FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that it expects to borrow $51 billion in marketable debt during the July - September 2001 quarter and to target a cash balance of $55 billion on September 30. This includes a borrowing of $61 billion in marketable Treasury securities and the buyback of an estimated $9 1/2 billion in outstanding marketable Treasury securities. In the quarterly announcement on April 30, 2001, Treasury announced that it expected to pay down a total of $57 billion in marketable debt and to target an end-of-quarter cash balance of $60 billion. The change in borrowing reflects a number of factors, most significantly the shift in the September 15 corporate tax due date to October 1 and the need to finance in this quarter the tax rebates.

The Treasury also announced that it expects to pay down $36 billion in marketable debt during the October - December 2001 quarter and to target a cash balance of $30 billion on December 31.

During the April - June 2001 quarter, the Treasury paid down $163 billion in marketable debt, including the buyback of $9 1/4 billion in outstanding marketable securities, and ended with a cash balance of $44 billion on June 30. On April 30, the Treasury announced that it expected to pay down $187 billion in marketable debt and to target an end-of-quarter cash balance of $60 billion. The increase in the borrowing was the result of a shortfall in receipts and lower issues of State and Local Government Series securities.

The Quarterly Refunding Press Conference will be held at 9:00 A.M. on Wednesday, August 1, 2001.