FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced on Monday that its net market borrowing for the October - December 1997 quarter is estimated to be $20 billion with a cash balance of $35 billion on December 31. The Treasury also announced that its net market borrowing for the January - March 1998 quarter is estimated to be in the range of $15 billion to $20 billion with a cash balance of $20 billion on March 31, 1998.

In the quarterly announcement of its borrowing needs on July 28, 1997, the Treasury estimated net market borrowing for the October - December quarter to be in the range of $45 billion to $50 billion with a cash balance of $30 billion on December 31. The decrease in estimated net market borrowing is the result of a higher than estimated end-of-September cash balance, higher budget receipts, lower budget outlays, and an increase in net issuances of nonmarketable State and Local Government Series (SLGS) securities.

Actual net market borrowing in the July - September 1997 quarter was $6.5 billion, while the end-of-quarter cash balance was $43.6 billion. On July 28, the Treasury estimated net market borrowing for the July - September quarter to be $10 billion with a cash balance of $40 billion on September 30. The combined improvement of $7.1 billion was primarily the result of lower outlays and larger SLGS issuances.

The regular quarterly Press Conference will be held at 1:00 p.m., on Wednesday, October 29, 1997.