U.S.

Treasury Borrowing

TREASURY FINANCING REQUIREMENTS
October — December 1999

$Bil.

$Bil.

Sources

Uses
47
2

1
2

40

40
1

17

Deficit

1
2

State and Local

47

Net Market
Borrowing
20

20
Increase in Cash
Balance

27

0

0
1

Department of the Treasury
Office of Market Finance

Includes budget results, direct loan activity, changes in accrued interest
and checks outstanding and minor miscellaneous debt transactions.
January 31, 2000-1

TREASURY FINANCING REQUIREMENTS
January — March 2000

$Bil.

43 1 2
3

40

$Bil.

Sources

Uses
3
4

40

State and Local
30

1

30

22 3 4

Deficit

43

1
2

20

10

0

Department of the Treasury
Office of Market Finance

Paydown in
Marketables

17

Decrease
in Cash
2
Balance

20

10

0
1

Includes budget results, direct loan activity, changes in accrued interest
and checks outstanding and minor miscellaneous debt transactions.

2

Assumes a $40 billion cash balance, March 31, 2000.
January 31, 2000-2

NET MARKET BORROWING
January – March 2000
(Billions of Dollars)

Total

-16.9

Done*
Bills
Regular weekly
52 week
Cash management
Coupons
7 year note
2 year note
5 year note
10 year inflation-indexed note
To Be Done

-119.4
-23.2
-5.3
-54.1

-10.1
0.1
-33.1
6.3
102.5

* Issued or announced through January 28, 2000.
Department of Treasury
Office of Market Finance

January 31, 2000-3

TREASURY OPERATING CASH BALANCE
Daily
$Bil.
90
Total Operating
Balance

80
70

Tax and Loan
Accounts Balance

Without
New
Borrowing 1

60
50
40
30
20
10
0
Federal Reserve Account

-10
-20
-30
-40
-50
-60
-70
Jan

Feb

Mar

Apr May

Jun
1999

Jul
1

Aug

Sep

Oct

Nov Dec

Jan

Feb
2000

Mar

Data points are semi-monthly.

Department of the Treasury
Office of Market Finance

January 31, 2000-4

TREASURY NET MARKET BORROWING

1

$Bil.

47.0

80
60

53.4

48.1

40.6
8.1

40

77.2

74.5
61.2
25.3
25.7

$Bil.
80

24.0

40.3
44.6
41.3

60

5.8

40

10.3
17.0
6.5

20

20
0

0

-20

-20
-40
Coupons
Over 10 yrs

-60

-40

-25.7

-15.9
-60

-38.8

5 - 10 yrs

-80

-80

2 - under 5 yrs
Bills

-100

-71.5
-100
-97.9

-120

-120
-113.8

-140

I

II III IV
1994

I
1

Department of the Treasury
Office of Market Finance

II III IV I
1995

II III IV
1996

I

II III IV
1997

I

II III IV
1998

I

II III IV
1999

-140

Excludes Federal Reserve and Government Account Transactions.

January 31, 2000-5

DISTRIBUTION OF COMPETITIVE AUCTION AWARDS OF
TREASURY NOTES
10-Year Inflation-Indexed

10-Year Fixed Rate

January & July 1999, &
January 2000 Auctions

May, August & November
1999 Auctions

4%
Primary Dealers

20%

Foreign &
International

3%
43%

1% 3%

10%

Financial Insts.
Investment
Funds

20%

82%

Pension Funds

9%

5%

Other

Note: Investment funds include investment mgrs., mutual funds, and hedge funds.
Financial insts. include nonprimary dealers, depository insts., and insurance cos.
Other includes individuals, nonfinancial cos., and other financial cos.
Department of the Treasury
Office of Market Finance

January 31, 2000-6

DISTRIBUTION OF COMPETITIVE AUCTION AWARDS OF
TREASURY BONDS
30-Year Inflation-Indexed

30-Year Fixed Rate

July 1998 &
April & October 1999 Auctions

November 1998 &
February & August 1999 Auctions

2%

1%

4%

8%

Primary Dealers
Foreign &
International

18%
44%

13%

Financial Insts.

13%

Investment
Funds
Pension Funds

21%
8%

67%
1%

Other

Note: Investment funds include investment mgrs., mutual funds, and hedge funds.
Financial insts. include nonprimary dealers, depository insts., and insurance cos.
Other includes individuals, nonfinancial cos., and other financial cos.
Department of the Treasury
Office of Market Finance

January 31, 2000-7

PRICES FOR 10-YEAR 3-7/8% IIN AND 10-YEAR 4-3/4% FIXED-RATE NOTE
Daily Data: 4/8/99 through 1/27/00
Price $
100

Price $
100

3-7/8% IIN of 1/15/09

99

99

98

98

97

97

96

96

95

95

94

94

93

93

92

92

91

91

90

90

89

89

4-3/4% of 11/15/08

88

88

87

87

86

86
Apr

May

Jun

Jul
1

Department of the Treasury
Office of Market Finance

Aug
1999

Sep

Oct

Real Price for inflation-indexed note
Correlation: 84.4% STD IIN/STD Nominal = 0.45

Nov

Dec

Jan
2000
January 31, 2000-8

1

PRICES FOR 30-YEAR 3-7/8% IIB AND 30-YEAR 5-1/4% FIXED-RATE BOND 1
Daily Data: 4/8/99 through 1/27/00
Price $
100

Price $
100
3-7/8% IIB of 4/15/29

98

98

96

96

94

94
5-1/4% of 02/15/29

92

92

90

90

88

88

86

86

84

84

82

82

80

80
Apr

May

Jun

Jul
1

Department of the Treasury
Office of Market Finance

Aug
1999

Sep

Oct

Nov

Dec

Jan
2000

Real Price for inflation-indexed note
Correlation: 91.9% STD IIN/STD Nominal = 0.61
January 31, 2000-9

NET STRIPS OUTSTANDING (1985-2000)*
$Bil.

200

150

100

50

0

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 '20
End of Quarter

Department of the Treasury
Office of Market Finance

*Strips program began February 15, 1985.
Reconstitution began May 1, 1987.
Inflation-indexed securities had not been stripped as of January 21, 2000.
January 31, 2000-10

TREASURY NET BORROWING FROM NONMARKETABLE ISSUES
$Bil.
Savings Bonds

15

$Bil.

15.3 15.3

15

13.8
State and Local Series
Foreign Series

10

8.4

10

5.7

2.4

5
2.5

1.5

5

3.3
0.8

1.3
0

0
-1.9

-0.5 -2.2
-5

-10

-4.2

-4.7
-7.6
I

II

III

1996

IV

I

II
III
1997

IV

I

II
III
1998

IV

I

II

III

1999

IV

Ie
2000

-5

-10

e estimate
Department of the Treasury
Office of Market Finance

January 31, 2000-11

STATE & LOCAL GOVERNMENT SERIES
$Bil.
25

Gross Issues

$Bil.
25

20

Redemptions

20

15

15

10

10

5

5

0
$Bil.

0
$Bil.
Net SLGs

10

10

5

5

0

0

-5

-5

-10

I

II III
1995

IV

I

II III
1996

IV

I

II

III

1997

IV

I

II III
1998

IV

I

II

III

IV

-10

1999

Note: SLGS sales were suspended from October 18, 1995 to March 29, 1996.
Department of the Treasury
Office of Market Finance

January 31, 2000-12

STATE AND LOCAL MATURITIES 2000-2005
$Bil.
12

$Bil.
12

11.4
10.8

10
9.0

8.8
8

10

9.5

7.6

7.4 7.5

7.1

7.7
7.4

8

6.3
6

6

5.3
4.7

4

4.4

3.5

4.3

4.6

4.8
4.2
4

3.5
2.6
1.8

2

0

I II III IV
2000

Department of the Treasury
Office of Market Finance

I II III IV
2001

I II III IV
2002

I II III IV
2003

I II III IV
2004

1.7

I II III IV
2005

2

0

January 31, 2000-13

QUARTERLY CHANGES IN FOREIGN AND INTERNATIONAL
HOLDINGS OF PUBLIC DEBT SECURITIES
$Bil.

$Bil.

Nonmarketable

108.9
72.9

100

100

Marketable
Net Auction Awards to Foreign

80

80

Other Transactions
51.4

63.7

60
40

1

55.5

57.9

47.8

55.5

60

36.6

40

14.9
25.1

21.6

20

23.9
11.1 8.9

20

5.5

0

0
-2.5
-13.4

-20
-40

-17.7
-34.1

I

II III
1995

Department of the Treasury
Office of Market Finance

IV

I

II III
1996

IV

I

II III
1997

IV

I

II III
1998

IV

I

II III
1999

1

Noncompetitive awards to foreign official accounts held in custody at the Federal Reserve in
excess of foreign custody account holdings of maturing securities. Foreign add-ons prohibited
from October 18, 1995 to March 29, 1996 to avoid exceeding the debt limit.

2

Data through November 30, 1999.

IV2

-20
-40

January 31, 2000-14

FOREIGN HOLDINGS AS A PERCENT OF TOTAL
PRIVATELY HELD PUBLIC DEBT
Percent
40

Percent
40
38

38

36

36

34

34

32

32

30

30

28

28

26

26

24

24

22

22

20

20

18

18

16

16

14

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

14

Quarterly
Department of the Treasury
Office of Market Finance

January 31, 2000-15

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
November 30, 1999

December 31, 1998

As a % of
Total
Foreign

As a % of
Total
Private

$ Billions

As a % of
Total
Foreign

$313.9

24.8%

9.9%

$276.1

21.6%

246.1

19.5%

7.7%

264.0

Germany

96.2

7.6%

3.0%

Mainland China

50.1

4.0%

OPEC

46.8

Hong Kong

December 31, 1997
$ Billions

As a % of
Total
Foreign

8.3%

$277.6

22.4%

8.2%

20.6%

7.9%

251.3

20.2%

7.4%

95.1

7.4%

2.9%

93.9

7.6%

2.8%

1.6%

46.4

3.6%

1.4%

47.9

3.9%

1.4%

3.7%

1.5%

42.9

3.4%

1.3%

58.4

4.7%

1.7%

45.3

3.6%

1.4%

44.2

3.5%

1.3%

35.0

2.8%

1.0%

Mexico

34.6

2.7%

1.1%

37.4

2.9%

1.1%

35.9

2.9%

1.1%

France

31.2

2.5%

1.0%

30.0

2.3%

0.9%

13.3

1.1%

0.4%

Singapore

30.1

2.4%

0.9%

43.1

3.4%

1.3%

35.2

2.8%

1.0%

Belgium-Luxemburg

29.1

2.3%

0.9%

31.5

2.5%

0.9%

26.0

2.1%

0.8%

Taiwan

27.9

2.2%

0.9%

31.3

2.4%

0.9%

33.2

2.7%

1.0%

Switzerland

25.5

2.0%

0.8%

33.7

2.6%

1.0%

28.0

2.3%

0.8%

Spain

24.5

1.9%

0.8%

41.2

3.2%

1.2%

51.7

4.2%

1.5%

Canada

18.6

1.5%

0.6%

12.4

1.0%

0.4%

11.5

0.9%

0.3%

Netherland Antilles

11.6

0.9%

0.4%

21.7

1.7%

0.7%

35.7

2.9%

1.1%

232.1

18.4%

7.3%

227.7

17.8%

6.8%

207.0

16.7%

6.1%

$1,263.6

100.0%

39.7%

$1,278.7

100.0%

38.4%

$1,241.6 100.0%

36.6%

$ Billions
Country

Japan
United Kingdom

Other

As a % of
Total
Private

As a % of
Total
Private

Estimated
Foreign Total

Source: Treasury Foreign Portfolio Investment Survey benchmark as of end-year 1994
and monthly data collected under the Treasury International Capital reporting
system.
Department of the Treasury
Office of Market Finance

January 31, 2000-16

SHORT TERM INTEREST RATES
Quarterly Averages
%

%
Through
January 26

10

Prime Rate

Federal
Funds

10

8

8

6

6

Commercial
Paper

4

2

1989

1990

Department of the Treasury
Office of Market Finance

1991

1992

1993

1994

3 Month
Treasury Bill

1995

1996

1997

1998

4

1999

2000

2

January 31, 2000-17

SHORT TERM INTEREST RATES
Weekly Averages

%

%

8

8
Through

Prime Rate

January 26

7

7
Commercial
Paper

6

6
Federal Funds

5

5

3 Month
Treasury Bill

4

3

4

3
Apr

Department of the Treasury
Office of Market Finance

May

Jun

Jul

Aug
1999

Sep

Oct

Nov

Dec

Jan
2000
January 31, 2000-18

LONG TERM MARKET RATES
Quarterly Averages
%

%

10

10
New Aa
Corporates

Through
January 26

9

9

8

8
30-Year Treasury
7

7

6

6

5

4

5

30-Year
Municipal Bonds
1989

1990

Department of the Treasury
Office of Market Finance

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

4

January 31, 2000-19

INTERMEDIATE TERM INTEREST RATES
Weekly Averages

%

%

FHLMC 30-Year
Conventional

8

8
AA 10-Year Industrial

1

7

7

Treasury
10-Year

6

6

Treasury 5-Year
5

5
10-Year InflationIndexed Note 2

4

4
Through
January 26

3

3
Apr

May

Jun
1
2

Department of the Treasury
Office of Market Finance

Jul

Aug
1999

Sep

Oct

Nov

Dec

Jan
2000

Salomon 10-yr. AA Industrial is a Thursday rate.
The first 10-year inflation-indexed note settled on February 6, 1997.
January 31, 2000-20

MARKET YIELDS ON GOVERNMENTS
%

%

6.5

6.5
January 31, 2000
November 1, 1999
6.0

6.0
%

%

6.5

5.5

6.0
10

5.0
0

1

2

3

4

6.5

12

14

5

6

16

18

20

7

22

24

8

26

28

30

9

5.5

6.0

5.0
10

Years to Maturity
Department of the Treasury
Office of Market Finance

January 31, 2000-21

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT
BY MATURITY
$Bil.
June 30, 1994

Over 10 years

3,000

2,787.1

2-10 years
2,500

472.5

1-2 years
1 year & under

2,000

Bills

870.9

1,500
434.6
1,000
448.7
500
560.6
0
1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

As of December 31
Department of the Treasury
Office of Market Finance

January 31, 2000-22

PRIVATE HOLDINGS OF TREASURY MARKETABLE DEBT
Percent Distribution By Maturity
Coupons

Over 10 years
2-10 years

1-2 years
1 year & under

Bills

100%
17
80
31
60

16
40
16
20
20
0

1988

Department of the Treasury
Office of Market Finance

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

As of December 31
January 31, 2000-23

AVERAGE LENGTH OF THE MARKETABLE DEBT

1

Privately Held
Years

June 1947
10 Years
5 Months

10

Months

December 31, 1999
5 Years, 6 Months

70

9
68

8

66

7

64

J

F

M

A

M

J

J

A

S

O

N

D

6
December 1975
2 Years
5 Months

5
4
3
2
1945

49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99
1

Department of the Treasury
Office of Market Finance

Excludes inflation-indexed securities; including IIS the average length was 5 years, 10 months.
as of December 31, 1999.
January 31, 2000-24

MATURING COUPON ISSUES
November 1999 — March 2000
(in millions of dollars)
December 31, 1999
Held by
Maturing Coupons

8 1/2%
5 7/8%
7 1/8%
5 1/2%
6 7/8%
5 1/2%
5 1/2%
6 3/4%
5 5/8%
8 7/8%
6 3/8%
8 1/4%
6 1/4%
5 1/2%
5 7/8%
5 3/8%

Note
Note
Note
Note
Note
Note
Note
Note
Note
Note
Note
Bond
Note
Note
Note
Note

Totals

02/15/00
02/15/00
02/29/00
02/29/00
03/31/00
03/31/00
04/15/00
04/30/00
04/30/00
05/15/00
05/15/00
05/31/00 2 ⁄
05/31/00
05/31/00
06/30/00
06/30/00

Total

10,673
20,421
12,496
17,776
13,188
17,026
10,535
12,433
15,634
10,496
20,763
4,224
12,752
16,580
12,464
14,939
222,400

Federal Reserve

Private
Investors

Foreign 1 ⁄
Investors

9,369
18,255
10,833
16,221
11,771
14,928
9,967
10,713
13,485
10,010
17,836
2,047
11,138
14,356
10,893
13,401

100
3,594
809
1,673
1,464
2,093
1,226
1,862
3,367
49
5,532
0
1,681
4,469
3,783
2,471

195,223

34,171

1,304
2,166
1,663
1,555
1,417
2,098
568
1,720
2,149
486
2,927
2,177 3 ⁄
1,614
2,224
1,571
1,538
27,177

2

⁄ F.R.B. custody accounts for foreign official institutions; included in Private Investors.
⁄ On January 14, Treasury announced the call for redemption at par on May 15, 2000 the 8 1/4%

3

⁄ Government account holdings included.

1

2000-05, issued May 15, 1975, due May 15, 2005 (CUSIP NO. 912810BU1).

Department of the Treasury
Office of Market Finance

January 31, 2000-25

TREASURY MARKETABLE MATURITIES
Privately Held, Excluding Bills

$Bil.
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

2000
29.9

27.6 27.1

26.9

27.3

25.5

24.2

24.3

28.7

28.0

27.7
25.1

28.6

28.4

24.3

10.0

2001
29.0

30.8

28.6

30.4

25.2

29.5

28.6

29.1

30.2

29.7

29.6

29.6

27.0

22.3

22.8

12.1

J

Department of the Treasury
Office of Market Finance

F

M

A

M

J

J

A

S

O

Securities issued prior to 1998

New issues calendar year 1999

New issues calendar year 1998

Issued or announced through January 28, 2000

N

D

January 31, 2000-26

TREASURY MARKETABLE MATURITIES
Privately Held, Excluding Bills
$Bil.
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
48
46
44
42
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

$Bil.

2002
27.5

20.5

16.8
12.4

12.5

12.5

11.9
10.1

11.4

11.7

11.7

12.1

10.9

10.8

11.1

3.5

4.2

2003

45.5

23.3

12.7

11.9

11.8

10.8

11.8

2.8

J

F

M

Department of the Treasury
Office of Market Finance

A

M

J

J

A

S

O

N

35.3

D

38.8

2004
32.4

28.1

42
40
38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

26.9

12.0

38
36
34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

2005

20.9
18.1

16.7

14.0

J

F

M

A

M

J

J

A

Securities issued prior to 1998

New issues calendar year 1999

New issues calendar year 1998

Issued or announced through January 28, 2000

S

O

N

D

January 31, 2000-27

TREASURY MARKETABLE MATURITIES
Privately Held, Excluding Bills
$Bil.
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

$Bil.

2006
19.4
19.5

18.0

17.5

3.9

26
24
22
20
18
15.7
16
14
12
10
8
6
4
2
0

2007

12.1

22.0

12.0
9.4

26
24
22
20
18 16.1
16
14
12
10
8
6
4
2
0

12.2

J

F

23.1

2008

22.6

11.7

M

Department of the Treasury
Office of Market Finance

A

M

J

J

A

S

O

N

2009

28
26
24
22
20
18
16 15.5
14
12
10
8
6
4
2
0
24
22
20
18
16
14
12
10
8
6.0
6
4
2
0

D

16.9

4.8

2010

4
2
0

2011

4
2
0

2012

4
2
0

2013

4
2
0

2014
J

28.2

F

M

A

M

J

J

A

Securities issued prior to 1998

New issues calendar year 1999

New issues calendar year 1998

Issued or announced through January 28, 2000

S

O

N

D

January 31, 2000-28

TREASURY MARKETABLE MATURITIES
Privately Held, Excluding Bills
$Bil.

$Bil.

2015

16
14
12
10
8
6
4
2
0
26
24
22
20
18
16
14
12
10
8
6
4
2
0

11.0
6.0

6.0

2016
17.7

15.7

2017

2018
8.5

7.5

J

F

M

Department of the Treasury
Office of Market Finance

A

M

J

J

A

S

O

N

2020

8.9

34
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0

12.1

D

18.4

17.6

22
20
18
16
14
12
10
8
6
4
2
0

17.5

6.2

20
18
16
14
12
10
8
6
4
2
0
16
14
12
10
8
6
4
2
0

2019

22
20
18
16
14
12
10
8
6
4
2
0

19.9

8.8

2021

10.6

10.3

J

F

M

A

M

30.1

10.6

J

J

A

Securities issued prior to 1998

New issues calendar year 1999

New issues calendar year 1998

Issued or announced through January 28, 2000

S

O

N

D

January 31, 2000-29

TREASURY MARKETABLE MATURITIES
Privately Held, Excluding Bills
$Bil.
12
10
8
6
4
2
0
24
22
20
18
16
14
12
10
8
6
4
2
0
12
10
8
6
4
2
0

2022

2023

$Bil.
9.5

21.4

16.1

10.1

2024

2025

10.6

12
10
8
6
4
2
0

11.9

12
10
8
6
4
2
0

J

F

2026

M

Department of the Treasury
Office of Market Finance

A

M

J

J

10.9

9.9

9.5

A

S

O

N

D

19.7

2027

20
18
16
14
12
10
8
6
4
2
0

9.2

9.8

9.5

18
16
14
12
10
8
6
4
2
0

16.7

16
14
12
10
8
6
4
2
0
18
16
14
12
10
8
6
4
2
0

14.3

2028
10.0

10.0

2029

10.0

10.1

2030

J

F

M

A

M

J

J

A

Securities issued prior to 1998

New issues calendar year 1999

New issues calendar year 1998

Issued or announced through January 28, 2000

S

O

N

D

January 31, 2000-30