FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that it expects to pay down $23 billion in marketable debt during the October - December 2000 quarter and to target a cash balance of $30 billion on December 31. In the quarterly announcement of its borrowing needs on July 31, 2000, the Treasury announced that it expected to pay down $10 billion in marketable debt and to target an end-of-quarter cash balance of $30 billion. The increase in the paydown is primarily due to higher receipts, partially offset by the inclusion of inflation accruals on outstanding inflation-indexed securities and accrued discount / premium on outstanding marketable securities of $2 billion.

 The Treasury also announced that it expects to borrow $20 billion in marketable debt during the January - March 2001 quarter and to target a cash balance of $30 billion on March 31.

The Treasury paid down $45 billion in marketable debt during the July - September 2000 quarter and ended with a cash balance of $53 billion on September 30. On July 31, the Treasury announced that it expected to pay down $45 billion in marketable debt and to target an end-of-quarter cash balance of $50 billion. The improvement was the result of lower outlays, partially offset by the inclusion of inflation accruals on outstanding inflation-indexed securities and accrued discount / premium on outstanding marketable securities of $3 billion.

The Quarterly Refunding Press Conference will be held at 9:00AM on Wednesday, November 1, 2000.