FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that it expects to borrow $110 billion in marketable debt during the January – March 2003 quarter and to target a cash balance of $25 billion on March 31.  In the last quarterly announcement on October 28, 2002, Treasury announced that it expected to borrow $84 billion in marketable debt and to target an end-of-quarter cash balance of $30 billion.  The increase in borrowing is due to lower receipts, higher outlays and changes in the actual and estimated cash balances at the ends of the October – December 2002 and January – March 2003 quarters.

Treasury also announced that it expects to pay down $25 billion in marketable debt during the April – June 2003 quarter and to target a cash balance of $45 billion on June 30.

The financing estimates for the January – March 2003 and April – June 2003 quarters are based upon current law and make no assumptions regarding the timing of the passage of the Administration’s economic package.

During the October – December 2002 quarter, Treasury borrowed $83 billion in marketable debt and ended with a cash balance of $33 billion on December 31.  On October 28, Treasury announced that it expected to borrow $76 billion in marketable debt and to target an end-of-quarter cash balance of $45 billion. 

The increase in borrowing was the result of increases in compensating balances, lower receipts and lower net issues of State and Local Government Series securities partially offset by lower outlays and a lower end-of-quarter cash balance.

Additional financing details relating to Treasury’s Quarterly Refunding will be released at 9:00 A.M. on Wednesday, February 5.