(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
RR-2618The Treasury Department announced on Monday that its net market borrowing for the July - September 1998 quarter is estimated to be a pay down of $45 billion with a cash balance of $40 billion on September 30. This is the first time since 1973 that net market borrowing in a July - September quarter will be a pay down. The Treasury also announced that its net market borrowing for the October - December 1998 quarter is estimated to be in the range of $10 billion to $15 billion with a cash balance of $20 billion on December 31, 1998. This is the lowest net market borrowing in an October - December quarter since 1978.
In the quarterly announcement of its borrowing needs on May 4, 1998, the Treasury estimated net market borrowing for the July - September quarter to be in the range of $0 billion to $5 billion with a cash balance of $40 billion on September 30. The decrease in estimated net market borrowing is the result of a higher than estimated end-of-June balance, an increase in estimated budget receipts and lower estimated budget outlays.
Actual net market borrowing for the April - June 1998 quarter was a pay down of $97.9 billion with an end-of-quarter cash balance of $72.3 billion. On May 4, the Treasury estimated net market borrowing for the April - June quarter to be a pay down of $110 billion with a cash balance of $45 billion on June 30. The lower-than-expected pay down is the result of a higher end-of-quarter cash balance, which included higher receipts, lower outlays and a larger net issuance of State and Local Government Series securities.
The regular quarterly Press Conference will be held at 9:00AM on Wednesday, August 5, 1998.