FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that it expects to borrow $60 billion in marketable debt during the January - March 2002 quarter and to target a cash balance of $20 billion on March 31. In the quarterly announcement on October 29, 2001, Treasury announced that it expected to borrow $59 billion in marketable debt and to target an end-of-quarter cash balance of $30 billion. While there is little net change in borrowing this quarter, the change in the cash balance is expected to cover lower receipts and higher expenditures.

Treasury also announced that it expects to pay down $89 billion in marketable debt during the April - June 2002 quarter and to target a cash balance of $60 billion on June 30.

During the October - December 2001 quarter, Treasury borrowed $52 billion in marketable debt and ended with a cash balance of $52 billion on December 31. This included borrowing of $61 billion in marketable Treasury securities and buybacks of $81/2 billion in outstanding marketable Treasury securities. On October 29, Treasury announced that it expected to borrow $31 billion in marketable debt and to target an end-of-quarter cash balance of $35 billion. The increase in borrowing was primarily related to timing in tax receipts.

Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 A.M. on Wednesday, January 30, 2002.