clarinews@clarinet.com (BOB WEBSTER, UPI Business Writer) (02/01/90)
WASHINGTON (UPI) -- The Treasury announced Wednesday it plans to auction $30 billion in notes next week to refund $18.1 billion of privately held notes maturing Feburary 15 and to raise about $11.9 billion of cash. The securities to be offered are: ----$10 billion in 3-year notes maturing Feb. 15, 1993, auctioned on a yield basis February 6 in minimum demoninations of $5,000. ----$10 billion in 10-year notes maturing Feb. 15, 2000, auctioned on a yield basis February 7 in minimum denominations of $1,000. ----$10 billion in 30-year notes maturing Feb. 15, 2020, auctioned on a yield basis February 8 in minimum denominations of $1,000. Robert Glauber, the Treasury's undersecretary for finance, said the Treasury will accept noncompetitive tenders of up to $1 million for each of these issues. If the auction of the 3-year notes results in an average yield of between 8.25 percent and 8.37 percent, Glauber said the Treasury will reopen the 8.25 notes of Feb. 15, 1993. The quarterly financing is called a ``refunding'' because in the past, government frequently used the money to pay earlier buyers of its securities. Now, with the government's huge deficit, the refunding auctions tend to raise new cash for the government as well as to pay off old government debt. Glauber said the government needs to borrow $41.6 billion, assuming a $10 billion cash balance at the end of March. The Treasury's market borrowing estimates do not include any allowances for financing the working capital needs of the Resolution Trust Corp., the government agency charged with rescuing the ailing thrift industry, Glauber said.