FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced on Monday that its net market borrowing for the April - June 1998 quarter is estimated to be a pay down of $110 billion with a cash balance of $45 billion on June 30. The Treasury also announced that its net market borrowing for the July - September 1998 quarter is estimated to be in the range of $0 billion to $5 billion with a cash balance of $40 billion on September 30, 1998.

In the quarterly announcement of its borrowing needs on February 2, 1998, the Treasury estimated net market borrowing for the April - June quarter to be a pay down in the range of $75 billion to $80 billion with a cash balance of $35 billion on June 30. The current estimate largely reflects an improvement in budget receipts and an increase in net issuances of nonmarketable State and Local Government Series (SLGS) securities.

Actual net market borrowing for the January - March 1998 quarter was $10.3 billion with an end-of-quarter cash balance of $27.6 billion. On February 2, the Treasury estimated net market borrowing for the January - March quarter to be $10 billion with a cash balance of $20 billion on March 31. The higher end-of-quarter cash balance was primarily the result of lower budget outlays and larger net issuances of SLGS.

The regular quarterly press conference will be held at 9:00AM on Wednesday, May 6, 1998.