FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced on Monday that its net market borrowing for the January - March 1998 quarter is estimated to be $10 billion with a cash balance of $20 billion on March 31. The Treasury also announced that its net market borrowing for the April - June 1998 quarter is estimated to be a pay down in the range of $75 billion to $80 billion with a cash balance of $35 billion on June 30, 1998.

In the quarterly announcement of its borrowing needs on October 27, 1997, the Treasury estimated net market borrowing for the January - March quarter to be in the range of $15 billion to $20 billion with a cash balance of $20 billion on March 31. Our current lower estimate largely reflects higher receipts.

Actual net market borrowing in the October - December 1997 quarter was $17.0 billion, with an end-of-quarter cash balance of $31.9 billion. On October 27, the Treasury estimated net market borrowing for the October - December quarter to be $20 billion with a cash balance of $35 billion on December 31. The reduction of $3 billion in net market borrowing lowered the end-of-quarter cash balance by about $3 billion, compared with the October estimate.

The regular quarterly press conference will be held at 9:00AM on Wednesday, February 4, 1998.