FROM THE OFFICE OF PUBLIC AFFAIRS October 30, 2002PO-3572 Brian C. Roseboro November 2002 Quarterly Refunding Statement In the August Quarterly Statement, we described Treasury’s debt management mission and the actions we take to ensure that we meet our objective of lowest cost borrowing over time. To achieve this objective, we seek to make our interactions with market participants transparent. Below, we describe changes that will provide market participants with more information regarding auction outcomes and the issues actively under discussion by Treasury. This additional transparency is consistent with our responsibilities as the financing arm of the U.S. government. Additional transparency also promotes low cost financing by reducing the uncertainty in auctions and by ensuring that our decisions are made with the widest range of advice available. The current maturity structure and issuance pattern of the Treasury's offerings – based on large, liquid issuance of benchmark securities – is well placed to meet the likely path of borrowing needs over the coming years. Given that the objective of debt management is to meet the financing needs of the federal government at the lowest cost over time, and considering the likely path of borrowing needs, there is nothing today that suggests that it would be necessary or appropriate to add maturity points beyond the range of our current offerings over the coming decade. 1. A new 5-year note in the amount of $22 billion, maturing November 15, 2007. These securities will be auctioned on a yield basis at 1:00 p.m. Eastern time on Tuesday, November 5, and Wednesday, November 6, respectively. The balance of our financing requirements will be met through 10-year inflation-indexed note, 2-year note and bill offerings. Treasury may issue off-cycle cash management bills due to seasonal cash swings in early December and early January.
Included in the chart package released on Monday, October 27, 2002, is information on the average number of competitive bidders per month, broken down by bidders that submit bids directly and those that submit their bids through some other institution. This information will be provided as part of future chart packages as well as information on progress towards our goal of consistently shorter results release times.
Prior to each quarterly refunding, Treasury seeks the individual advice of some of the Federal Reserve Bank of New York’s primary dealers. We place a high value on this advice; advice elicited through questions composed by Treasury and submitted to dealers in the week prior to the quarterly refunding. As part of our efforts to promote greater transparency, we will begin to post these questions on our website: http://www.treas.gov/offices/domestic-finance/debt-management/index.html
Treasury will not be conducting buybacks this quarter.
Previously announced policy issues that remain under discussion include Treasury's efforts to:
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