April - June 2004 July - September 2004

(Projected) (Actuals) (Projected)

Defi cit Funding (Def + / Surplus -) 22 26 91

Means of Financing

Change in Cash Balance -24 -23 10

 Net Non-Marketable Financing 6 4 -4

 Net Marketable Financing 38 31 89

Other* 2 14 -4

Net Marketable Financing 38 31 89

Bills -38

Nominal Notes 69

TIPS 9

Bonds -8

Notes:

Starting Cash Balance 21 21 45

Ending Cash Balance 45 45 35

* Includes direct loan activity, changes in accrued interest and checks outstanding and minor miscellaneous transactions.

Note: Totals may not add due to rounding

TREASURY FINANCING REQUIREMENTS

Department of the Treasury

Office of Debt Management August 2, 2004-1

Office of Fiscal Projection

$ Billions
0

10

20

30

40

50

0

10

20

30

40

50

FY 2003

FY 2004

TREASURY DAILY OPERATING CASH BALANCE

Department of the Treasury

Office of Debt Management August 2, 2004-2

$Bil. $Bil.

Source: Daily Treasury Statement, data through July 28, 2004.

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
20

30

40

50

60

70

80

90

20

30

40

50

60

70

80

90

DEBT MATURITY MEASURES

Department of the Treasury

Office of Debt Management August 2, 2004-3

Months Months

1

Average Maturity of Issuance

Average Maturity

As of June 30, 2004

55.1

30.9 Assumptions: FY05 MSR Budget and coupon

issuance maintained at current level.

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

1 The average maturity of issuance is the ultimate average maturity achieved if coupon issuance in any given quarter is held constant going forward

and the balance of financing needs are met with changes in bill issuance. (4 quarter moving average)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0

200

400

600

800

1000

0

200

400

600

800

1000

MATURITY PROFILE

Treasury Marketable Coupon Securities

$Bil. $Bil.

Calendar Year

1

August 2, 2004-4

Actual Projected

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Department of the Treasury

Office of Debt Management

Note: Where applicable, maturities represent first call date.

Assumes coupon pattern and issuance amount maintained at current levels.

1 Issued or announced through July 30, 2004.
2004 2005 2006 2007 2008 2009

-300

-200

-100

0

100

200

300

400

500

600

-300

-200

-100

0

100

200

300

400

500

600

FINANCING RESIDUALS GIVEN CURRENT ISSUANCE CALENDAR

$Bil.

Department of the Treasury

Office of Debt Management

$Bil.

August 2, 2004-5

Deficits plus potential error in

OMB estimate

FY05 OMB MSR Budget deficit forecast

Deficits minus potential

error in OMB estimate

Bars indicate estimated additional

financing required in given year for

different deficit outcomes

Note: Potential errors were estimated with a linear least-squares regression using OMB's Budget forecasts since 1989 and the MSR since 1998.

Fiscal Years

Assumes current coupon issuance pattern and issuance amount — Bill issuance at levels required to maintain outstanding

FY$ amounts nearly equal to June 30, 2004 total outstanding
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Debt to GDP (%)

SURPLUS/DEFICIT AND DEBT TO GDP

August 2, 2004-6

Surplus/Deficit % of GDP

'09

Percent Percent

Percent Percent

2

0

-2

-4

-6

-8

1

2

0

-2

-4

-6

-8

80

60

40

20

0

80

60

40

20

0

Source: Budget Historical Tables 1.2 & 7.1.

Department of the Treasury

Office of Debt Management

1 FY 2004-09 estimates from OMB MSR Budget of the United States Government FY 2005.
0

5,000

10,000

15,000

20,000

0

5,000

10,000

15,000

Nonfinancial Credit Market 20,000

Treasuries

1960 1965 1970 1975 1980 1985 1990 1995 2000

Treasuries

Muni's

Corporates

Home Mortgages

Other Mortgages

Consumer Credit

Other

August 2, 2004-7

DOMESTIC NONFINANCIAL CREDIT MARKET AND TREASURY DEBT

$Bil. $Bil.

Source: U.S. Federal Reserve Board of Governors Flow of Funds.

30

20

10

0

Percent Percent

30

20

10

0

Department of the Treasury

Office of Debt Management
1969 1973 1977 1981 1985 1989 1993 1997 2001

TREASURY BILLS AS A PERCENTAGE OF THE MONEY MARKET

Quarterly

Department of the Treasury

Office of Debt Management August 2, 2004-8

Percent Percent

1

1 Money market = Treasury bills, nonfinancial commercial paper, and financial open market paper.

25

30

35

40

45

50

55

60

65

70

25

30

35

40

45

50

55

60

65

70

Source: U.S. Federal Reserve Board of Governors Flow of Funds statistical release Z.1.
0

50

100

150

200

250

300

350

400

450

0

50

100

150

200

250

300

350

400

450

PRIMARY DEALER TRADING VOLUME

Outright Transactions, 3-Month Moving Average $Bil.

August 2, 2004-9

Bills

Notes/Bonds

Agencies

MBS

Corp

$Bil.

1

Source: Federal Reserve Bank of New York.

1 Data available beginning September 26, 2001

Department of the Treasury Office of Debt Management

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
I II III IV I II III IV I II III IV I II III IV I II

-200

-160

-120

-80

-40

0

40

80

120

-200

-160

-120

-80

-40

0

40

80

120

-20.1

-192.1

-47.7-26.1

17.8

-163.4

74.4

52.1

52.5

15.1

84.2

82.6

111.3

60.3 81.5

113.4

145.9

31.3

TREASURY QUARTERLY NET MARKET BORROWING

$Bil.

Department of the Treasury

Office of Debt Management

$Bil.

August 2, 2004-10

Coupons

Bills

2 - under 5 yrs

5 - 10 yrs

Over 10 yrs

Coupon

Buybacks

Calendar Quarter

2000 2001 2002 2003 2004
I II III IV I II III IV I II III IV I II III IV I II -15

-10

-5

0

5

10

-15

-10

-5

0

5

10

-8.0

-5.0

-10.1

-2.2

-1.4

-1.7

-10.6

0.8

-5.5

-0.1 -0.7

7.6

-2.4

-8.4

7.6

0.8

4.5

3.9

$Bil. $Bil.

TREASURY QUARTERLY NET BORROWING

FROM NONMARKETABLE ISSUES

August 2, 2004-11

State and Local Series

Foreign Series

Savings Bonds

Department of the Treasury

Office of Debt Management

Office of Fiscal Projection

2000 2001 2002 2003 2004
1996 1997 1998 1999 2000 2001 2002 2003

0

20

40

60

80

0

20

40

60

80

100 100

PRIVATELY HELD TREASURY MARKETABLE DEBT

Percent Distribution By Maturity

1

Coupons

Calendar Year End Data

Department of the Treasury

Office of Debt Management August 2, 2004-12

14

34

15

23

14

Over 10 years

2-10 years

1-2 years

1 year & under

Bills

1 Privately held marketable debt excludes holdings of the Federal Reserve and

non-interest-bearing matured debt.

15

33

16

19

17

Percent Percent

Jun '04

19

31

14

18

18
0

5

10

15

20

25

30

35

40

45

50

0

5

10

15

20

25

30

35

40

45

50

FOREIGN HOLDINGS AS A PERCENT OF TOTAL

PRIVATELY HELD PUBLIC DEBT

Calendar Quarter

Department of the Treasury

Office of Debt Management August 2, 2004-13

Percent Percent

1

Estimated Foreign Holdings

Foreign and International Institutional Holdings at FRBNY 3

Benchmark revision

of March 2000

2

28%

50%

Benchmark revision

of June 2003

2

Benchmark revision

of June 2002

2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1

2

3

Privately held debt excludes holdings of the Federal Reserve.

Source: Federal Reserve Bank of New York statistical release H4.1.

Series for estimated foreign holdings. Data through May 31, 2004. See http://www.treas.gov/tic/index.html.
0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

AUCTION RELEASE TIMES

Data

Through

July 30

Target Release Range

Current Quarter

(May 3 - July 30)

August 2, 2004-14

Minutes from Closing to Release

Aug-03 Sep Oct Nov Dec Jan-04 Feb Mar Apr May Jun Jul

Department of the Treasury

BPD - Office of Financing

Office of Debt Management

Note: No current quarter target release range exceptions.