analysis

2.0

1.6

—IT"

2.3

1989

2.1

It r

IV

**

iridlUtalwL-ii

1990

$Bil.

IV

0

August 2, 1988-17
QUARTERLY CHANGES IN FOREIGN AND INTERNATIONAL

HOLDINGS OF PUBLIC DEBT SECURITIES

$Bil

Nonmarketable

-10 -6.5

I II III IV I II III IV I II I

1984 1985 1986 1987

1/ F.R.B. purchases of marketable issues as agents for foreign and international

monetary authorities which are added to the announced amount of the issue.

2/ Preliminary. * Less than $50 million.

Department of the Treasury

Office of Government Finance & Market Analysis

-1.5

IV I Ill IV I \\2/

1988

$Bil.

-10

August 2, 1988-20
FOREIGN ADD-ONS IN TREASURY BILL AND NOTE AUCTIONS

1984 — 1988

1984

Department of the Treasury

Office of Government Finance & Market Analysis

II III IV I II III IV

1985 1986

Quarterly Totals

1988

August 2, 1988-13
$Bil.

1800

1600

1400

1200

1000

800

600

400

200

0

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT

BY MATURITY

COUPONS

I ]Over 10 years

^2-10 years

M3l-2years

1 year & under

BILLS

1977 1978 1979 1980

Department of the Treasury

Office of Government Finance & Market Analysis

1981 1982 1983 1984 1985

As of December 31

June 30,1988^1523.8

1986 1987

August 2, 1988-2
PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT

Percent Distribution by Maturity

Coupons H Over 10 years gg 1-2 years Bills

H 2-10 years ^ 1 year & under

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986

As of December 31

Department of the Treasury

Office of Government Finance & Market Analysis

1987 Jun '88

August 2, 1988-3
AVERAGE LENGTH OF THE MARKETABLE DEBT

Privately Held

1945 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-1
MARKET YIELDS ON GOVERNMENTS

Bid Yields

%

8

6

Department of the Treasury

Office of Government Finance & Market Analysis

10 12 14 16 18 20 22 24 26 28 30

4 5 6

Years to Maturity

8

6

10

August 2, 1988-26
%

20

18-

Treasury Bill

SHORT TERM INTEREST RATES

Quarterly Averages

Prime Rate

Through

July 29

Sw^...-—s'

1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

%

20

18

16

14

12

10

8

6

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-7
%

SHORT TERM INTEREST RATES

Weekly Averages

9

,111'C

Oct

Commercial Paper

Nov

1987

Dec Jan

Department of the Treasury

Office of Government Finance & Market Analysis

Prime Rate

3 Month Treasury Bill

Feb Mar Apr

1988

May Jun

,«•••••

l

Through

week ending

July 27

Jul

%

9

8

6

August 2, 1988-8
%

16

15

14

13

12

11

10

9

8

7

30-Year

Treasury

LONG TERM MARKET RATES

Quarterly Averages

/^•v

New Aa Corporates

1978 1979 1980 1981 1982 1983 1984 1985 1986

J/The 30-Year Bond Buyer Index was started September 21, 1979.

Department of the Treasury

Office of Government Finance & Market Analysis

•«.•

Through

July 29

1987 1988

%

16

15

14

13

12

11

10

9

8

7

6

August 2, 1988-5
%

10

8

INTERMEDIATE AND LONG TERM TREASURY RATES

Weekly Averages

Oct Nov Dec

1987

\

Jan Feb Mar Apr May

1988

Jun

Through

week ending

July 29

Jul

%

10

8

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-6
MATURING COUPON ISSUES

August 1988 - December 1988

(In millions of dollars)

Maturing Issues

June 30, 1988

Total

Held by

Federal Reserve

& Government

Accounts

Private

Investors

Foreign

Investors u

10 1/2% Note 8/15/88-J

9 1/2% Note 8/15/88-T

6 1/8% Note 8/31/88-AD

113/8% Note 9/30/88-N

113/8% Note 9/30/88-P^

6 3/8% Note 9 / 30 / 88 - AE

15 3/8% Note 10 / 15/88-F

6 3/8% Note 10/31 / 88-AF

8 3/4% Note 11 / 15/88-B

11 3/4% Note 11 / 15/88-K

8 5/8% Note 11 / 15/88-U

6 1/4% Note 11 / 30/88-AG

10 5/8% Note 12/31 /88-Q

6 1/4% Note 12/31 / 88-H

5,783

10,928

11,435

6,953

621

11,544

3,474

11,543

3,445

6,028

9,179

11,635

6,808

11,648

14

1,941

863

555

1,091

276

639

1,210

158

528

496

698

955

5,769

8,987

10,572

6,398

621

10,453

3,198

10,904

2,235

5,870

8,651

11,139

6,110

10,693

694

1,908

1,068

1,589

1,048

1,175

27

434

1,370

1,186

932

810

Totals 111,024 9,424 101,600 12,241

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

2J Foreign-targeted note.

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-12
TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

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

Department of the Treasury

Office of Government Finance & Market Analysis

Securities issued prior to 1986

New issues calendar year 1986

August 2, 1988-9
$Bil

22

20

18

16

14

12

10

8

6

4

2

0

24

22

20

ia

16

14

12

10

8

6

4

2

0

28

26

24

22

20

18

16

14

12

10

8

6

4

2

0

18

16

14

12

10|h5.3

4

2

0

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

15.2

I 1989

16.7 17-5 17.4 15.9 16-6

110(3310.7 % 10.9HJ10.4 % 10.6(5810.5 % mmTM m

. S till •• I

- 18.0

-1 10.0p9.6 I 16.6 18.2

1990 20.0

17.2

4.8

I^S 1 it!8-9 i mi

• !• I Hill

175

8.1

.5.1 m Vfez

• I Hi

191

1991

7.9 9.9

7.9

J 4.8

23.4

I

10.4

8.2

14.5

-6.4 I 7.2

2.9

$Bil.

22

20

18

16

14

12

10

8

6

4

2

0

10

8

6

4

2

0

12

10

8

6

4

2

0

20

18

16

14

12

10

8

6

4

2

0

12

10

8

6

4

2

0

12

10

8

6

4

-7.3 7.6

2 -

ol

8.1

9.0

6.5

7.2

6.6

12.5

5.2

9.0

18.2

I

1993

14.9

6.7

19947.2 7.0

19956.7 6.8

1 I

1996

9 6 1997

92 1998

11.8

6.9 I 7.0 7.2

8.5

19.5

i

9.4

1

J J A S O N D

|H Securites issued prior to 1986

E5J8S New issues calendar year 1986

J F M A M J J

E%4 New issues calendar year 1987

111 Issued or announced through July 29,1988

A S O N D

Department of the Treasury

Office of Government Finance & Market Analysis August 2, 1988-10
2.1

1.3

1.7

$Bil.

2

0

2

0

2

0

2

6"

4

2

0

8

6

4

2

0

10

8

6

4

2

0

4

2

0

2

0

4

2

0

4

2

0

4

2

0

4

2

0

10

8

6

4

2

0'

_ 2.9

4.8

2

.2.7

1.7

TREASURY MARKETABLE MATURITIES

1.0— 1999

2000 .2.5

1.6- 2001 = 2.3

2002

3.2 2003 3.4

3.6 2004 4040

6.3 2005

2006

2007

2008

3j8 2009 • i

1.8 2010

3.7 2011

2012

9.0

I

1.4

Privately Held, Excluding Bills

• $Bi

14

12

10

8

6

4

2

0

TT

.2.6

|7.1

8.3

I

1.2

3.6

3.3

3.8

4.2

10.1

I

6

4

2

0

14

12

10

8

6

4

2

&

20

18

16

14

12

10

8

6

4

2

0

18

16

14

12

10

8

6

4

2

0

14

12

10

8

6

4

2

0

11.8

I

7.0

2013 1"

I

46 2014 46

17.9

18.0

I

85

n

2015

6.5

2016

2017 13.8

1

2018

5.2

6.7

18.5

|

JFMAMJJASOND

•• Securities issued prior to 1986 £

K3 New issues calendar year 1986 I

Department of the Treasury

Office of Government Finance & Market Analysis

JFMAMJJ ASON D

INew issues calendar year 1987

| Issued or announced through July 29, 1988

August 2, 1988-11
SCHEDULE OF ISSUES TO BE ANNOUNCED

AND AUCTIONED IN AUGUST-1988^

Monday Tuesday Wednesday Thursday Friday

1 2 3 4 5

8

Auction

3 year-2/

Auction

10 year-2i

11 Auction

Cash

Management^

12

15 16 17 Announce

2 year

5 year

18 '9 Announce

52 week

22 23

Auction

2 year 2/

24

Auction

5 year^/

25 Auction

52 week 5/

26

29 30 31

Department of the Treasury

Office of Government Finance & Market Analysis

XI Does not include weekly bills

_2j For settlement August 15

.3/ For settlement August 31

AJ For settlement in early September

_5J For settlement September 1

August 2, 198814a
SCHEDULE OF ISSUES TO BE ANNOUNCED

AND AUCTIONED IN SEPTEMBER 1988^

Monday Tuesday Wednesday Thursday Friday

1 2

5

Holiday

6 7 8 9

12 13 14 15 Announce

52 week

19 20 21 Announce

2 year

4 year

22

Auction

52 week!/

23

26 27

Auction

2 year-3/

98

Auction

4 year.3/

29 30

Department of the Treasury

Office of Government Finance & Market Analysis

1/ Does not include weekly bills

2/ For settlement September 29

3/ For settlement September 30 August 2, 1988-15
SCHEDULE OF ISSUES TO BE ANNOUNCED

AND AUCTIONED IN OCTOBER 1988^

Monday Tuesday Wednesday Thursday Friday

3 4 5

Announce

7 year

6 7

10

Holiday

11 12 * . Auction

7 year-2/

13 14 Announce

52 week

17 18 19 Announce A

2 year

20 A . Auction

52 week3^

21

24 25 9fi

Auction

2 year 4/

27 28

31

Department of the Treasury

Office of Government Finance & Market Analysis

jy Does not include weekly bills

_2/ For settlement October 17

_3J For settlement October 27

J/ For settlement October 31

August 2, 1988-16