FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced on Monday that its netmarket borrowing for the July - September 1997 quarter isestimated to be $10 billion with a cash balance of $40 billion onSeptember 30. The Treasury also announced that its net marketborrowing for the October - December 1997 quarter is estimated tobe in the range of $45 billion to $50 billion with a cash balanceof $30 billion on December 31, 1997.

In the quarterly announcement of its borrowing needs on April28, 1997, the Treasury estimated net market borrowing for theJuly - September quarter to be in the range of $40 billion to $45billion with a cash balance of $40 billion on September 30. Thedecrease in estimated net market borrowing is the result of ahigher than estimated end-of-June cash balance, an increase inestimated budget receipts and lower estimated budget outlays.

Actual net market borrowing in the April - June 1997 quarterwas a pay down of $71.5 billion, while the end-of-quarter cashbalance was $51.3 billion. On April 28, the Treasury estimatednet market borrowing for the April - June quarter to be a paydown of $65 billion with a cash balance of $35 billion on June30. The combined improvement of $22.8 billion was the result of asurge in receipts and somewhat lower than estimated outlays.

The regular quarterly Press Conference will be held at 1p.m.on Wednesday, July 30, 1997.