S. Treasury Borrowing
July - September 1998

Uses 173

TREASURY FINANCING REQUIREMENTS

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

October 26, 1998-1

050100150

Sources

$Bil.

pon Maturities

State and Local

Coupon Refunding

Decrease in

Cash Balance

1

9

38

33

131

3

4

Market Paydown

131

2

1

3 4

4

1
October - December 1998

Uses 183

TREASURY FINANCING REQUIREMENTS

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

October 26, 1998-2

050100150200

Sources

$Bil.

oupon Maturities

State and

Local

Coupon Refunding

Decrease in

Cash Balance

Cash Deficit

1

30

1

129

1

24

Assumes a $15 billion cash balance, December 31, 1998. 2

2

4 129 1

2

1

4

1

Net Market Borrowing

1

4
TREASURY OPERATING CASH BALANCE

Daily

Total Operating

Balance

sury

e October 26, 1998-3

1

Without

New

Borrowin

g

Tax and Loan

Accounts Balance

Federal Reserve Account

1 Data points are semi-monthly.

997 1998

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

-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

-38.8

TREASURY NET MARKET BORROWING

$Bil.

1

to be

done

October 26,1998-4

Issued or announced through October 23, 1998.

Excludes Federal Reserve and Government Account Transactions. 1

Coupons

Bills

Over 10 yrs

5 - 10 yrs

2 - under 5 yrs

2

2

1994 1998 1995 1996 1997

30
 (Billions of Dollars)

NET MARKET BORROWING

October – December 1998

October 26, 1998-5

Issued or announced through October 23, 1998. 1

Total 30.0Done -26.0

Bills

Regular weekly 15.852 week -2.1 Total 13.7

Coupons

7-year note -10.32-year note -3.95-year notes — end of month -33.99 year 3 month reopening of 8.4

inflation-indexed note

-39.7

To Be Done 56.0

1
STRIBUTION OF COMPETITIVE AUCTION AWARDS OF

TREASURY NOTES

October 26, 1998-6

y

Primary DealersForeign &InternationalFinancial Insts.InvestmentFundsPension FundsOther

10-Year Fixed Rate

February, May &

August 1998 Auctions

*

68%

16%

16%

52%

%

*

nflation-Indexed

April 1997,

ctober 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

October 26, 1998-7

ry

Primary DealersForeign &InternationalFinancial Insts.InvestmentFundsPension FundsOther

30-Year Fixed Rate

February & August 1998 Auctions

61%

8%

43% 31%

%

*

11%

nflation-Indexed

uly 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.

*

*
y

October 26, 1998-8

Price$

1 Real Price for inflation-indexed note

Correlation: 63% STD IIN/STD Nominal = 0.17

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

Daily Data: Beginning 2/12/98

1

1998

979899

100101102103104105106107108109

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

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

Apr Mar May Jun Jul Aug Sep Oct
R 30-YEAR 3-5/8% IIB AND 30-YEAR 6-1/8% FIXED-RATE BOND

Daily Data: Beginning 4/9/98

1

October 26, 1998-9

Price$

9799

101103105107109111113115117

1 Real Price for inflation-indexed note

Correlation: 13% STD IIN/STD Nominal = 0.16

1998

May Jun Jul Aug Sep Oct

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

3-5/8% IIB of 4/15/28
270280290300310320

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

Daily Data: Beginning 1/15/98

October 26, 1998-10

Gold Price ($)

Spot Gold

1 Real Price for inflation-indexed note

Correlation: 16% STD IIN/STD Gold = .07

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

1998

b Mar Apr May Jun Jul Aug Sep Oct
986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

NET STRIPS OUTSTANDING (1985-1998)*

End of Quarter

ry

October 26, 1998-11

*Strips program began February 15, 1985.

Reconstitution began May 1, 1987.

Inflation-indexed securities had not been stripped as of October 16, 1998.
III IV I II III IV I II III IV I II III IV I II III IV 

-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

8.4

-3.4

Foreign SeriesState and Local SeriesSavings Bonds

e estimate

e

$Bil.

RY NET BORROWING FROM NONMARKETABLE ISSUES

October 26, 1998-12

994 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 III

-10

-505

10

STATE & LOCAL GOVERNMENT SERIES

$Bil.

$Bil.

Net SLGs

October 26, 1998-13

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

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

02468

10

6.4

4.5

7.9

5.3

5.6 5.6

7.1

5.5

6.3

6.7

10.2

7.9

6.3 6.3

9.2

7.7

3.4

2.5

3.5

2.5

$Bil.

STATE AND LOCAL MATURITIES 1998-2003

October 26, 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 III

-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

8.4

-25.0

October 26, 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

2

2 Data through August 31, 1998.

1

arketable

etable

t Auction Awards to Foreign

her Transactions

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

141618202224262830323436

REIGN HOLDINGS AS A PERCENT OF TOTAL

PRIVATELY HELD PUBLIC DEBT

Quarterly

ry

October 26, 1998-16

Percent
OR FOREIGN HOLDERS OF TREASURY SECURITIES

August 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

om $267.5 21.9% 8.0% $251.3 20.4% 7.4% $155.0 14.3% 4.5%

265.9 21.7% 7.9% 277.6 22.6% 8.2% 263.3 24.2% 7.7%

95.1 7.8% 2.8% 93.9 7.6% 2.8% 75.2 6.9% 2.2%

44.1 3.6% 1.3% 51.7 4.2% 1.5% 44.1 4.1% 1.3%

na 43.2 3.5% 1.3% 47.9 3.9% 1.4% 47.2 4.3% 1.4%

42.6 3.5% 1.3% 52.4 4.3% 1.5% 43.5 4.0% 1.3%

39.7 3.2% 1.2% 35.0 2.8% 1.0% 22.6 2.1% 0.7%

37.3 3.0% 1.1% 35.2 2.9% 1.0% 39.6 3.6% 1.2%

30.4 2.5% 0.9% 33.2 2.7% 1.0% 35.5 3.3% 1.0%

24.5 2.0% 0.7% 28.0 2.3% 0.8% 33.7 3.1% 1.0%

24.4 2.0% 0.7% 13.3 1.1% 0.4% 14.9 1.4% 0.4%

ntilles 21.9 1.8% 0.7% 35.7 2.9% 1.1% 38.0 3.5% 1.1%

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

20.9 1.7% 0.6% 26.0 2.1% 0.8% 13.0 1.2% 0.4%

10.3 0.8% 0.3% 11.5 0.9% 0.3% 13.3 1.2% 0.4%

234.9 19.2% 7.0% 218.7 17.8% 6.4% 227.6 20.9% 6.7%

$1223.7 100.0% 36.5% $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 October 26, 1998-17

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

2468

10

SHORT TERM INTEREST RATES

Quarterly Averages

%

October 26, 1998-18

Federal

Funds

Prime Rate

h

 Bill

 Paper

Commercial

Through

October 21
October 26, 1998-19

SHORT TERM INTEREST RATES

Weekly Averages

%

345678

Through

Commercial October 21

Paper

Federal Funds

3 Month

Treasury Bill

Prime Rate

1998

Feb Mar Apr May Jun Jul Aug Sep Oct
988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

456789

10

New Aa

Corporates

30-Year Treasury

30-Year

Municipal Bonds

LONG TERM MARKET RATES

Quarterly Averages

%

Through

October 21

y

October 26, 1998-20
34567

INTERMEDIATE TERM INTEREST RATES

Weekly Averages

%

FHLMC 30-Year

Conventional

ry 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.

October 26, 1998-21

AA 10-Year Industrial 1

October 21

Through

1998

Feb Mar Apr May Jun Jul Aug Sep Oct

Treasury 10-Year
2 3 4 5 6 7 8 9 10

3.003.504.004.505.005.50

MARKET YIELDS ON GOVERNMENTS

%

Years to Maturity

October 26, 1998

October 27, 1998-22

10 12 14 16 18 20 22 24 26 28 30

4.505.005.50

4.505.005.50

%

%

August 3, 1998
441.8

498.8

466.4

958.1

491.5

ATE HOLDINGS OF TREASURY MARKETABLE DEBT

BY MATURITY

As of December 31

October 26, 1998-23

June 30, 1994

88 1989 1990 1991 1992 1993 1994 1995 1996 1997

Bills1 year & under1-2 years2-10 yearsOver 10 years

2,856.6

September 30, 1998
ATE HOLDINGS OF TREASURY MARKETABLE DEBT

As of December 31

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

Percent Distribution By Maturity

October 26, 1998-24

oupons Over 10 years

2-10 years

1-2 years1 year & under

Bills

17

34

1815

16
VERAGE LENGTH OF THE MARKETABLE DEBT

Privately Held

June 19475 Months10 Years

5 Months2 YearsDecember 1975

October 26, 1998-25

ry

1

J FMAMJ J ASOND 64

666870

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

September 30, 1998

5 Years, 8 Months

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

 and 9 months as of September 30, 1998.
Foreign

Investors

Total 

ing Coupons

Federal Reserve Private

Investors

September 30, 1998

MATURING COUPON ISSUES

November 1998 — March 1999

(in millions of dollars)

Held by

Totals

sury

e October 26, 1998-26

1

225

9,903

20,59812,11520,53212,44420,61510,55919,46812,900

9,720

21,99711,91419,91612,78019,798

235,484

01

2,762

677

4,602

508

5,758

600

2,9012,770

55

5,5111,5714,1281,2274,714

37,782

63

9,057

17,87711,16119,45310,76519,540

9,667

17,75612,089

8,671

18,35311,02418,43510,90518,378

213,194

162846

2,721

954

1,0791,6791,075

892

1,712

811

1,0493,644

890

1,4811,8751,420

22,290

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

BondNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNote

11/15/9811/15/9811/15/9811/30/9811/30/9812/31/9812/31/9801/15/9901/31/9901/31/9902/15/9902/15/9902/28/9902/28/9903/31/9903/31/99

⁄

⁄

2

2 Includes $132 million held in Government account trust funds.
27.0

30.6 30.5

FMAMJ J ASOND

7.0

29.5 29.3

9.1

29.128.929.1 28.5

9.7

26.3

29.327.3 28.3

9.9

27.1

30.0

26.7 27.1

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

October 26, 1998-27

1998

1999

New issues calendar year 1996 Issued or announced through October 23, 1998Securities issued prior to 1996 New issues calendar year 1997
AMJ J ASOND 

3.0 13.2

10.4

12.4 12.2

16.2

11.8

21.4

11.9 12.2 11.0

2.4

11.6 11.5

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

02468

10121416182022

12.5

18.3

21.3

13.5

02468

1012141618202224262830323436384042

12.3

23.7

12.6 12.8 11.6

2.9

12.0 11.9

44.3

6.4

27.0

10.2

25.3

28.027.2

25.3

28.5

26.0

28.2 28.0 27.5

25.0

11.5 11.9

02468

10121416182022

12.3

15.5 16.0

20.0

J FMAMJ J ASOND 0

2468

10121416182022

18.4

13.9

20.1 19.9 2006

$Bil.

2005

2004

October 26, 1998-28

2000 2003

2.6 12.6

23.2

12.7 13.1 13.2 12.5 13.0 13.4 13.7

23.1

13.3 13.2

2002

2001

New issues calendar year 1996 Issued or announced through October 23, 1998Securities issued prior to 1996 New issues calendar year 1997
AMJ J ASOND 

4.1

4.2 4.8

12.2

23.4

1.1

2014

J FMAMJ J ASOND 0

2468

10121416182022

9.2 9.1

20.1

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil.

October 26, 1998-29

2007

23.1

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

1012141618

6.4

17.8 17.5

02468

1012141618 16.6 2017 12.7

02468

10 8.1 8.8 2018

02468

1012141618

18.2 18.5

2020

2019

Issued or announced through October 23, 1998

Securities issued prior to 1996 New issues calendar year 1997New issues calendar year 1996

2016
J FMAMJ J ASOND 0

2468

101214161820

16.2

10.0

9.8 9.9

AMJ J ASOND 

21.6

11.0 11.4

31.3

02468

1012141618202224

10.0 10.0

2027 20.0

TREASURY MARKETABLE MATURITIES

Privately Held, Excluding Bills

$Bil.

October 26, 1998-30

02468

101214 10.9 2024

02468

101214 10.9 2025 11.3

02468

101214 12.0 2026 9.9 10.0

2022

2021

2023

2028

Issued or announced through October 23, 1998

Securities issued prior to 1996

New issues calendar year 1996

New issues calendar year 1997
1998 SINGLE-PRICE AUCTION STUDY UPDATE

CENTRATIONS OF LARGE COMPETITIVE AWARDS

2-YEAR AND 5-YEAR NOTES

October 26, 1998-31a

Top 5 Bidders2nd 5 BiddersRemainder

Uniform-price Period

September 1992 — May 1998

39%

20%

41%

55%

price Period

 — August 1992

Note: Large competitive awards are based on bids greater than or equal to $1 million accepted

through New York, Chicago, and San Francisco Federal Reserve Banks and branches.
998 SINGLE-PRICE AUCTION STUDY UPDATE

CENTRATIONS OF LARGE COMPETITIVE AWARDS

3-YEAR AND 10-YEAR NOTES

October 26, 1998-31b

Top 5 Bidders2nd 5 BiddersRemainder

September 1992 — May 1998

53%

18%

29%

55%

 — August 1992

Note: Large competitive awards are based on bids greater than or equal to $1 million accepted

through New York, Chicago, and San Francisco Federal Reserve Banks and branches.
-3.0-2.0-1.00.01.02.03.04.05.06.0

998 SINGLE-PRICE AUCTION STUDY UPDATE

2-YEAR NOTE AUCTION SPREADS

AUCTION RESULTS — 1 PM WI BID YIELDS

October 26, 1998-31c

Basis Points

1992 1993 1994 1995 1996 1997 1998

Auction Date

6/91 — 8/92 9/92 — 5/98

Average 0.41 b.p. 0.20 b.p.Std. Error 0.13 b.p. 0.15 b.p.

Averages and Std. Errors of Spreads

Between Auction Yields & 1 pm WI Bid Yields

PX, Inc.

June 1991 - May 1998
998 SINGLE-PRICE AUCTION STUDY UPDATE

5-YEAR NOTE AUCTION SPREADS

AUCTION RESULTS — 1 PM WI BID YIELDS

-3.0-2.0-1.00.01.02.03.04.05.06.0

October 26, 1998-31d

Basis Points

1992 1993 1994 1995 1996 1997 1998

Auction Date

6/91 — 8/92 9/92 — 5/98

Average 0.33 b.p. 0.22 b.p.Std. Error 0.06 b.p. 0.21 b.p.

Averages and Std. Errors of Spreads

Between Auction Yields & 1 pm WI Bid Yields

X, Inc.

June 1991 - May 1998
98 SINGLE-PRICE AUCTION STUDY UPDATE

3-YEAR NOTE AUCTION SPREADS

AUCTION RESULTS — 1 PM WI BID YIELDS

-3.0-2.0-1.00.01.02.03.04.05.06.0

October 26, 1998-31e

Basis Points

1992 1993 1994 1995 1996 1997 1998

Auction Date

6/91 — 8/92 9/92 — 5/98

Average 0.50 b.p. 0.49 b.p.Std. Error 0.22 b.p. 0.09 b.p.

Averages and Std. Errors of Spreads

Between Auction Yields & 1 pm WI Bid Yields

X, Inc.

June 1991 - May 1998
98 SINGLE-PRICE AUCTION STUDY UPDATE

10-YEAR NOTE AUCTION SPREADS

AUCTION RESULTS — 1 PM WI BID YIELDS

-3.0-2.0-1.00.01.02.03.04.05.06.0

October 26, 1998-31f

Basis Points

Auction Date

6/91 — 8/92 9/92 — 5/98

Average 0.56 b.p. 0.66 b.p.Std. Error 0.40 b.p. 0.14 b.p.

Averages and Std. Errors of Spreads

Between Auction Yields & 1 pm WI Bid Yields

92 1993 1994 1996 1997 1995 1998

PX, Inc.

June 1991 - May 1998