FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that it expects to borrow $76 billion in marketable debt during the July - September 2002 quarter and to target a cash balance of $45 billion on September 30. In the quarterly announcement on April 29, Treasury announced that it expected to borrow $55 billion in marketable debt and to target an end-of-quarter cash balance of $50 billion. The increase in financing is due to lower receipts and higher outlays.

Treasury also announced that it expects to borrow $71 billion in marketable debt during the October – December 2002 quarter and to target a cash balance of $35 billion on December 31.

During the April – June 2002 quarter, Treasury borrowed $15 billion in marketable debt and ended with a cash balance of $40 billion on June 30. This included borrowing of $19 billion in marketable Treasury securities and buybacks of $4 billion in outstanding marketable Treasury securities. On April 29, Treasury announced that it expected to borrow $1 billion in marketable debt and to target an end-of-quarter cash balance of $45 billion. The increase in borrowing was primarily the result of lower receipts.

Additional financing details relating to Treasury’s Quarterly Refunding will be released at 9:00 A.M. on Wednesday, July 31.