treasury financing requirements · january – march 1998 department of treasury office of market...

0

50

100

150

Department of the TreasuryOffice of Market Finance

TREASURY FINANCING REQUIREMENTSOctober - December 1997

February 2, 1998-1

0

50

100

150

Uses Sources$Bil.

CouponMaturities

Deficit

Coupon Refunding

Net MarketBorrowing Decrease in

CashBalance

1

1

164

$Bil.

Savings Bonds

41 17

212

1

123

11

123

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

41

41

21

State and Local

12

41

41

14

34

0

50

100

150


TREASURY FINANCING REQUIREMENTSJanuary - March 1998

0

50

100

150

Uses Sources$Bil.

CouponMaturities

Deficit

Coupon Refunding

Net MarketBorrowing

Decrease inCash

Balance

1

1

156$Bil.

Savings Bonds

32 10

212

1

124

12

124

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

41

State and Local

10

14

14

February 2, 1998-2

Assumes a $20 billion cash balance March 31, 1998.2

2

-40

-20

0

20

40

60

80

TREASURY OPERATING CASH BALANCE

$Bil.

Federal Reserve Account

Daily

Total OperatingBalance

Department of the Treasury

Office of Market Finance February 2, 1998-3

Assumes refunding of maturing issues.1

1

1997 1998

WithoutNew

Borrowing

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

WithoutNew

Borrowing 1Tax and Loan

Accounts Balance

I II III IV I II III IV I II III IV I II III IV-100

-80

-60

-40

-20

0

20

40

60

80

-100

-80

-60

-40

-20

0

20

40

60

80

53.4

8.140.6

61.2

74.5

25.3 25.7

48.1

77.2

-25.7

40.341.3 44.6

-71.5

6.517.0

TREASURY NET MARKET BORROWING$Bil.


$Bil.

1

Coupons

Bills

Over 10 yrs

5 - 10 yrs

2 - under 5 yrs

2

February 2,1998-4

1995 1996 19971994Excludes Federal Reserve and Government Account Transactions.7 year note discontinued after April 1993.

1

2

(Billions of Dollars)

NET MARKET BORROWINGJanuary – March 1998

Department of TreasuryOffice of Market Finance February 2, 1998-4a

Issued or announced through January 30, 1998.1

Total 10.0

Done -31.9Bills

Regular weekly -4.652 week -4.6Cash Management -21.1 Total -30.3

Coupons7 year note -9.12 year note -1.65 year note 0.710 year inflation-indexed note 8.4

-1.6

To Be Done 41.9

1

DISTRIBUTION OF COMPETITIVE AUCTION AWARDS OFTREASURY NOTES

February 2, 1998-5Department of the TreasuryOffice of Market Finance

Primary Dealers

Foreign &International

Financial Insts.

InvestmentFunds

Pension Funds

Other

10-Year Fixed RateFebruary, May, August andNovember 1997 Auctions

1%

88%

5%6%

1%

51%

31%

2% *

7%8%

10-Year Inflation-IndexedJanuary & April 1997 andJanuary 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.

PRICES FOR 5-YEAR 3-5/8% IIN AND 5-YEAR 6-1/4% FIXED-RATE NOTEDaily Data: Beginning 7/10/97

Price$


1

February 2, 1998-6

Price$

99

100

101

102

103

99

100

101

102

103

1 Real Price for inflation-indexed noteCorrelation: 29% STD IIN/STD Nominal = 0.32

6-1/4% of 6/30/02

NovJul Aug Sep Oct Dec Jan1997 1998

3-5/8% IIN of 7/15/02

94

96

98

100

102

104

94

96

98

100

102

104

PRICES FOR 10-YEAR 3-3/8% IIN AND 10-YEAR 6-1/4% FIXED-RATE NOTEDaily Data: Beginning 2/18/97

Price$


1

February 2, 1998-7

Price$

6-1/4% of 2/15/07

1997 1998OctMar DecFeb Apr May Jun Jul Aug Sep Nov Jan

1 Real Price for inflation-indexed noteCorrelation: -9% STD IIN/STD Nominal = 0.26

3-3/8% IIN of 1/15/07

94

96

98

100

102

104

260

280

300

320

340

360

PRICES FOR 10-YEAR 3-3/8% IIN vs. SPOT GOLDDaily Data: Beginning 2/6/97

IIN Price

Department of the TreasuryOffice of Market Finance February 2, 1998-7a

Gold Price ($)

OctMar DecFeb Apr May Jun Jul Aug Sep Nov Jan1997 1998

Spot Gold

3-3/8% IIN of 1/15/07

1 Real Price for inflation-indexed noteCorrelation: 34% STD IIN/STD Gold = .04

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 19970

50

100

150

200

NET STRIPS OUTSTANDING (1985-1997)*$Bil.

End of Quarter

Department of the TreasuryOffice of Market Finance February 2, 1998-8

*Strips program began February 15, 1985.Reconstitution began May 1, 1987.Inflation-indexed securities had not been stripped as of January 23, 1998.

I II III IV I II III IV I II III IV I II III IV I-15

-10

-5

0

5

10

15

-15

-10

-5

0

5

10

15

-1.7

-0.3

-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

9.7

Foreign Series

State and Local Series

Savings Bonds

e estimate

e

$Bil. $Bil.

TREASURY NET BORROWING FROM NONMARKETABLE ISSUES


1994 1995 1996 1997 1998

0

5

10

15

20

0

5

10

15

20Gross Issues

Redemptions

I II III IV I II III IV I II III IV I II III IV I II III IV-10

-5

0

5

10

-10

-5

0

5

10

STATE & LOCAL GOVERNMENT SERIES$Bil.

$Bil.

$Bil.

$Bil.

Net SLGs


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

1993 1994 1995 1996 1997

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV0

2

4

6

8

0

2

4

6

87.8

4.9

6.3

4.94.7

3.8

6.1

4.3 4.3

4.8

5.3

4.44.8

5.4

7.5

5.9

3.8

4.3

4.95.1

1.71.3

1.81.4

$Bil.$Bil.STATE AND LOCAL MATURITIES 1998-2003


20031998 1999 2000 2001 2002

QUARTERLY CHANGES IN FOREIGN AND INTERNATIONALHOLDINGS OF PUBLIC DEBT SECURITIES

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

-20

0

20

40

60

80

100

120

-20

0

20

40

60

80

100

120

14.5

3.5

23.6

31.6

10.3

-0.1

22.6

33.0

40.5

55.1

64.2

13.8

74.4

23.6

65.8

109.5

56.5

29.7

45.1

21.7


$Bil. $Bil.

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

Nonmarketable

MarketableNet Auction Awards to Foreign

Other Transactions

2

2 Data through November 30, 1997.

1993 1994 1995 1996 1997

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 199714

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 TOTALPRIVATELY HELD PUBLIC DEBT

Quarterly


Percent Percent

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIESDecember 31, 1995 December 31, 1996 November 30, 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 $220.0 25.5% 6.7% $286.4 25.2% 8.4% $318.2 24.7% 9.3%

United Kingdom 123.6 14.3% 3.8% 190.6 16.8% 5.6% 289.6 22.5% 8.5%

Germany 53.7 6.2% 1.6% 72.5 6.4% 2.1% 88.6 6.9% 2.6%

Netherland Antilles 50.9 5.9% 1.5% 63.9 5.6% 1.9% 58.3 4.5% 1.7%

OPEC 28.0 3.2% 0.8% 44.0 3.9% 1.3% 54.0 4.2% 1.6%

Spain 19.3 2.2% 0.6% 46.4 4.1% 1.4% 52.6 4.1% 1.5%

Mainland China 34.9 4.0% 1.1% 46.6 4.1% 1.4% 45.8 3.6% 1.3%

Hong Kong 18.8 2.2% 0.6% 24.9 2.2% 0.7% 38.2 3.0% 1.1%

Singapore 29.7 3.4% 0.9% 39.2 2.8% 0.9% 34.0 2.6% 1.0%

Taiwan 24.0 2.8% 0.7% 32.0 3.5% 1.1% 28.0 2.2% 0.8%

Belgium 12.7 1.5% 0.4% 14.0 1.2% 0.4% 27.8 2.2% 0.8%

Canada 25.1 2.9% 0.8% 26.9 2.4% 0.8% 27.1 2.1% 0.8%

Switzerland 37.0 4.3% 1.1% 31.3 2.8% 0.9% 26.2 2.0% 0.8%

Mexico 16.4 1.9% 0.5% 19.9 1.8% 0.6% 17.7 1.4% 0.5%

France 9.2 1.1% 0.3% 9.6 0.8% 0.3% 10.0 0.8% 0.3%

Other 158.9 18.4% 4.8% 187.4 16.5% 5.5% 172.5 13.4% 5.0%

EstimatedForeign Total 862.2 100.0% 26.2% 1135.6 100.0% 33.3% 1288.6 100.0% 37.8%

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 1989and monthly data collected under the Treasury International Capital reportingsystem.

Department of the Treasury February 2, 1998-14Office of Market Finance

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 19982

4

6

8

10

2

4

6

8

10

SHORT TERM INTEREST RATESQuarterly Averages

% %


FederalFunds

Prime Rate

3 MonthTreasury Bill

PaperCommercial

Through

January 28



SHORT TERM INTEREST RATESWeekly Averages

%%

4

5

6

7

8

4

5

6

7

8

Through

January 28

CommercialPaper

Federal Funds

3 MonthTreasury Bill

Prime Rate

1997 1998

Apr May Jun Jul Aug Sep Oct Nov Dec Jan

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 19985

6

7

8

9

10

5

6

7

8

9

10

New AaCorporates

30-Year Treasury

30-YearMunicipal Bonds

LONG TERM MARKET RATESQuarterly Averages

% %

Through

January 28


Apr May Jun Jul Aug Sep Oct Nov Dec Jan3.0

4.0

5.0

6.0

7.0

8.0

3.0

4.0

5.0

6.0

7.0

8.0

INTERMEDIATE TERM INTEREST RATESWeekly Averages

% %


FHLMC 30-YearConventional

Treasury 5-Year

AA 10-Year Industrial1

10-Year Inflation-Indexed Note 2

1

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

Treasury10-Year

February 2, 1998-18

January 28Through

1997 1998

0 1 2 3 4 5 6 7 8 9 104.75

5.25

5.75

4.75

5.25

5.75

MARKET YIELDS ON GOVERNMENTS% %

Years to Maturity

February 2, 1998

October 27, 1997


10 12 14 16 18 20 22 24 26 28 305.50

5.75

6.00

6.25

5.50

5.75

6.00

6.25

%%

516.1

511.2

490.8

1008.8

461.7

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBTBY MATURITY

As of December 31

February 2, 1998-20


Office of Market Finance

$Bil.June 30, 1994

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 19970

500

1000

1500

2000

2500

3000

Bills

1 year & under

1-2 years

2-10 years

Over 10 years 2988.6

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT

As of December 31

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

100%

Percent Distribution By Maturity



Coupons Over 10 years2-10 years

1-2 years

1 year & underBills

16

34

17

17

16

80

60

40

20

0

AVERAGE LENGTH OF THE MARKETABLE DEBTPrivately Held

YearsJune 1947

5 Months10 Years

5 Months2 YearsDecember 1975


10

9

8

7

6

5

4

3

2

1

1

J F M A M J J A S O N D60

62

64

66

53 61 63 65 71 79 91194547 49 51 55 57 59 67 69 73 75 77 81 83 85 87 89 93 95 97

Months

Excludes inflation-indexed notes; including IIN the average length was 5 years and 5 months as of December 31, 1997.

December 31, 19975 Years, 5 Months

ForeignInvestors

TotalMaturing Coupons

Federal Reserve PrivateInvestors

December 31, 1997

MATURING COUPON ISSUESFebruary - June 1998

(in millions of dollars)

Held by

Totals


1

9,15921,08030,87013,14921,7208,788

12,22521,4069,165

21,22612,35821,11012,59622,054

236,906

5351,2765,2681,7204,139

7151,7144,278

533,0292,0435,5071,9766,773

39,024

8,71917,24228,27811,85419,8728,154

11,61520,4558,302

17,13411,50320,00411,12520,877

215,134

4403,8382,5921,2951,848

634610951863

4,092855

1,1061,4711,177

21,772

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

8 1/8%7 1/4%5 1/8%5 1/8%6 1/8%7 7/8%5 1/8%5 7/8%9 %6 1/8%5 3/8%6 %5 1/8%6 1/4%

NoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNoteNote

02/15/9802/15/9802/28/9803/31/9803/31/9804/15/9804/30/9804/30/9805/15/9805/15/9805/31/9805/31/9806/30/9806/30/98

02468

101214161820222426283032343638

26.0

28.331.7

8.2

32.1

25.4

31.5 32.0

8.0

31.427.8

32.4 32.0

9.3

32.3

27.330.9 30.5


101214161820222426283032343638

9.7

30.9

27.129.9 29.3

9.1

29.2 28.9 29.5 28.7

9.7

26.629.8

27.4 28.6

9.9

27.930.0

27.3 27.1

TREASURY MARKETABLE MATURITIESPrivately Held, Excluding Bills

$Bil.


1998

1999

Issued or announced through January 30, 1998New issues calendar year 1996

New issues calendar year 1997Securities issued prior to 1996


101214161820222426

12.7

1.6

13.0 13.3 13.410.7

12.6 12.3

16.1

11.9

21.6

12.0 12.3 11.3

2.4

11.7 11.5


02468

101214161820

12.7

18.3 21.3

13.5

02468

101214161820222426

12.3

23.7

2.9

27.3

6.5

02468

1012141618202224262830323436

9.4

27.829.3

11.2 11.810.2

11.4

28.0

11.9 11.7 11.9

26.7

11.3 11.0 11.5

25.0

11.7 11.9

02468

1012141618202224

12.3

15.5 16.0

20.0


1012141618202224

18.8

13.9

20.5 20.02006

$Bil. $Bil.

2005

2004


20032000

02468

10121416182022242628303234

12.011.7

11.9 12.6 12.812.8

12.8 13.1 13.312.5

13.1 13.5 13.8

23.4

13.6 13.3

2002

2001

Issued or announced through January 30, 1998New issues calendar year 1996


J F M A M J J A S O N D024 4.1 4.2 4.8

02468

1012141618202224

15.3 15.3

12.2

23.5

1.1

2014J F M A M J J A S O N D

02468

101214161820

9.3 9.1

20.1


$Bil. $Bil.


2007

02468

1012141618202224

8.0

1.33.6

2008

02 3.6 3.12009

024 1.6 1.8 3.52010

024 3.5 3.92011

02468 9.42012

02468

1012 11.72013

02468

1011.3

6.0 6.02015

02468

10121416

6.4

17.8 17.62016

02468

10121416 16.7

13.12017

02468

108.2

8.82018

02468

1012141618 18.3 18.5

2020

2019

Issued or announced through January 30, 1998


New issues calendar year 1996


1012141618202224

02468

1012141618202224

9.9 10.0


1012141618202224

17.0

21.9

02468

101214161820222426283032

10.1 11.0 11.5

31.6

02468

101214

10.0 10.0 10.02027


$Bil. $Bil.


02468

101214

11.02024

02468

1012 10.9 11.4

2025

02468

1012 12.0 9.9 10.02026

2022

2021

20232028

Issued or announced through January 30, 1998

Securities issued prior to 1996




TENTATIVE SCHEDULE OF ISSUES TO BE ANNOUNCEDAND AUCTIONED IN FEBRUARY 1998

Monday Tuesday Thursday Friday

11 12 13

16

3 4

19 18 20

62

9 10

17

5

Wednesday

Announce2 year5 year

1 Does not include weekly bills2 For settlement February 173 For settlement March 24 For settlement March 5

Auction3 year

Auction10 year

23 26 25 27 24

Announce52 week

1

Auction2 year

Auction5 year3 3

Holiday

Auction30 year2

Auction52 week 4

22

Monday Tuesday Wednesday Thursday Friday

20

30

26 23

19

13 12 10 9

6

17

3

16

2

TENTATIVE SCHEDULE OF ISSUES TO BE ANNOUNCEDAND AUCTIONED IN MARCH 1998

31

11

5

24 27

4


25

1 Does not include weekly bills2 For settlement March 313 For settlement April 2

1


Announce52 week

Auction52 week 3

Auction5 year

Auction2 year 2 2

18


Monday Tuesday Wednesday Thursday Friday

17

27

23 20

16

10 9 7 6

3

14 13

TENTATIVE SCHEDULE OF ISSUES TO BE ANNOUNCEDAND AUCTIONED IN APRIL 1998

29 28

22

8

2

30

21

15

24

Department of the TreasuryOffice of Market Finance February 4, 1998-30a

1 Does not include weekly bills.2 For settlement April 153 For settlement April 30

Auction2 year 3

Auction5 year 3

1

Announce52 week

Auction52 week 3

1 Announce

Inflation-indexedsecurity

AuctionInflation-indexed

security2

treasury financing requirements · january – march 1998 department of treasury office of market...

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