FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced on Monday that its net market borrowing for the October - December 1998 quarter is estimated to be $30 billion with a cash balance of $15 billion on December 31. The Treasury also announced that its net market borrowing for the January - March 1999 quarter is estimated to be in the range of $15 billion to $20 billion with a cash balance of $20 billion on March 31.

In the quarterly announcement of its borrowing needs on August 3, 1998, the Treasury estimated net market borrowing for the October - December quarter to be in the range of $10 billion to $15 billion with a cash balance of $20 billion on December 31. The expected increase in net market borrowing is the result of lower receipts and a smaller net issuance of State and Local Government Series securities.

Actual net market borrowing for the July - September 1998 quarter was a pay down of $38.8 billion with an end-of-quarter cash balance of $38.9 billion. On August 3, the Treasury estimated net market borrowing for the July - September quarter to be a pay down of $45 billion with a cash balance of $40 billion on September 30. The lower-than-expected pay down is the result of lower receipts and higher outlays.

The regular quarterly Press Conference will be held at 9:00AM on Wednesday, October 28, 1998.