Full text of Treasury Bulletin : June 1989
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(rtas ./ ^ LIBRARY % ROOM 5030 JUN 06 1990 TREASURY OEPARfMENT % k I % DEPARTMENT OF THE TREASURY FINANCIAL MANAGEMENT SERVICE OFFICE OF THE COMMISSIONER WASHINGTON, DC. 20227 FIRST-CLASS MAIL POSTAGE & FEES PAID Department of the Treasury OFFICIAL BUSINESS PENALTY FOR PRIVATE USE, $300 eswumn For information on Direct Deposit, telephone (202) 287-0504. Permit No. G-4 SPRING ISSUE June 1989 TREASURY BULLETIN Compiled and Published by Financial Management Service ADDITIONAL FINANCIAL MANAGEMENT SERVICE RELEASES ON FEDERAL FINANCES U.S. Sold on a subscription basis only (exceptions noted) by the Superintendent of Documents, Government Printing Office, Washington, DC. 20402 (phone orders: (202) 783-3238):^ Daily Treasury Statement. Provides summary data on the Treasury's cash and debt operations for the Federal Government. Published each Federal working day. Subscription price: $152 per year (domestic), $190 per year (foreign). Monthly Treasury Statement of Receipts and Outlays of the United States Government. Provides Federal budget the surplus or deficit, results, including receipts and the means of financing the surplus. Preparation based and outlays of funds, deficit or disposing of the on agency reporting. Subscription price: $22 per year (domestic), $27.50 per year (foreign). Consolidated Financial Statements of the United States Government (annual). Provides information about Government financial operations on a consolidated basis. Single copy price: $2.25. United States Government Annual Report and Appendix. Annual Report presents budgetary results at the summary level. Appendix presents the individual receipt and appropriation accounts at the detail level. Annual Report single copy price: $2.50; Appendix free from Financial Management Service. t Treasury Bulletin subscription order form on inside back cover of this ON THE COVER: A line drawing from an old photograph of Treasury's West Portico, looking toward the Washington Monument. issue. m TREASURY BULLETIN 5ah TLnni'^ersary Office of the Secretary • Department of the Treasury • Washington, D.C. The Treasury Bulletin is for sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 Commemorating the Treasm'y Bulletin 50th Anniversary 1939 1989 - The purpose of the Bulletin is to extend knowledge of the public finances, monetary developments and activities of the Treasury Department by making information available in a more compact and usable form. Henry Morgenthau, Jr. Secretary of the Treasury 1939 MESSAGE FROM THE SECRETARY In 1989, we proudly mark not only the bicentennial of the Department of the Treasury, but also the fiftieth year of the publication of the Treasury Bulletin. The Bulletin is a valuable, lasting record entrusted with enhancing the public's understanding of the Federal Government's financial operations. For fifty years it has served as an indispensable source of timely fiscal, debt, and international statistical information. In 1939, then-Secretary of the Treasury Jr., defined the Bulletin's purpose: "to extend knowledge of the public Henry Morgenthau, finances, monetary developments and activities of the Treasury Department by making information available in a more compact and usable form." World and national events since then have increasingly underscored the need for accurate, rehable economic and financial information. In the model set forth by Secretary Morgenthau, the Bulletin has more than adequately answered that need. I commend the Financial Management Service for maintaining this tradition of excellence. Nicholas F. Brady Secretary of the Treasury 1989 IV Commemorating the Treasury Bulletin 50th Anniversary Historical Highlights of the Department of the Treasury Over the Past Five Decades 1946 1942 • Revenue Act adds many citizens • John W. Snyder becomes • World War Secretary of the Treasury to tax rolls 1943 • 1939 • Treasury Bulletin begins monthly publication • Engraving and Printing produces first food stamps II wage and salary controls end President Roosevelt signs authorizing paycheck withholding tax bill 1947 • Office of International Finance created in Treasury 1944 • Woods conference of 44 nations creates International 1948 Monetary Fund and World • Bretton Bank 1940 • Public Debt Service renamed Bureau of the Public Debt • Excess Profits Tax of 1940 President authorized to execute U.S. -U.N. Loan Agreement for U.N. headquarters 1945 1949 • 1941 • President Roosevelt purchases the first series E bond • Treasury check forgery insurance fund established Fred M. Vinson becomes Secretary of the Treasury • E. F. Bartelt becomes first Fiscal Assistant Secretary of the Treasury • IMF/IBRD (International for Reconstruction 1940 1942 1941 1943 E bond Attack on Pearl Harbor providing Historical Association much Bank and into force 1945 1946 Woods 1947 1948 1949 First woman Treasurer First series for 1944 Bretton Inaugural Treasury Bulletin The Treasury Georgia N. Clark first woman appointed Treasurer of the United States Development) Articles of Agreement enter 1939 • is of the information gratefully acknowledged presented here. IMF/IBRD of Articles Agreement WWII ends Commemorating the Treasury Bulletin 50th Anniversary 1953 1956 • George M. Humphrey becomes Secretary of the Treasury • • Bureau of Internal Revenue renamed Internal Revenue 1957 • Robert B. Anderson becomes Secretary of the Treasury • Computer processing Service 1950 • • Budget and Accounting Procedures Act Coin distribution transferred from Treasurer to the Bureau of the United States bans shipments to Communist China 1954 Deadline for filing individual income tax set by Internal • W. Randolph Burgess becomes 1951 • Revenue Code We • Under Secretary for Monetary Affairs of the first 1952 • bonds trust fund established currency bearing "In Trust" dehvered God 1958 Office of Price Stabihzation created Highway • First • for introduced Mint • • Bank Holding Company Act Public Debt's first computer installed at Parkersburg, W. Va. Treasury Secretary Snyder's Reorganization Plan for IRS assures more efficient administration of tax laws 1959 1955 • • First Treasury computer used Charter of Inter-American Development Bank signed (contained 6,500 radio tubes) 1950 1951 1952 1953 1955 1954 Tax deadline Budget and Accounting Procedures Act 1956 1957 Highway 1958 1959 trust fund First atomic submarine Internal Revenue Inter-American Reorganization Plan Development Bank First Treasury computer VI Commemorating the Treasury Bulletin 50th Anniversary 1966 1962 • • 1960 • Tariff Classification Act orders Tariff Commission to prepare Tariff Schedules of the United 1967 operations • States • • Coast Guard transferred to Transportation Dept. Cuban Assets Control Regulations issued 1968 All $1 notes ordered to carry national motto 1964 • • C. Treasury begins compiling data on U.S. Government's foreign loans 1963 1961 • • Bank Merger Act requires Federal regulation of mergers and consolidations Asian Development Bank begins Authority over trust powers of national banks assigned to the Comptroller of the Currency Douglas Dillon becomes Secretary of the Treasury First John F. Kennedy half dollar released • Joseph W. Barr becomes Secretary of the Treasury • Exchange of silver certificates for silver bullion discontinued 1965 • 1969 Henry H. Fowler becomes Secretary of the Treasury • 1961 1962 David M. Kennedy becomes Secretary of the Treasury • Pre- 1934 gold coins no longer require a Treasury license Cupronickel substituted for silver in circulating coins 1960 • 1963 1964 1965 1966 1967 1968 1969 Commemorating • VII the Treasury Bulletin 50th Anniversary Alcohol, Tobacco and Firearms becomes a Treasury separate from • 1976 bureau IRS State and Local Fiscal Assistance Act authorizes revenue sharing • Reissue of $2 bill signed by Secretary Simon and Treasurer Francine Neff • Treasury bills issued book-entry form • Tax Reform Act 1970 1973 • Special drawing rights first allocated • 1971 • • John B. Connally becomes in of 1976 approved Treasury Historical Association founded • Rate of 6 percent set for outstanding and new issues of savings bonds International Investment Survey Act authorizes quinquennial benchmark surveys of foreign investment Secretary of the Treasury • • • Dollar allowed to float and first peacetime wage-price controls instituted Emergency Loan Guarantee Board established Smithsonian Agreement ends import surcharge, devalues dollar, realigns exchange rates 1977 • W. Michael Blumenthal becomes Secretary of the Treasury 1974 • • Federal Financing Bank established to coordinate Federal borrowing WiUiam E. • Azie Taylor Morton first black woman appointed Treasurer of the United States • Fiscal year changed to Oct. 1 - Sept. 30 Simon becomes Secretary of the Treasury • U.S. citizens permitted to buy gold for the first time since 1933 1972 1978 • • George becomes P. Shultz Secretary of the Treasury • Bureau of Government Financial Operations formed by merging Bureau of Accounts and Office • United States notifies IMF of intent to change par value of Charls E. Walker becomes Deputy Secretary of the • Congressional Budget and Impoundment Control Act bills Second amendment of IMF Articles of Agreement enters into force 1979 1975 • the dollar • • certificates introduced, tied to yield on 6-month Treasury United States national historic landmark Treasury announces drawing of sterhng from IMF Money market of the Treasurer of the Treasury Building declared a • • First Bicentennial half dollar coins released • Federal Government aids Chrysler Corp. with $1.5 billion loan guarantee • Secretary Blumenthal reopens U.S. Embassy in Beijing, first Treasury China • 1970 1971 Special drawing rights Smithsonian Agreement 1972 1973 1974 BGFO Treasury Building historic landmark Revenue sharing 1975 1976 G. William Miller becomes Secretary of the Treasury 1977 1978 U.S. Bicentennial 1979 Chrysler Corp. loan guarantee '- Federal Financing Bank Fiscal year change VIM Commemorating the Treasury Bulletin 50th Anniversary 1983 • Ninth economic summit held Wilhamsburg, Va. • United States joins African 1984 1981 Regan becomes T. • • Tax Reform Act • Punta of 1986 reduces top individual tax rates to 28 percent, corporate to 34 percent • • Bureau of Government Financial Operations renamed Financial • for the first time Tax Equity and Fiscal • • Grain embargo 1981 • Office of 1982 III Paper Government check introduced by Financial exchange rates Secretary Baker introduces Baker Plan to solve third world debt problem 1984 Quarterly Treasury • Multilateral Investment Guarantee Agency established • Nicholas F. Brady becomes Secretary of the Treasury Service Plaza Accord announced to bring down value of dollar and 1983 Revenue Sharing 1988 stabilize 1980 Series terminated becomes the Treasury Management Responsibility Act 1985 Paper check Bulletin 1989 • Treasury Bulletin 50th anniversary celebrated • Treasury bicentennial observed 1987 1986 Bicentennial of Constitution 1988 1989 50th-anniversary Treasury Bulletin Treasury Variable rate savings bond calls EE savings bonds sales exceed $10 billion in fiscal 1987, highest level since 1943 • Service James A. Baker Secretary of Taxpayers use Simple Form Este Declaration 1987 and increases 1985 Market-based variable rate savings bonds first issued del new trade rounds 50 years Tax Reform Act curbs tax Management 1982 104dEZ for by U.S. taxpayer compliance Economic Recovery Tax Act reduces individual income taxes by 23 percent, lowers indexing • in shelter abuse estate taxes, introduces • First gold coin struck Government Donald Secretary of the Treasury • computerized book-entry system in Development Bank United States imposes grain embargo on the U.S.S.R. • • TREASURY DIRECT • 1980 • First securities issued under • quarterly .^«,. ^jX^^,,siC^i ^^y.^AC^^- ^.'*,Ae.£^y(^^. jS^-^i^*'^ • 1986 Treasury Bulletin issued Gold coin Tax Reform Act Financial Manage- ment Service bicentennial Contents SPRING ISSUE, JUNE 1989 TREASURY ISSUES Page INTERNATIONAL AFFAIRS "The International Debt Strategy" . . . TAX POLICY Abstracts of Recent Taxation Studies. FINANCIAL OPERATIONS FEDERAL FISCAL OPERATIONS Analysis-Budget results for the FFO-1. -Summary of fiscal second quarter, fiscal 1989 11 13 operations Chart.-Monthly receipts and outlays 14 FFO-2.-On-budget and off-budget receipts by source 15 Chart.-Budget receipts by source 17 FFO-3.-On-budget and off-budget outlays by agency 18 FEDERAL OBLIGATIONS FO-1 .-Gross obligations incurred within and outside the Federal Government by object class 20 FO-2. -Gross obligations incurred outside the Federal Government by department or agency 21 Chart.-Gross Federal obligations; gross Federal obligations incurred outside the Federal Government 23 TREASURY ACCOUNT OF THE U.S. UST-1 —Elements changes of in Federal Reserve and tax and loan note account balances 24 FEDERAL DEBT FD-1. -Summary of Federal debt 27 FD-2. -Interest-bearing public debt 27 FD-3. -Government account series 28 FD-4. -Interest-bearing securities issued by Government agencies 29 FD-5. -Maturity distribution and average length of marketable interest-bearing public debt held by private investors 30 FD-6.-Debt subject to statutory limitation Chart— Average length of the marketable debt 31 Chart. -Private holdings of Treasury marketable debt by maturity 32 FD-7.-Treasury holdings of securities issued by Government corporations and other agencies 33 TREASURY FINANCING OPERATIONS 34 30 PUBLIC DEBT OPERATIONS PDO-1 —Maturity schedule Treasury PDO-2. -Offerings bills of interest-bearing outstanding of bills marketable public debt securities other than regular weekly and 52-week 38 40 IX Contents Page PD03.-Public otterings of marKetabte securities other than regular PDCM-AtlotnitN-its by invostor dasses U.S. for public weekly Treasury 42 bills 45 marketable securities SAVINGS BONDS AND NOTES SBN-1 -Sales and redemptions by SBN-2 --Sales and redemptions by SBN-3.--Sales and redemptions by 47 series, cumulative period, series of savings all period, series E, EE. H, 47 48 bonds and notes combined and HH OWNERSHIP OF FEDERAL SECURITIES 50 OFS-1 .-Distribution of Federal securities by dass of investors and type of Issues OFS-2 -Estimated ownership of public debt securities by private investors 51 MARKET YIELDS 53 Treasury market bid yields at constant maturities, 19S2-S8 MY- 1 -Treasury mari>>et bid yields at constant maturities: bills, notes, 54 55 56 and bonds Chart-Yields of Tnjasury securities MY-2. A, Chart. -\ -,- - , \.^s of loog-term Treasury, corporate, and municipal bonds by period 57 -> of lorig-term Treasury, corporate, and munidpal bonds . FEDERAL AGENCIES" FINANCIAL REPORTS FA-2-.' Chart -^s - 58 63 -—.-•* . INTERNATIONAL STATISTICS ^ INTERNATIONAL RNANCIAL STATISTICS IFS-1 .\>sets IFS-2 - ^ IFS-3 abilities to foreigners J ? . " IFS-4 .-^ "^-r.- J, -y ,-.• \ bonds ogn arid notes issued to offksal institutions and other residents curTer>cy value of the dollar of fcjreigncountre 67 68 68 69 CAPITAL MOVEMENTS LIABIUTIES TO FOREIGNERS REPORTED BY BANKS CM4-' THE UNITED STATES .->eofhokter Chart * ._.,.-----.^ -V ;. IN . _,.,,.::. 72 73 74 75 76 CLAIMS ON FORETGiNESS REPORTED BY BANKS IN THE UNITED STATES CM-"- -I —Tn»^ -- ' > ? .-^' 77 78 79 XI Contents Page CM-ll-3 -Total claims on foreigners by type and country reported by banks SUPPLEMENTARY LIABILITIES CM-lll-1 -Dollar claims CM-lll-2.-Dollar In the United States AND CLAIMS DATA REPORTED BY BANKS IN SO THE UNITED STATES on nonbank foreigners liabilities to. and 81 dollar claims on, foreigners In countries and areas not reported separately 82 AND CLAIMS ON, FOREIGNERS REPORTED BY NONBANKING BUSINESS ENTERPRISES TME UNITED STATES LIABILITIES TO, IN CM-I V- 1 -Total liabilities and claims by type 83 CM-IV-2.-Total liabilities by country CM-IV-3. -Total liabilities by type and country 84 85 86 87 CM-IV-4.-Total claims by country CM-IV-5.-Total claims by type and country TRANSACTIONS IN LONG-TERM SECURITIES BY FOREIGNERS REPORTED BY BANKS AND BROKERS THE UNITED STATES CM-V-1 .-Foreign purchases and sales CM-V-2.-Foreign purchases and sales CM-V-3.-Net foreign transactions Chart.-Net purchases in of long-term of long-term domestic securities by type of long-term foreign securities 88 88 89 by type long-term domestic secunties by type and country domestic securities by selected countries CM-V-4 -Foreign purchases and sales CM-V-5 -Foreign purchases and sales IN 90 of long-term securities, by type and country, latest date 91 of long-term securities, by type and country, latest year 92 FOREIGN CURRENCY POSITIONS SUMMARY POSITIONS FCP-l-1 -Nonbanking firms' positions 94 FCP-l-2 -Weekly bank positions 94 CANADIAN DOLLAR POSITIONS FCP-ll-1 .-Nonbanking firms' positions 95 FCP-ll-2.-Weekly bank positions 95 GERMAN MARK POSITIONS FCP-lll-1 .-Nonbanking firms' positions FCP-lll-2.-Weekly bank positions 96 96 JAPANESE YEN POSITIONS FCP-IV-1 -Nonbanking firms' positions FCP-IV-2.-Weekly bank positions 97 97 SWISS FRANC POSITIONS FCP-V-1 -Nonbanking firms' positions FCP-V-2 -Weekly bank positions 98 98 XII Contents Page STERLING POSITIONS FCP-VI-1 --Nonbanking 99 firms' positions 99 FCP-VI-2 -Weekly bank positions US. DOLLAR POSITIONS ABROAD FCP-VII-1.--Nonbanking firms' foreign subsidiaries' positions 100 100 FCP-VII-2. --Weekly bank foreign office positions EXCHANGE STABILIZATION FUND ESF-1. -Balance sfieet 103 ESF-2. -Income and expense 103 SPECIAL REPORTS U.S. CURRENCY AND COIN OUTSTANDING AND Noto.-Detaiis of figures Abbreviations: r may not add to totals because IN CIRCULATION of rounding. represents Revised, p Preliminary, n.a. Not available. 109 XIII Nonquarterly Tables and Reports For the convenience of the Treasury Bulletin user, nonquarterly tables and reports are listed below along with the issues in which they appear. Issues Winter Federal Fiscal Operations FFO-4 -Summary revenue collections by States and other areas of internal . . v Federal Agencies' Financial Reports FA-1 .--Report on financial position v FA-3 -Report on accounts and loans receivable due from the public v FA-4. -Report on operations V FA-5 -Report on cash flow V FA-6. -Report on reconciliation V Capital Movements CM-lll-2— Dollar and liabilities to, dollar claims on, foreigners in countries and areas not regularly reported separately Special Reports Consolidated Financial Statements Statement of Liabilities of the United States Government and Other Financial Commitments States Government Trust of the United , v Fund Reports: Airport and airway Asbestos trust trust Black lung disability Civil V fund fund v and service retirement V fund trust disability fund Federal disability insurance trust fund Federal hospital insurance trust fund Federal old-age and survivors insurance trust fund Federal supplementary medical insurance trust fund Harbor maintenance trust V fund Hazardous substance superfund Highway Inland trust v fund waterways v trust fund Leaking underground storage tank National service life trust fund V V insurance fund Nuclear waste fund v Railroad retirement account Reforestation trust fund Unemployment trust v fund Investments of specified trust accounts Spring Summer Fall TREASURY ISSUES The International Debt Strategy Nicholas F. Brady I he international debt strategy has been of particular concern to this Committee for a number of years. The Interim Committee has in fact provided guidance on this issue not only to the International Monetary Fund Executive Board, but of voluntary market transactions which reduce debt or debt service, thus benefiting debtor nations and reducing new financing needs to more manageable levels. community at large. is time once again Committee to take a leadership position on the debt problem and provide direction to international efforts to But for this process to move ahead, the and the Bank must also play an active role. We have, therefore, proposed that the Fund and the Bank adapt their policy-based lending programs to support specifically voluntary debt reduction. For debtor nations requesting a debt reduction program, a portion of policy-based loans should be set aside to support transactions involving to the international It for this strengthen the debt strategy. We have offered a number of specific suggeson ideas and suggestions put forward by many of you. am greatly encouraged by the broad international support that has been expressed for the concepts and approach which have been put forward. At the same time, recognize that many questions remain. It is time, in my view, that we work together to turn these concepts into specifics which provide a basis for lasting progress in dealing with the debt problem. recently tions for strengthening the strategy, building I I We vital believe that the principles of the current strategy-the of stronger growth, debtor reforms, external importance and a case-by-case approach nations' problems-remain valid. also is crucial and World Bank to continue to play central financial support, It strategy, sound by assisting developing countries macroeconomic and structural in to individual for the Fund the formulating roles policies, in and by MF World significant debt reduction. These funds could be made available to collateralize discounted debt-for-bond exchanges, or to replenish foreign exchange reserves following a cash buy-back, once such transactions have been negotiated with commercial banks. We look to the banking community to support actively debtors' continuing reform efforts through voluntaiy debt and debt service reduction as well as continued new lending. helping to catalyze financial support from other creditors. reforms to produce key macroeconomic and changes are essential to the resolution of debt In addition, special efforts are needed as part of Fund and Bank programs to promote confidence in economic programs and encourage new direct investment flows and the repatriation of flight capital, as alternatives to new debt. The Fund should also develop improved techniques for Policy structural in problems. monitoring prompt corrective action at an private sources have estimated that assets held abroad by nationals of a number of countries might equal or exceed their external commercial bank debt. These funds, therefore, represent an important potential source of private capital for debtor countries which must be part of any overall approach to the debt problem. flight capital to early stage. Both public and We look to the banking community to support actively debtors' continuing reform efforts through voluntary debt and debt service reduction as well as continued new lending. To facilitate this process, legal constraints agreements need to be relaxed. In in existing bank loan particular, the negotiation a general waiver of sharing or negative pledge clauses for each performing debtor would be important. This could permit negotiations on a broad range of voluntary debt or debt service reduction transactions between debtors and banks which choose to pursue these alternatives. Such waivers might have a life of perhaps 3 years, to stimulate debt or debt service reduction within a relatively short timeframe. We expect these waivers to accelerate tfie pace of addition, we believe that both institutions should make available limited interest support for transactions involving significant debt or debt service reduction. Such support, which could be structured so as to safeguard the financial positions of the Fund and the Bank, could be made available on a rolling basis for a limited period of time. These efforts should help catalyze market activity which could ease debt service burdens, improve debtors' creditworthiness, and provide an impetus to growth. These actions should, therefore, be beneficial to both debtors and creditors alike. It will be important during the period ahead to maintain a close association between debtor country performance, IMF and World Bank financing, and commercial bank the same time, we should recognize that activity. At rigidities current system and lack of early financial support in in the some cases have made more difficult for debtor nations to perform well under reform programs. When a country is launching a major economic reform effort, needs to have visible, meaningful support from the international community it it These were remarks by the Secretary of the Treasury, April 1989, before the Interim Committee of the International Monetary Fund. 3, INTERNATIONAL AFFAIRS from the outset, not months later. We believe, therefore, that the Fund's policies on financial assurances should be reviewed with a view toward greater flexibility in this area. We have suggested that initial disbursements from the Fund and World Bank should occur once a waiver agreement has been reached, but prior to completion of full commercial bank financing packages. order to move ahead to strengthen the debt strategy, it that the Interim and Development Committees give clear direction to the IMF and World Bank Executive Boards on these matters. would then urge both Boards to consider promptly needed changes in Fund and Bank policies in order that new mechanisms could be put in place. In is vital I Similarly, Creditor governments, for their part, should continue to reschedule official debts in the Paris Club and maintain cover for debtor nations adopting Fund and World Bank programs. Countries should also review their respective regulatory, accounting, and tax regimes with a view to reducing impediments to debt and debt service ex(X)rt credit reduction. upon These are issues individually, Where for the national authorities to act efforts. to I would urge the banking community incorporate these ideas in their to begin negotiations with in order to reduce the period of on waivers is particularly important to scope for voluntary debt or debt service countries, individual uncertainty. Action creating the reduction. The balance among debt reduction, debt service and new lending will, of course, vary from country country and from bank to bank. reduction, to rather than the international institutions. provide possible, creditor governments should funding in support of the strengthened debt strategy. welcome the additional financial In this connection, we support which has been pledged by Japan to support these bilateral now am confident that this approach to strengthening the debt strategy can provide the basis for renewed progress on the debt problem. I TAX POLICY Abstracts of Recent Taxation Studies Report to Congress on Taxation of Insurance Syndicate Income On February 22, 1989, the Department of the Treasury released a "Report to Congress on the Taxation of Income Earned by Members of Insurance or Reinsurance Syndicates." This report was mandated by Congress because of concerns that a closing agreement executed in 1980 between the Internal Revenue Service and Lloyd's of London may require revision to account for recent changes in the The examines several insurance syndicates, members, and underwriters, including who is the appropriate taxable entity and what are the appropriate accounting rules for such insurance syndicates. As a result of the study. Treasury has concluded that the 1980 closing agreement with Lloyd's of London should be revised. taxation of insurance income. questions concerning taxation report of 1986 Report on the Taxation of Social Security Benefits The "Report on the Taxation of Social Security and Railroad Retirement Benefits In Calendar Year 1986" was released by the Department of the Treasury on February 27, 1989. In the report. Treasury presents estimates of the tax liability resulting from the taxation of Social Security and railroad retirement benefits received by high-income taxpayers during 1986. The Social Security Amendments Act of 1983 requires that taxes on Social Security and railroad retirement benefits be transferred by Treasury to the appropriate trust funds. Based on actual 1986 tax returns, the report initial calendar year 1986 transfer of $3,656 estimated taxes to the trust funds was $126 million higher than the actual taxes. The report estimates that taxes transferred to the trust funds for calendar years 1 987 through 1991 will be slightly more than $20 billion. The report also analyzes the income distribution of beneficiaries and finds that about two-thirds of the taxes on such benefits are paid by beneficiaries with AGI plus nontaxable benefits of more finds that the million of than $50,000. Sixth Report on Possessions Corporations The Department of the Treasury's sixth report on "The Operation and Effect of the Possessions Corporation System of Taxation" was released on March 31, 1989. It presents an analysis of the impact of section 936 of the Internal Revenue Code on Federal tax revenues and on employment and investment in the possessions. Almost all activity by possessions corporations is in Puerto Rico, which is the focus of most of the data and analysis presented. The tax data analyzed in the report covers tax years ending between July 1 1983, and June 30, 1984. It is therefore the first Possessions Corporations Report which presents evidence of the Impact the Tax Equity and Fiscal Responsibility Act of 1 982. The report concludes that the act reduced the tax benefits received by possessions corporations. As in previous reports, it finds that it is difficult to Identify any beneficial effects of the qualified possession source investment income provisions on real investment in the possessions. The report Is available from the Government Printing Office, GPO Stock Number 048-000-00406-7, price $7.00. of the provisions of Taxation of Americans Working Overseas On March 31, 1989, a report on "The Taxation of Americans Working Overseas: The Operation and Effect of the Foreign Earned Income Exclusion of 1983" was released by the Department of the Treasury. The report summarizes statistical data from Individual tax returns filed in 1984 on which taxpayers claimed the foreign earned income exclusion provided in section 911 of the Internal Revenue Code. The report reviews the legislative history of the foreign earned Income exclusion, describes the characteristics of taxpayers claiming the exclusion In 1983 by income level, location, etc., and estimates the associated tax expenditure at $1.3 billion for 1983. The report projects the 1986 and 1987 levels of the exclusion to be $1.3 billion and $1.1 billion, respectively, assuming no change from 1983 in the number or location of beneficiaries. The from the Government Printing Office, 048-000-00407-5, price $2.50. report GPO Copies ot the above reports may be purchased from the National Technical Information Service, 5285 Port Royal Road, Springfield, (703) 487-4660. Is available Stock Number VA 22161, phone: FINANCIAL OPERATIONS FEDERAL FISCAL OPERATIONS INTRODUCTION Background collections. Section 114 of the Budget and Accounting Procedures Act of 1950 (31 use. 3513a) requires the Secretary of the Treasury to prepare reports on the financial operations of the U.S. Government. following major categories: (1) budget receipts and (2) offsetting collections. Budget receipts are collections from the public that result The first three Federal fiscal operations (FFO) tables are published quarterly and cover 5 years of data, estimates for 2 years, detail for 13 months, and fiscal year-to-date data. The tables are designed to provide a summary of data relating to Federal fiscal operations reported by Federal entities and disbursing officers, and daily reports from the Federal Reserve banks. These reports detail accounting transactions affecting receipts and outlays of the Federal Government and off-budget Federal entities, and their related effect Government. Data used in the on the assets and liabilities of the preparation of tables FFO-1, FFO-2, and FFO-3 is derived from the Monthly Treasury Statement of Receipts and Outlays of the United States Government. US flece/pte.— Receipts reported in the tables are classified into the from the exercise of the Govennment's sovereign or governmental powers, excluding receipts offset against outlays. These collections, also called governmental receipts, consist mainly of tax receipts (including social insurance taxes), receipts from court fines, certain licenses, and deposits of earnings by the Federal Reserve System. Refunds of receipts are treated as deductions from gross receipts Offsetting collections are from other Government accounts or the public that are of a business-type or market-oriented nature. They are classified collections credited offsetting receipts into to (i.e., two major categories: (1) offsetting appropriations or fund accounts, and (2) amounts deposited in receipt accounts). Collections credited to appropriation or fund accounts normally can be used without appropriation action by Congress. These occur in (1) when authorized by law, amounts collected for materials or services are treated as reimbursements to appropria- Budget authority usually takes the form of "appropriations" which permit obligations to be incurred and payments to be made. Most appropriations for current operations are made available for obligation only during a specified fiscal year (annual appropriations). Some are for a specified longer period (multiple-year appropriations). Others, including most of those for construction, some for research, two instances: and many for trust funds, are made available for obligation until the amount appropriated has been expended or until the objectives have been attained (no-year appropriations). Offsetting receipts in receipt accounts cannot be used without being appropriated. They are subdivided into two categories: (1) Budget authority can be made available by Congress for obligations and disbursement during a fiscal year from a succeeding year's appropriations (advance funding). For many education programs. Congress provides forward funding-budget authority made available for obligation in one fiscal year for the financing of ongoing grant programs during the succeeding fiscal year. When advantageous to the Federal Government, an appropriation is provided by Congress that will become available 1 year or more beyond the fiscal year for which the appropriation act is passed (advance appropriations). Included as advance appropriations are appropriations related to multiyear budget requests. When budget authority is made available by Congress for a specific period of time, any part not obligated during that period expires and cannot be used later. Congressional actions that extend the availability of unobligated amounts that have expired or would otherwise expire are known as reappropriations. The amounts involved are counted as new budget authority in the fiscal year of the legislation in which the reappropriation action is included, regardless of when the amounts were originally appropriated or when they would otherwise lapse. Ouf/ays.-Obligations generally are liquidated by the issuance of checks or the disbursement of cash; such payments are called outlays. In lieu of issuing checks, obligations also may be liquidated (and outlays recorded) by the accrual of interest on public issues of Treasury debt securities (including an increase in the redemption value of bonds outstanding); or by the issuance of bonds, debentures, notes, monetary credits, or electronic payments. Refunds of collections generally are treated as reductions of collections, rather than as outlays. However, payments for earned-income tax credits in excess of tax liabilities are treated as outlays rather than as a reduction in receipts. Outlays during a fiscal year may be tor payment of obligations incurred in prior years or in the same year. Outlays, therefore, flow in part from unexpended balances of prior year budget authority and in part from budget authority provided for the year in which the money is spent. Total outlays include both budget and off-budget outlays and are stated net of offsetting and (2) in the three types of revolving funds (public enterprise, intragovernmental. and trust); collections are netted against tions spending, and outlays are reported as the net amount. proprietary receipts-these collections are from the public and they are offset against outlays by agency and by function, and (2) intragovernmental funds--these are payments into receipt accounts from governmental appropriation or fund accounts. They finance operations within and between Government agencies and are credited with collections from other Government accounts. The may be intrabudgetary when the payment and receipt both occur within the budget or from receipts from off-budget Federal those cases where payment is made by a Federal entity whose budget authority and outlays are excluded from the budget transactions entities in totals. Intrabudgetary transactions are subdivided into three categories: (1) interfund transactions, where the payments are from one fund group (either Federal funds or trust funds) to a receipt account in the other fund group; (2) Federal intrafund transactions, where the payments and receipts both occur within the Federal fund group; and (3) trust intrafund transactions, where the payments and receipts both occur within the trust fund group. Offsetting receipts are generally deducted from budget authority function, by subfunction, or by agency. There are four types of receipts, however, that are deducted from budget totals as undistributed offsetting receipts. They are: (1) agencies' payments and outlays by payments by off-budget Federal entities) as employers employees retirement funds, (2) interest received by trust funds, and royalties on the Outer Continental Shelf lands, and (4) other interest (i.e., interest collected on Outer Continental Shelf (including into (3) rents money in deposit funds when such money is transferred into the budget). entities. -The Federal Government has used budget concept as the foundation for its budgetary analysis and presentation since 1969. This concept calls for the budget to include all of the Government's fiscal transactions with the public. Starting in 1971, however, various laws have been enacted under which several Federal entities have been removed from the budget or created outside the budget. Other laws have moved Off-budget Federal the unified certain off-budget Federal entities onto the budget. law, the off-budget Federal entities consist of the Under current two social security 10 FEDERAL FISCAL OPERATIONS trust funds, Federal old-age and survivors insurance and Federal and net miscellaneous receipts by source. disability insurance. The off-budget Federal entities controlled, but their transactions are under provisions of law. outlays, and surplus or When an deficit are federally owned and excluded from the budget entity is off-budget, are not included in its budget receipts, budget outlays, or the budget deficit; its budget authority is not included in the totals of budget authority for the budget; and its and surplus receipts, outlays, Table FFO-3. --On-budget and Off-budget Outlays by Agency totals receipts, or deficit ordinarily are not subject to Congress [generally] obligate the in [usually] provides budget authority which is the form of appropriations, then Federal agencies Government funds to make outlays. The amounts in this a breakdown of on-budget and off-budget outlays by table represent agency. the targets set by the congressional budget resolution. Nevertheless, the Balanced Budget and Emergency Deficit 1985 (commonly known as the Gramm-Rudman- Control Act of Table FFO-4.--Summary of Internal Revenue Collections by States and Other Areas Hollings Act) included the off-budget surplus or deficit in calculating and in calculating the excess deficit purposes of that act. Partly because of this reason, attention has focused on the total receipts, outlays, and deficit of the Federal Government instead of the on-budget amounts alone. the deficit targets under that act for table summarizes the amount of total receipts, outlays, total surplus or deficit, transactions in Federal securities monetary assets, reported are Fiscal year collections span several tax liability years because they consist of prepayments (e.g., estimated tax payments and taxes withheld by employers for individual income and social security Table FFO-l.-Summary of Fiscal Operations This This annual table provides data on internal revenue collections and other areas and by type of tax. The amounts for collections made in a fiscal year beginning in October and ending the following September. classified by States and transactions and balances in total and Treasury of payments made with tax returns, and payments made after tax returns are due or are filed with delinquent returns or on delinquent accounts). taxes), of subsequent payments (e.g., operating cash. It is Table FFO-2.-On-budgct and Off-budget Receipts by Source Budget receipts are taxes and other collections from the public from the exercise of the Government's sovereign or governmental powers. The amounts in this table represent income taxes, social insurance taxes, net contributions for other insurance and retirement, excise taxes, estate and gift taxes, customs duties, that result also important to note that these data do not necessarily Federal tax burden of individual States. The amounts are reported based on the primary filing address furnished by each taxpayer or reporting entity. For multistate corporations, this address may reflect only the State where such a corporation reported its taxes from a principal office rather than other States where income was earned or where individual income and social security taxes were withheld. In addition, an individual may reside in one State and work in another State. reflect the 11 FEDERAL FISCAL OPERATIONS Budget Results for the Second Quarter, Fiscal 1989 Summary The Federal the second quarter of up sharply from $37.4 billion deficit for totaled $60.8 billion, fiscal In 1 989 percent from $532.4 parable months of fiscal the deficit 1 988. For the first half of fiscal 1 989, billion, or $8.8 billion wider than in the Outlays through the first half of this fiscal more in dollar terms than receipts relative to was $128.4 prior fiscal year. billion in fiscal 1988. the com- year rose a little year earlier figures. Most functional categories increases in the first posted moderate 1989 compared with the of outlays half of fiscal same period a year earlier. Reflecting financial difficulties in the S&L industry, spending on the commerce and housing function rose sharply. National defense expenditures rose by a Quarterly year-over-year comparisons are distorted be- cause of special technical factors which artificially reduced second-quarter spending last year and other technical factors which boosted spending in the second quarter of this year. This fiscal year. Government checks which normally would have gone out in early April were mailed late in March. This boosted the deficit for the second quarter. Looking at the first half of the fiscal year to smooth some of that volatility, outlays this fiscal year were $569.9 billion, up 7.1 little more than 4 percent. Outlays for agriculture, internaand community and regional development de- tional affairs, clined from a year earlier. Outlays posted moderate increases in the half offiscal 1989. first January-Marcli Actual fiscal Budget estimates year to date (January 1989) full fiscal Total on-budget and off-budget 1989 results: $219,623 $441,473 $975,534 On-budget receipts 148.400 315,953 708.662 Ott-budgel receipts 71.222 125.520 266.872 280.468 569.904 1.137.030 On-budget outlays 225.514 466.178 926.169 Oft-budget outlays 54,954 103.726 210,861 60,844 -128.432 161,496 (-).... -77.113 150.226 217.507 (•).... 4^16,269 21,794 Total receipts Total outlays Total surplus (+) or delicit On-budget surplus (-) (+) or deticil Oti-budget surplus () or Means delicit of financing: Borrowing from the public Reduction of operating cash. Increase 37.954 (-) Other means Total on-budget and ofl-budgel linancing •f 56,011 12 FEDERAL FISCAL OPERATIONS an increase in estimated and final tax payments for 1988 liabilities which more than offset a $0.60 billion increase in new made mandatory December 31, 1983. retirement system, and employees hired after it for Federal refunds. Employment taxes and contrlbutlons.--ln the first employment taxes and contributions an increase of $4.30 billion over the first quarter of fiscal 1988. This growth is largely attributable to the increase in payroll taxes, effective January 1988. Excise taxes.-Excise tax quarter were $9.54 December the quarter of fiscal 1989 billion for were $68.55 largely the billion, Unemployment lnsurance.--Unemployment tax receipts for the insurance compared with $3.79 billion for the year earlier period. Receipts from this source were essentially unchanged from the year ago level since slightly lower average State tax rates were approximately balanced by higher wages. Contributions for other insurance and retirement.Retirement contributions for the first quarter of fiscal 1989 were $1.14 billion compared with $1.25 billion for the same 988. All of the $0.1 1 billion decrease is due Federal employees retirement contributions. This decline is due to the replacement of retiring Federal employees that have relatively large Civil Service Retirement quarter of fiscal decrease of fi the October- seal a timing adjustment which re- the point of collection of fuel taxes, Growth in fuel consumption and other factors contributed in a the $0.31 billion growth in excise collections minor way to suited from shifting from the year ago quarter. 1 Estate and gift taxes.-Estate and gift tax receipts were $2.09 billion in the Octob>er-December quarter of 1988. This represents an increase of $0.12 billion from the previous quarter and an increase of $0.31 billion over the same quarter in the previous year. Customs dulies.-Customs duties net of refunds were $4.20 billion for the first quarter of fiscal 1989. This is an increase of $0.20 billion over the same quarter a year earlier. in System (CSRS) contributions with new employees that have Federal Employees' Retirement System (FERS) contributions. This is a result of the Federal Employees' Retirement Act of 1986, which established the relatively quarter of for compared with $9.23 1988. The increase was October-December quarter were $3.93 billion to a same consequence receipts billion small Firet-Ouarter Rscal 1989 Net the Miscellaneous receipts.-Net miscellaneous receipts for first quarter of fiscal 1989 increased by $0.90 billion from same quarter a year earlier to $6.30 billion. Deposits of Federal Reserve earnings were up by $0.60 billion, while net v other miscellaneous receipts increased by $0.30 billion. the Budge! Receipts, by Source [In billions of dollars] October Ind'widual income taxes Corporate income taxes Employment taxes and contributions UnemploymenI insurance Contributions tor other insurance and retirement Excise taxes Estate and Customs gift taxes duties Miscellaneous receipts Total budget receipts . 13 FEDERAL FISCAL OPERATIONS Table FFO-1 .--Summary of Fiscal Operations [In millions of dollars. Source: Monthly Treasury Slalemeni ol Receipts and Outlays of the United Stales Government] Total on-budqet and otf-budget results Total receipts On-budget 14 FEDERAL FISCAL OPERATIONS MONTHLY RECEIPTS AND OUTLAYS FISCAL YEARS 1988 AND 1989 Source: Monthly Treasury Statement of Receipts and Outlays of the United States Government 120 Outlays Receipts n 40 0'87 N D 1 J •88 r F MAMJJASO -T- M FISCAL YEARS 1988 AND 1989 -I D 1 J -89 r F M 15 FEDERAL FISCAL OPERATIONS Table FF0-2.--0n-budget and Off-budget Receipts by Source [In millions ol dollars. Source: Monthly Treasury SlatemenI ot Receipts and Outlays of Ihe United States Govemmenl] Income taxes Corporatic ErTployment taxes and contributions Old-age. disability, and hospital insurance 1984 1985 1986 1987 1988 1989 1990 281,805 302.554 314.803 322.463 341.435 366.240 392.466 (Est.) (Est.) 1988 -Ma; Apr May 33.296 24,913 27.071 June X.995 July 25,567 30,330 27,209 28,824 30,092 37,578 28.049 26.021 34.088 Aug Sept Oct Nov Dec 1989 Jan Feb Mar Fiscal 1989 to date 184.652 81.381 16 FEDERAL FISCAL OPERATIONS Table FF0-2.--0n-budget and Off-budget Receipts by Source-Continued [In millions of dollars] Social Insurance taxes and conlributions-- Airpon and ainway trust lund Net social insurance taxes and contri- butions 239,376 265,163 283.901 303,319 334,335 1984 1985 1986 1987 1988 1989 1990 2.501 2.856 2.743 3.066 3.195 (Est.) (Est.) 1988 -Mar Apr 25.676 37.357 33.396 27.967 26,915 28,373 28,694 23,848 25,075 24,698 31,652 32,086 May June July Aug Sept Oct Nov Dec 1989- Jan Feb Mar Fiscal 1989 M,268 to date. 167,625 279 236 246 279 368 273 260 477 293 309 527 2.499 Black lung disability Highway trust lund 17 FEDERAL FISCAL OPERATIONS BUDGET RECEIPTS BY SOURCE THROUGH SECOND QUARTER OF FISCAL YEARS 1988 AND 1989 Source: Monthly Treasury Statement of Receipts and Outlays of the Individual Income Corp. Income United States Government Social Insurance Excise Estate and Gitt Customs Duties TAXES AND OTHER RECEIPTS Misc. Receipts 18 FEDERAL FISCAL OPERATIONS Table FF0-3.--0n-buclget and Off-budget Outlays by Agency [In millions of dollars. Source: The Executive judi- Office ciary of the President Monthly Treasury Statement Funds appropriated to the President ol Receipts and Outlays of ihe United Stales Government] Agricul- ture De- partment Commerce 19 FEDERAL FISCAL OPERATIONS Table FF0-3.--0n-budget and Off-budget Outlays by Agency--Continued 20 FEDERAL OBLIGATIONS 'Obligations" are the basis on which the use of funds is in the Federal Government. They are recorded at the point which the Government makes a firm commitment to acquire goods or services and are the first of the four key events-order, delivery, payment, and consumption-which characterize the acquisition and use of resources In general, they consist of orders placed, contracts awarded, services received, and similar transactions requiring the disbursement of money controlled order, but the order private itself usually causes immediate pressure on the economy. at Obligations are classified according to a uniform set of categories based upon the nature of the transaction without regard to its ultimate purpose All payments for salaries and wages, for example, are reported as personnel compensation, whether the personal services are used in current operations or in the construc- tion of capital items. The Government transactions a strategic point in gauging the impact of the Government's operations on the national economy, since it frequently represents for business firms the Government commitment which stimulates business investment, including inventory purchases and employment of labor. Disbursements may not occur for months after the Government places its obligational stage of is Federal agencies often do business with one another; in doing so, the "buying" agency records obligations, and the "performing" agency records reimbursements In table FO-1, obligations incurred within the Government are distinguished from those incurred outside the Government. Table FO-2 shows only those incurred outside. Table FO-1 .--Gross Obligations Incurred Within and Outside the Federal Government by Object Class, as of Dec. 31, 1988 [In millions of dollars. Source: Standard Pofm 225, Report on Obligations. Irom agencies] Gross obligations incurred Personal services and benefits: Personnel compensation Personnel benelils Benelils lor lormer personnel 34.176 2,144 34,176 B,320 212 212 Contractual services ar>d supplies: Travel and transportation of persons Transportation ot things Rent, communications, and utilities Priming and reproduction Other services Supplies and materials . . . 208 543 1.234 1,629 3.258 1.442 2.172 4,684 1.426 370 450 13.502 7.495 68,929 21,192 Acquisition of capital assets: Equipment Lands and structures Investments and loans 21.786 4.492 6.144 23.499 5,232 6,146 44.758 97,703 56,595 53,406 97,790 72.595 228 228 Grants and fixed cliarges Grants, subsidies, and contributions Insurance claims and indemnities Interest and dividends . . . . Refunds Ottier: Unvouchered Undistnbuled U.S. obligations Gross obligations incurred ' * Less than $500,000. ^ For Federal budget presentation a concept ol "net obligations incurred" is generally used. This concept eliminates transaclions within the Government and revenue and reimbursements from the public which by statute may be used by Government agencies without appropriation action by the Congress. Summary figures on this basis follow. (Data are on the basis of Reports on Obligations presentation and therefore may differ somewhat from the Budget of the U.S. Government.) Gross obligations incurred (as above) Deduct; Advances, reimbursements, other income, Offsetting receipts Net obligations incurred etc. 21 FEDERAL OBLIGATIONS Table FO-2.--Gross Obligations Incurred Outside the Federal Government by Department or Agency, as of Dec. 31, 1988 [In millions of dollars. Source: Standard Form 225. Repon on Obligaions. Ifom agencies] Personal services and benefits 22 FEDERAL OBLIGATIONS Table FO-2.--Gross Obligations Incurred Outside the Federal Government by Department or Agency, as of Dec. 31, 1988--Continued [In millions ot dollars] Grants and fixed charges Equip- ment Lands and Invest- struc- ments and tures loans Grants. 23 FEDERAL OBLIGATIONS GROSS FEDERAL OBLIGATIONS AS OF DEC. 1988 31, Personal Services & Benefits Outside Government Contractual Services Within Government & Supplies Acquisition of Capital Assets Grants & Fixed Charges -I — I I I I I I I I I I I I I I I $ Billions GROSS FEDERAL OBLIGATIONS INCURRED OUTSIDE THE FEDERAL GOVERNMENT As of Dec. 31, 1988 Contractual Services and Supplies ,22% Acquisition of Capital Asset; 9% ^^^ ersonal Services and Benefits 1% Grants and Fixed Charge 58% I I I 150 100 50 I I I 200 24 ACCOUNT OF THE U.S. TREASURY SOURCE AND AVAILABILITY OF THE BALANCE IN THE ACCOUNT OF THE The operating cash of the Treasury is maintained in Treasury's accounts with the Federal Reserve banks and branches and in tax and loan accounts. Major information sources include the Daily Balance Wire received from the Federal Reserve banks and branches, and electronic transfers through the Treasury Financial Communications System As the balances in the accounts at the Federal Reserve banks become depleted, they are restored by calling in (withdrawing) funds from thousands of financial institutions throughout the country authorized to maintain tax and loan accounts. Law 95-147, the Treasury implemented 1978, to invest a portion of its operating cash and loan accounts. Under the Treasury tax and loan investment program, depositary financial institutions select the manner in which they will participate in the program. Depositaries that wish to retain funds deposited in their t?j< and loan accounts in interest-bearing obligations participate under the Note Option; depositaries that wish to remit the funds to the Treasury's account at Federal Reserve banks participate under the Remittance Option. Under authority a program on Nov. in of Public 2, business under a uniform U.S. TREASURY procedure applicable to all financial whereby customers of financial institutions deposit with them tax payments and funds for the purchase of Government securities, in most cases the transaction involves merely the transfer of funds from a customer's account to the tax and loan account in the institutions same financial institution. On occasion, to the extent authorized by in these accounts proceeds from subscriptions to public debt securities entered for their own account as well as for the accounts of their customers. Also, Treasury can direct the Federal Reserve banks to invest excess funds in these accounts directly from its account at the Federal Reserve banks. the Treasury, financial institutions are permitted to deposit obligations of depositaries maintaining tax Deposits to tax and loan accounts occur in The tax and loan system permits the Treasury to collect funds through financial institutions and to leave the funds in Note Option depositaries and in the financial communities in which they arise until such time as the Treasury needs the funds for its operations. In this way the Treasury is able to neutralize the effect of its fluctuating operations on Note Option financial institution reserves and the economy. the normal course of Table UST-1. -Elements of Changes [in in Federal Reserve and Tax and Loan Note Account Balances millions of dollars. Source: Finangal Management Service] 25 ACCOUNT OF THE Table UST-1. -Elements of Changes In TREASURY Federal Reserve and Tax and Loan Note Account Balances--Con. [In End U.S. millions of dollars] ol period During period Tax and loan nole accounts 1984 1985 1986 1987 19BB 8.514 4.174 7,514 9.120 13.023 21,913 12,886 23,870 27,316 31,375 16,778 19,877 19,087 29,688 1988 -Mar.. 2.403 16.186 20,510 2,871 16.095 29.842 19,998 8,564 31,375 24,499 16,234 25,044 30,069 18,528 3.747 16,186 16,186 9,762 4,290 4,397 Apr. May . June. Sep). 9,762 3,910 4,390 13,023 Oct.. 6,151 July . Aug.. Nov Dec . . 1989- Jan.. Feb.. Mar.. * 5.198 8.656 11.766 6,298 4,462 X,003 10,211 19.101 19,101 13,023 6,792 10,156 15,325 8,984 6,421 Less than $500,000. Represents transfers from tax and loan note accounts, proceeds from sales Government account Tax and Tax and loan note loan note loan note accounts accounts accounts 22,259 22,398 25,139 28,553 32,188 26,062 X,003 32,188 31,978 21.166 13,647 31.582 31,375 19,150 30.527 30.301 28.496 20,039 of securities and taxes. Represents checks paid, wire transfer payments, drawdowns on letters of credit, redemptions of securities other than Government account series, and investment (transfer) of excess funds out of this account to the tax and loan note accounts. Special depositaries are permitted to make payment in the form of a deposit aedit for the purchase price of U.S. Government securities purchased by them for their own account, or for the account of their customers who enter subscriptions through them, when this method of payment is permitted under the terms of the circulars inviting subscriptions to the issues. * Includes U.S. savings bonds, savings notes, retirement plan and tax and loss bonds. otfierthan series, 202 311 4.638 4.162 4,546 6.584 5,028 11.605 11.649 12.208 18.485 19.718 12,131 2,894 5,047 7,276 4,306 3,695 3,153 7,684 5,954 5,268 5,364 8,303 5,713 5,155 19.845 15,236 26,994 16,775 851 1.442 1,396 2.324 2,309 2,847 1.590 1.960 3.007 3,207 2,698 3,650 Tax and 2,436 16.095 3.568 10.487 4.266 6,155 17,631 3,901 4,055 5,230 4,676 18,528 3,430 6,401 17,671 8,444 20,176 24,245 12,663 17,815 20,748 21.795 13.991 U.S. savings notes first offered for sale as of May 1. 1967. and were discontinued after June 30, 1970. Retirement plan bonds first offered for sale as of Jan. 1,1963; tax and loss bonds first issued In March 1968. Taxes eligible for credit consist of those deposited by taxpayers in the tax and loan depositaries, as follows; Withheld income taxes beginning March 1948; taxes on enployers and employees under the Federal Insurance Contributions Act beginning January 1950, and under the Railroad Retirement Tax Act beginning July 1951; a number of excise taxes beginning July 1953; estimated corporation income taxes beginning AphI 1967; ail corporation income taxes due on or after Mar. 15, 1968; FUTA taxes beginning April 1970, and individual estimated income taxes beginning October 1988. 26 FEDERAL DEBT INTRODUCTION Treasury securities (i.e , public debt securities) comprise most of the Federal debt, with securities issued by other Federal agencies accounting for the remainder. In addition to the data on the Federal debt presented in the tables in this section of the quarterly Treasury Bulletin, the Treasury publishes detailed data on the public debt outstanding in the Monthly Statement of the Public Debt of the United States and on agency securities and the investments of Federal Government accounts in Federal securities in the Monthly Treasury Statement of Receipts and Outlays of the United States This table does not cover Fedagency borrowing from the Treasury, which is presented in the Monthly Treasury Statement of Receipts and Outlays of the United States Government The Government-sponsored entities, whose financing to other Federal agencies eral securities are presented in the memorandum section of table FD-4, are not agencies of the Federal Government, nor are their securities presented in table FD-4 guaranteed by the Federal Government. FD-5.--Maturity Distribution and Average Lengtli of Marketable Interest-Bearing Public Debt Held by Private Investors Government. Table Tabic FD-l.-Summary of Federal Debt The average maturity of the privately held marketable Treasury debt has increased gradually since it hit a trough of 2 years, 5 months, in December 1975. In March 1971, the Congress enacted a limited exception to the 4-1/4-percent interest rate ceiling on Treasury bonds that permitted the Treasury to offer securities maturing in more than 7 years at current market rates of interest for the first time since 1965. The exception to the 4-1/4-percent interest rate ceiling has been expanded since 1971 to authorize the Treasury to continue to issue long-term secunties. The volume of privately held Treasury marketable securities by maturity class reflects the remaining period to maturity of Treasury bills, notes, and bonds, and the average length comprises an average of remaining periods to maturity, weighted by the amount of each security held by private investors (i.e., excludes the Government accounts and Federal Reserve The Federal debt outstanding is summarized as to holdings of and agency securities by the public, which includes the Federal Reserve, and by Federal agencies, largely the social security and other Federal retirement trust funds Greater detail on holdings of Federal securities by particular classes of investors is presented in the ownership tables, OFS-1 and OFS-2, of the Treasury public debt Bulletin. Tabic FD-2.--Intcrcs(-Bcaring Public Debt marketable and nonmarketable Treasury Interest-bearing as to type of security. The difference between interest-bearing and total public debt securities reflects outstanding matured Treasury securities on which interest has ceased to accrue. The Federal Financing Bank (FFB) is under the supervisecurities are presented sion of the Treasury, and FFB securities shown in this banks). Table FD-6.--Dcbt Subject to Statutory Limitation table are held by a U.S. Government account. Tabic FD-3.--Govcrnmcnt Account Series Nonmarketable Treasury securities held by U.S. Government accounts are summarized as to issues to particular funds within the Government. Many of the funds invest in par-value special series nonmarketables at statutorily determined interest rates, while others The statutory debt ceiling is compared with the outstanding debt subject to limit. The other debt category includes certain Federal debt that the Congress has designated by statute to be subject to the debt ceiling. The changes in non-interest-bearing debt shown in the last column reflect matunties of Treasury securities on nonbusiness days, such as weekends and holidays. In that event, Treasury securities are redeemed on the first business day following a nonbusiness day. whose statutes do not prescribe an interest rate formula invest in market-based special Treasury securities whose terms mirror the terms of marketable Treasury securities. Table FD-4.--Intcrest-Bcaring Securities Issued by Government Agencies in Federal agency borrowing has been declining in recent years, because the Federal Financing Bank has been providing part Table FD-7.--Treasury Holdings of Securities Issued bj Government Corporations and Other Agencies Certain Federal agencies are authorized by statute to borrow from the Treasury, largely to finance direct loan programs. In addition, agencies such as the Bonneville Power Administration are authorized to borrow from the Treasury to finance capital projects. The Treasury finances such loans to the Federal agencies with issues of public debt securities. 27 FEDERAL DEBT Table FD-1. --Summary of Federal Debt [In millions o1 dollars. Source: Amount oulslanding End of fiscal or year monlh Public Monthly Treasury Slalement of Receipis and Outlays of Ihe United States Government] 28 FEDERAL DEBT Table FD-3.--Government Account Series [In millions ot dollars. Source: Monthly Slatement of the Public Debt of the UnHed Slates] 29 FEDERAL DEBT Table FD-4.--lnterest-Bearing Securities issued by Government Agencies [In millions ol dollars. Source: Monthly Treasury SlalemenI Defense End of fiscal or year month Total outstanding ol Receipts and Outlays ot the United Slates Governmenl and Financial Management Servicel 30 FEDERAL DEBT Table FD-5.--Maturity Distribution and Average Length of Marl<etable Interest-Bearing Public Debt Held by Private Investors [In End of fiscal or year month privately held 1984 1985 1986 1987 1988 1988 - Mar Apr May June July Aug Sept Oct Nov Dec 1989 • Jan Feb Mar millions ol dollars. Source: OMice of Markal Finance] Amount outstanding Within 1 year 5-10 years 10-20 years 1.017.488 1,185.675 1.354.275 1,445.366 1.555,208 437.941 472.661 606.903 483,582 524,201 332.808 402.766 467.348 526.746 562.993 130.417 159.383 189.995 209,160 232,453 49,664 62,853 70,664 72,862 74,186 66.658 88,012 119,365 153,016 171,375 1.522,745 1.496,896 1,520.909 1,523.776 1,520,303 1,549.398 1,555.208 1,566.855 1.586,834 1,566.208 1.594.936 1.612.096 1.624.734 514,363 607.467 507.638 508.031 508.332 521.960 524.201 529.869 542.246 534.093 538.115 543.397 545,238 542.609 528.078 544.505 540.794 535.847 5S5.299 552.993 557.662 566.827 548.110 226,733 224,286 222,586 229,204 229,946 225,965 232,453 233,211 223,027 229,790 231,204 230,003 238,531 74,015 73,382 73,228 165,025 163.693 172,952 172,616 172.952 171.603 171.375 171.547 176.789 176.532 176.768 186.278 186.278 571 .029 574.598 576.867 73,131 73,226 74,571 74,186 74,566 77.946 77,683 77.820 77,820 77,820 4 yrs 31 FEDERAL DEBT 32 FEDERAL DEBT 33 FEDERAL DEBT Table FD-7.~Treasury Holdings of Securities Issued by Government Corporations and Other Agencies [In End millions of dollars. Source: Monthly Treasufy of fiscal year or montfi 211.833 230.954 210.468 211.875 193.842 1984 1985 1986 1987 1988 1988- Mar Apr May June July Aug Sept Oct Nov Dec 1989 -Jan Feb Mar 192.131 196.610 191.313 193.607 194.924 195.837 193.842 180.918 179.198 181.247 183.905 185,805 185.113 Statement of Receipts and Outlays of Ihe United Stales Government] 34 TREASURY FINANCING OPERATIONS, JANUARY-MARCH JANUARY 52-Weck 1989 Bills On January On January would auc4 the Treasury announced that $7,000 million of 7-year notes to refund $3,296 million of notes maturing January 15, 1989, and to raise about $3,700 million new cash. The notes offered were Treasury Notes of Series E-1996, dated January 17, 1989, due January 15, 1996, with interest payable on July 15 and January 15 until it tion maturity. An interest rate of 9-1/4 percent was set after the determination as to which tenders were accepted on a yield auction basis. Tenders for the notes were received until 1 p.m. EST, January 11, 1989, and totaled $22,572 million, of which $7,021 million was accepted at yields ranging from 9.29 percent, price 99.798, up to 9.30 percent, price 99.747. Tenders at the high yield were allotted 41 percent. Noncompetitive tenders were accepted in full at the average yield, 9.30 percent, price 99.747. tenders accepted These from totaled $647 million. investors private Competitive totaled $6,374 million. In addition to the $7,021 the auction process, $150 6 tenders were invited for approximately 364-day Treasury bills to be dated January 19, 1989, and to mature January 18, 1990. As the 52-week bills maturing on January 19 were outstanding in the amount $9,000 Auction of 7-Year Notes tenders accepted in accepted from Federal million of million was Reserve banks as agents for foreign and international monetary authorities, and $212 million was accepted from Federal Reserve banks for their own account. Auction of 2-Year Notes On January 18 the Treasury announced that it would auction $9,250 million of 2-year notes to refund $10,946 million of notes maturing January 31, 1989, and to paydown of million of $9,437 million, this issue resulted in a paydown of about Tenders were opened on January 12. They totaled $35,125 million, of which $9,042 million was accepted, including $1,573 million of noncompetitive tenders from the public and $2,410 million of the bills issued to Federal Reserve banks for themselves and as agents for foreign and international monetary authorities. The average bank $425 million. discount rate was 8.45 percent. FEBRUARY February Quarterly Financing On February 1 the Treasury announced that it would auction $9,750 million of 3-year notes of Series R-1992, $9,500 million of 10-year notes of Series A-1999, and $9,500 million of 30-year bonds of 2019 to refund $15,130 million of Treasury securities maturing February 15 and to raise about $13,625 million of new cash. The notes of Series R-1992 were dated February 15, 1989, due February 15, 1992, with interest payable on August 15 and February 15 until maturity. An interest rate of 9-1/8 percent was set after the determination as to which tenders were accepted on a yield auction basis. about $1,700 million. The notes offered were Treasury Notes V-1991, dated January 31, 1989, due January 31, 1991, with interest payable on July 31 and January 31 until maturity. An interest rate of 9 percent was set after the determination as to which tenders were accepted on a yield auc- notes were received until 1 p.m. EST, and totaled $31,264 million, of which $9,761 million was accepted at yields ranging from 9.17 percent, price 99.884, up to 9.19 percent, price 99.833. Tenders at the high yield were allotted 26 percent. Noncompetitive tenders were accepted in full at the average yield, 9.18 percent, price 99.859. These totaled $1,750 million. Competitive tenders accepted from private investors totaled $8,011 mil- tion basis. lion. of Series Tenders for the notes were received until 1 p.m. EST, January 25, and totaled $25,976 million, of which $9,289 million was accepted at yields ranging from 9.06 percent, price 99.892, up to 9.08 percent, price 99.857. Tenders at the high yield were allotted 79 percent. Noncompetitive tenders were accepted in full at the average yield, 9.08 percent, price 99.857. These totaled $1,992 million. Competitive tenders accepted from private investors totaled $7,297 million. In addition to the $9,289 million of tenders accepted the auction process, $860 million was awarded to in Tenders February In for the 7, addition to the $9,761 the auction process, $465 million of million tenders accepted in was accepted from Federal Reserve banks as agents for foreign and international monetary authorities, and $1,111 million was accepted from Federal Reserve banks for their own account. The notes of Series A-1999 were dated February 15, 1989, due February 15, 1999, with interest payable on August 15 and February 15 until maturity. An interest rate of 8-7/8 percent was set after the determination as to which tenders were accepted on a yield auction basis. Federal Reserve banks as agents for foreign and international monetary authorities. An additional $789 million was accepted from Federal Reserve banks for their own account. were received until 1 p.m. EST, and totaled $22,740 million, of which $9,502 million was accepted at yields ranging from 8.90 percent, price 99.837, up to 8.92 percent, price 99.706. Tenders at the high yield were allotted 76 percent. Noncompetitive Tenders February 8, for the notes 35 TREASURY FINANCING OPERATIONS, JANUARY-MARCH tenders were accepted cent, price 99.771. accepted tenders in full at These from the average yield, 8.91 per- totaled $522 million. investors private Competitive totaled $8,980 million. addition to the $9,502 million of tenders accepted In the auction process, Reserve banks $200 for their million own account. The notes of Series A-1999 may be held in STRIPS The minimum par amount required is $1,600,000. was form. 2019 were dated February 15, 1989, due 2019, with interest payable on August 15 and The bonds February 15, February 15 in was accepted from Federal of until maturity. An interest rate of 8-7/8 percent were set after the determination as to which tenders accepted on a yield auction basis. bonds were received until 1 p.m. EST, and totaled $17,163 million, of which $9,508 million was accepted at yields ranging from 8.90 percent, price 99.740, up to 8.95 percent, price 99.223. Tenders at the high yield were allotted 12 percent. Noncompetitive tenders were accepted in full at the average yield, 8.91 perTenders February for the $760 million was accepted from Federal Reserve banks as agents for foreign and international monetary authorities, and $897 million was accepted from Federal Reserve banks for their own account. the auction process, The notes of Series J-1994 were dated March 3, 1989, due May 15, 1994, with interest payable on November 15 and May 15 until maturity. An interest rate of 9-1/2 percent was set after the determination as to which tenders were accepted on a yield auction basis. Tenders for the notes were received until 1 p.m. EST, February 23, and totaled $21,739 million, of which $7,812 million was accepted at a yield of 9.48 percent, price 99.996, up to 9.49 percent, price 99.955. Tenders at the high yield were allotted 71 percent. Noncompetitive tenders were accepted in full at the average yield, 9.49 percent, price 99.955. These totaled $696 million. Competitive tenders accepted from private investors totaled $7,1 16 million. 9, cent, price 99.636. tenders 1989 accepted These from totaled private $307 million. investors Competitive In addition to the $7,812 million of tenders accepted in the auction process, $650 million was awarded to Federal Reserve banks as agents for foreign and international monetary authorities. $9,201 totaled million. 52-Week In addition to the $9,508 million of tenders accepted the auction process, $100 million was accepted from Federal Reserve banks for their own account. The bonds of 2019 may be held in STRIPS minimum par amount required is $1,600,000. form. The Auction of 2-Year and 5- Year 2-Month Notes On February 15 the Treasury announced that it Bills in would auction $9,250 million of 2-year notes of Series W-1991 and $7,750 million of 5-year 2-month notes of Series J-1994 to On February 3 tenders were invited for approximately 364-day Treasury bills to be dated February 16, 1989, and to mature February 15, 1990. The issue was to refund $9,907 million of maturing 52-week bills and to paydown about $900 million. Tenders were opened on February 14. They totaled $27,737 million, of which $9,032 million was accepted, including $1,437 million of noncompetitive tenders from the public and $3,260 million of the bills issued to Federal Reserve banks for themselves and as agents for foreign and international monetary authorities. The average bank discount rate was 8.59 percent. $9,000 million of refund $10,626 million of publicly held 2-year notes maturing new MARCH The notes of Series W-1991 were dated February 28, 1989, due February 28, 1991, with interest payable on August 31 and February 28 until maturity. An interest rate of 9-3/8 percent was set after the determination as to which tenders were accepted on a yield auction basis. Auction of 2-Year and 4-Year Notes February 28, 1989, and to raise about $6,375 million of cash. Tenders for the notes were received until 1 p.m. EST, February 22, and totaled $23,936 million, of which $9,263 million was accepted at yields ranging from 9.47 percent, price 99.831, up to 9.50 percent, price 99.777. Tenders at the high yield were allotted 41 percent. Noncompetitive tenders were accepted in full at the average yield, 9.49 percent, price 99.795. These totaled $1,565 million. Competitive tenders accepted from private investors totaled $7,698 addition to the $9,263 million of tenders accepted it The notes of Series X-1991 were dated March 31, 1989, due March 31, 1991, with interest payable on September 30 and March 31 until maturity. An interest rate of 9-3/4 percent was set after the determination as to which tenders were accepted on a yield auction basis. Tenders for the notes were received until 1 p.m. EST, March 28, and totaled $27,183 million, of which $9,269 mil- million. In would aucthe Treasury announced that $9,250 million of 2-year notes of Series X-1991 and to refund Series N-1993 $7,500 million of 4-year notes of $16,527 million of Treasury notes maturing March 31 and to raise about $225 million of new cash. On March 22 tion in lion was accepted at yields ranging from 9.84 percent, price 36 TREASURY FINANCING OPERATIONS, JANUARY-MARCH 99.840, up to 9.88 percent, price 99.769. Tenders at the high were allotted 50 percent. Noncompetitive tenders were accepted in full at the average yield, 9.87 percent, price 99.787. These totaled $1,800 million. Competitive tenders yield accepted from private investors totaled $7,469 Reserve banks as agents for foreign and international monetary authorities, and $822 million was accepted from Federal Reserve banks for their own account. million. 52-Week In addition to the $9,269 million of tenders accepted the auction process, $1,230 million 1989 Bills in was accepted from Fed- Reserve banks as agents for foreign and international monetary authorities, and $1,500 million was accepted from Federal Reserve banks for their own account. eral The notes of Series N-1993 were dated Inarch 31, 1989, due March 31, 1993, with interest payable on September 30 and March 31 until maturity. An interest rate of 9-5/8 percent was set after the determination as to which tenders were accepted on a yield auction basis. On March 3 tenders were invited for approximately 364-day Treasury bills to be dated March 16, 1989, and to mature March 15, 1990. The issue was to refund $9,200 million of maturing 52-week bills and to paydown about $200 million. Tenders were opened on March 9. They totaled $26,420 million, of which $9,007 million was accepted, including $1,057 million of noncompetitive tenders from the public and $3,030 million of the bills issued to Federal Reserve banks for themselves and as agents for foreign and international monetary authorities. The average bank discount rate was 8.68 percent. $9,000 million of Tenders for the notes were received until 1 p.m. EST, March 29 and totaled $26,086 million, of which $7,510 million was accepted at yields ranging from 9.69 percent, price 99.789, up to 9.70 percent, price 99.756. Tenders at the high yield were allotted 48 percent. Noncompetitive tenders were accepted in full at the average yield, 9.70 percent, price 99.756. These totaled $1,419 million. Competitive tenders accepted from private investors totaled $6,091 million. In addition to the $7,510 million of tenders accepted in the auction process, $710 million was accepted from Federal Cash Management On March 27 $15,000 million of Bills tenders were invited for approximately 17-day bills to be issued April 3, 1989, amount of bills dated October 20, representing an 1988, maturing April 20, 1989. The issue was to raise new cash. Tenders were opened on March 30. They totaled $80,974 million, of which $15,106 million was accepted. The v average bank discount rate was 9.64 percent. additional 37 PUBLIC DEBT OPERATIONS INTRODUCTION Uackground The Second 52-week bill is a reopening of the existing 52-week low, and average yields on accepted tenders and the Liberty Bond Act (31 U.S.C. 3101, at seq.) pro- vides the Secretary of the Treasury with broad authority to borrow to determine the terms and conditions of issue, conversion, and maturity, payment, and interest rate on Treasury securities. Data in the "Public Debt Operations" section, which have been published in the Treasury Bulletin in some form since its inception in 1939, per- marketable Treasury securities, currently bills, notes, and bonds. Treasury bills are discount secunties that mature in 1 year or less, while Treasury notes and bonds have semiannual interest payments. New issues of Treasury notes mature in 2 to 10 years, and bonds mature in over 10 years from the issue date. Each marketable Treasury security is listed in the Monthly Statement of the Public Debt of the United States. tain only to Table PDO-l.-Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than Regular Weekly and 52-Week Treasury All Bills unmatured Treasury notes and bonds are order, beginning with the earliest maturity. listed in maturity A separate breakout is provided for the combined holdings of the Government accounts and Federal Reserve banks, so that the "All other investors" category includes all private holdings The weekly auctions of 13- and 26-week bills and bills every fourth week are presented in table PDO-2. Treasury bills mature each Thursday. f^Jew issues of 13week bills are reopenings of 26-week bills. The 26-week bill issued every fourth week to mature on the same Thursday as an existing results of auctions of 52-week The high, Table PDO-3."Public Offerings of Marketable Securities Other than Regular Weekly Treasury Bills The results of auctions of marketable Treasury securities, other than weekly bills, are listed in the chronological order of the auction dates over approximately the most recent 2 years. This table includes notes and bonds presented in table PDO-1, 52-week bills in table PDO-2, and data for cash management bills. Treasury offers cash management bills from time to time to bridge temporary or seasonal declines in the cash balance. Cash management bill maturities generally coincide with the maturities of regular issues of Treasury bills. Table PDO-4.-Allotments by Investor Classes for Public Marketable Securities, Parts Table PDO-2. -OfTcrings of Bills bill. dollar value of presented, along with the dollar value of awards on a competitive and a noncompetitive basis. The Treasury accepts noncompetitive tenders of up to $1 million in each auction of Treasury securities in order to assure that individuals and smaller institutions are able to participate in offerings of new marketable Treasury securities. Noncompetitive bids are awarded at the average yield on accepted competitive bids. total bids is A and B Data on allotments of marketable Treasury securities by investor class are presented in chronological order of the auction date for approximately the most recent 2 years. These data have appeared in the Treasury Bulletin since 1 956. Tenders in each Treasury auction of marketable securities other than weekly auctions of 13- and 26week bills are tallied by the Federal Reserve banks into investor classes described in the footnotes to the table. 38 PUBLIC DEBT OPERATIONS Table PDO-1. --Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1989 [In millions of dollars. Source: Monthly Slaiemenl Amount Date of maturities of Ihe Public Debt of Ihe UnHed Stales, and Otiice of Market Fina Amount of maturities 39 PUBLIC DEBT OPERATIONS Table PDO-1 .--Maturity Schedule of Interest-Bearing Marketable Public Debt Securities Other than Regular Weekly and 52-Week Treasury Bills Outstanding, Mar. 31, 1989-Continued [In Amount Dale ol rnalufflies millions of dollars] Amount of maturities 40 PUBLIC DEBT OPERATIONS Table PD0-2.--0fferlngs of ppllar amounis in millions. Description of new Source: Monthly Slaiemeni of the Public Debt Amounts issue Bills of Ihe United States and allotments] of bids accepted Amounl Number of Amount of days to bids maturity tendered On competitive basts ' 41 PUBLIC DEBT OPERATIONS Table PD0-2.--0fferings of Bills-Continued 8 42 PUBLIC DEBT OPERATIONS Table PD0-3.--Public Offerings of Marketable Securities Other [Dollar amounis in millions. Source: Bureau Period to Description of securities ' ol tfian Regular Weekly Treasury final maturity (years, montfis. Amount Range tendered accepted bids tor 3/19/87 3«4/87 3^1/87 3/31/87 4/01/87 4/07/87 4/03/87 4/16/87 4/30/87 5/15/87 5/15/87 5/15/87 5/14/87 6/01/87 6/03/87 6/11/87 6/30/87 6/30/87 7/06/87 7/09/87 7/31/87 8/06/87 8/17/87 * 8/17/87 3/25/87 3/26/87 4/02/87 4/02/87 4/09/87 4/22/87 5/05/87 5/06/87 5/07/87 5/12/87 5/20/87 5/27/87 6/04/87 6/23/87 6/24/87 6/25/87 7/02/87 7/30/87 8/04/87 8/11/87 8/12/87 8/13/87 8/26/87 8/27/87 9/01/87 9/29/87 9/30/87 10/05/87 10/07/87 10/21/87 10/22/87 11/03/87 11/04/87 11/05/87 11/18/87 11/19/87 11/24/87 12/17/87 12/22/87 12/23/87 1/06/88 1/14/88 1/27/88 2/02/88 2/03/88 2/04/88 2/11/88 2/24/88 2/25/88 3/10/88 3/23/88 3/24/88 3/25/88 3/30/88 4/07/88 4/12/88 4/27/88 5/05/88 5/10/88 5/11/88 5/12/88 5/25/88 5/26/88 6/01/88 6/02/88 6/22/88 6/23/88 6/30/88 7/12/88 7/27/88 7/28/88 8/09/88 8/10/88 8/11/88 8/23/88 8/24/88 8/25/88 8/30/88 9/22/88 9/27/88 9/28/88 10/12/88 10/20/88 10/26/88 11/08/88 See footnotes at ^8/17/87 8/31/87 9/03/87 9/03/87 9/30/87 10/01/87 10/15/87 10/15/87 11/02/87 10/29/87 11/16/87 ^11/16/87 11/16/87 11/30/87 11/27/87 12/01/87 12/24/87 1201/87 12/31/87 1/15/88 1/21/88 2/01/88 2/16/88 ^2/16/88 2/16/88 2/18/88 2«9/88 3/03/88 3/17/88 3/31/88 3/31/88 3/30/88 4/04/88 4/14/88 4/16/88 6/02/88 5/12/88 5/16/88 ' 6/16/88 ^5/16/88 5/31/88 6/01/88 6/07/88 6/09/88 6/30/88 6/30/88 7/07/88 7/15/88 8/01/88 8/04/88 8/15/88 8/15/88 8/15/88 8/31/88 9/01/88 9/01/88 9/02/88 9/29/88 9/30/88 9/30/88 10/17/88 10/27/88 10/31/88 11/15/88 end of table. 364d 5.68% bill-3/ 17/88 6-3/8% note--3'31/89-W 6-3/4% note-3/31/91-M 7% note- 5(1 5/94-E 6.04% bill-4/16/87-reopening 6.75% bill-4/23/87-reopening 592% bill-4/ 14/88 7-1/8% 7-7/8% 8-1/2% 8-3/4% note-4/30/89-X nole-&'15/90-T note-5/15/97-A 2V 3y lOy bond-5/15/2017 30y 656% bill- 5/12/88 8% note-5'31/89-Y 8-1/4% note-8/15/92-K 6.54% 364d 2y 5y 364d bill-6/09/88 7-3/8% note-6/30/89-Z 7-7/8% note-6/30/91 8% note-7/16/94-F 364d 6.22% bill-7/07/88 7-5/8% note-7/31/89-AB 6.52% bill-8/04/88 7-7/8% 8-5/8% 8-7/8% 7-3/4% 8-3/8% 6.74% note-8/15/90-U note -8/1 5/97-B bond-8/15/17 note-8/31/89-AC note-l 1/1 5/92-L 364d 3y lOy 30y 2y 5y 7.32% 364d bill-9/01/88 8% nole-l1/15/90-V 8-7/8% note-l /1 5/97-C 8-7/8% bond-8/1 5/201 7-feopening 7-3/4% note- 1 1/30/89- AF 1 648% 4y 7y 2y 29y 2y 364d bill-1 1/26/88 2/22/88 7-7/8% note-l 2/3 1/89-AG bill- 6.67% 364d 1 8-1/4% nole-12/31/91-Q 8-5/8% note-1/15/95-E bill- 1/1 2y 4y 7y 9/89 7-3/8% 7-3/8% 8-1/8% 8-3/4% note-l/31/90-W note-2/16/91-R note-2/16/98-A bond-5/1 5/201 7-reopening 618% blll-2/15/e9 bill- 3/1 364d 22d 17d bill-4/21/88-reopening bill-4/13/89 364d bill-5/11/89 -5/1 5/91 -J-reopening 8-1/8% note 9% note- 5(16/98-8 9-1/8% bond-5/1 5/201 8-1/8% note-5/31/90-AB 8-3/4% note-8/16/93-L 6.94% bill-6/16/88-reopening 7.08% bill-6/0a'89 364d 2y 5y 9d 364d note-6/30/90-AC 8-1/4% note-6/30/92-N 7.04% bill-7/06'89 8-7/8% note -7/1 5/96-G 8-3/8% nOIe-7/31/90-AD 7.40% bill-8/03/89 8-3/4% nole-8/15/91-T 9-1/4% note-8/15/98-C 7.73% bill-4/20/89 8-5/8% note-8/31/90-AE 9% 364d 364d 248d note-l 1/16/93-1/ 7.72% 7.93% 7.48% bill-8/31/89 bill-9/22/88 bill-9/28/89 8-1/2% note-9/30/90-AF 8-3/4% note-9/30/92-P 8-5/8% note-10/15/95-H 7.57% bill-10/26/89 8-1/4% note-l 0/3 1/90-AG 8-1/2% nole-11/15/91-U 364d 20d 364d ^9,363 10,035 11,391 8.494 9,811 11.313 8.365 7,221 9.806 11,351 9,569 11,121 9,362 9,085 11,473 8,547 9.517 10,678 9,273 7,917 7,073 10,869 9,281 J 3.404 f 9,808 ^ 6,080 9,347 9,374 8,265 9,274 10,643 8,082 7,342 9,436 10,737 11,592 9.159 ^840 9,906 10,755 8,096 9,200 11,332 8,140 4,056 9,022 9,788 7,017 11,266 10,035 30,659 27.881 18,816 38,809 60,261 26,726 17,215 28,812 21,046 23.299 21,896 24,903 24,865 30,460 29,524 31.751 8% = 9,921 17,410 29,911 3y lOy 30y $9,549 11,839 8,550 7,336 11,006 6,009 9,788 11,662 11.993 33.878 29.698 22.911 364d 6/89 8-3/8% nole-4/16/95-F 7-5/8% note-4/30/90-Z 674% 26,910 18,013 20,326 24,693 33,132 20,899 22,756 32,207 21,353 16,690 22,937 24.776 18,478 29y 7-3/8% note -3/31 /90-Y 7-7/8% note-3/31/92-M 6.20% bill-4/21/88-reopening 636% 657% 29.645 23.299 17,664 24,536 31,621 2y 3y lOy 7-1/8% note-2/28/90-X 7-5/8% nole-6/16/93-K 6.30% 32.216 21 ,970 3y lOy 8-1/4% note-2/15/93-J 674% 18.594 26,726 26.035 24.952 20,964 20,285 21,046 29,401 23,975 29,624 29,018 26,158 19,096 32,978 30,286 41,783 36,302 25.640 30.138 25.791 364d bill-10/01/87 9-1/8% note-9/30/91-P 9-1/2% note -10/15/94-G 7-7/8% note-l 0/3 1/89-AE 6.45% bill-10/27/88 $41,793 33.120 25.588 26.954 34.347 33.081 19.901 8-1/2% note-9/30/89-AD of notes and bonds days) 3/12/87 Bills Ihe Public Debl] 22,274 33,430 18,233 25,693 31.783 35,207 20,695 25,672 37,088 21,818 32,584 40,570 28,503 34,265 23,513 16,138 27.507 25,136 28,326 J2,769 9,164 = '8,708 9,651 7,367 4,005 9.811 11,113 7,795 9,233 6.804 10,958 9.287 13.485 ^11,341 7,021 10,595 7,518 9.211 10,052 9,419 10,765 7,986 6,754 9,018 9.014 9,613 43 PUBLIC DEBT OPERATIONS Table PD0-3.--Public Offerings of Marketable Securities Other than Regular Weekly Treasury Bills-Con. [Dollar amounts Period to Description of securities 11/15/88 .11/15/88 ^11/22/88 11/25/88 11/30/88 12/01/88 12/22/88 1/D3/89 1/03/89 1/17/89 1/19/89 1/31/89 2/1 5/89 2/15/89 2/1 5/89 2/16/89 2/28/89 3/03/89 3/16/89 3/31/89 3/31/89 4/03/89 8-7/8% note- 1 1/1 5/98-D 8.07% bill--12/22/88 9% bond-1 1/15/18 7.92% bill- 11/24/89 8-7/8% note- 11/30/90- AH 8-7/8% note-2/1 5/94-H 8.49% bill- 12/2 845% bill-1/18/90 9% note-1/31/91V 9-1/8% note-2,15/92R 8-7/8% note-2/1 5/99A 8-7/8% bond-2/15/19 859% 8.68% bill- 3/1 9.64% lOy 30y 2/ 5y 2y 4y 7y 2y 3y 10/ 30y 2y 5y 5(90 9-3/4% note -3/31/91 9-5/8% note-3/31/93N bill-4/2(V89 of for bill-2/15'90 9-3/8% note-2/28/91W 9-1/2% note- 5/1 5/94J Range accepted bids 1/89 9-1/8% note -12/31/90-AJ 9-1/8% note-12/31/92-Q 9-1/4% note-1/15/96E millions] final (years months, days) 11/09/88 11/10/88 11/17/88 11/17/88 11/22/88 11/23/88 12/15/88 12/28/88 12/29/88 1/11/89 1/12/89 1/25/89 2/07/89 2/08/89 2/09/89 2/14/89 2/22/89 2/23/89 3/09/89 3/28/89 3/29/89 3/30/89 in maturity 2y 4y ^ notes and bonds $28,912 44 PUBLIC DEBT OPERATIONS Table PD0-3.--Public Offerings of Marketable Securities Other than Regular Weekly Treasury Bills-Con. ^^ 8.40% Yields accepted ranged (rem up to 8.42% (price 99,919) with the (price 99.955) at 8.41% (price 99.937). ^^ Yields accepted ranged from 8.76% (price 99.974) up to 8.77% (price 99.948) with the at 8.77% (price 99.948). average at 9.27% (price 99,871). ranged from 9.24% (price 100.064) up to 9.29% (price 99.743) with the ^* Ttie low. high, and average yield was 8.72% (price 99.829). ^' Yields accepted ranged from 9.03% (price 99.800) up to 9.04% (price 99.759) with the 9.04% (price 99.759). average at average at 8.53%. (price 99.946). ^ Yields accepted ranged '' from 8.52% (price 99.964) up to 8.53% (price 99.946) with the Yields accepted ranged fronn 8.74% (price 100.033) up to 8,77% (price 99.934) with the , at 8.76% (price 99.967). ^^ Yields accepted ranged from 8.72% (price 99.510) up to average at 8.73% (price 99.459). Yields accepted ranged from 8.31%. (price 99.891) up to 8.75% (pnce 99.356) with the average ^•^ at 8.33% (price 99.855). ^' Yields accepted ranged from 8.58% (price 99.792) up to 8.34% (price 99,837) with the 8.60% (price 99,740) with the average average '^^ at 8.59% (price 99.766). Yields accepted ranged from average at 8.94% (pnce 8.93% ^^ Yields accepted ranged from average at 9.10% (price 99.641) ''" at 8.88% at 8.97% 8.94% (price 99.576) with the 9.09% 1% (pries 98.869) with the 100.027) up to 8.89% (price 99.973) with the up to 8.98% (price 99.493) with the (price 99.072) up to 9.1 (price 99.991). Yields accepted ranged from average to (price 98.970). " Yields accepted ranged from 8.86% (price average up 99.576). 8.95% (price 99.534). (price 99.616) at 9.23% " at 9.22% 9.21% 9.29% 9.70% (price 99.795) with the (price 99.798) up to 9.30% (price 99.747) with the (price 99.892) up to 9.08% (price 99.857) with the (price 99.884) up to 9.19% (price 99.833) with the (price 99.859). ranged from 8.90% (price 99.837) up to 8,92% (price 99,706) with the (price 99.771). ranged from 8.90% (price 99.740) up to 8.95% (price 99.223) with the (price 99.636). ranged from 9.47% (price 99.831) up to 9.50% (price 99,777) with the average at 9,49% (price 99,795). "Yields accepted ranged from 9,48% average at 9,49%. (price 99,955). '\ields accepted ranged from 9.84% average at 9,87% (price 99,787), fields accepted ranged from 9,69% at 9.24% to (price 99,689). Yields accepted ranged from average up ranged from 9.19% (price 99.787) up to 9,22% (price 99,689) wrth the average at 9.30% (price 99.747). "Yields accepted ranged from 9.06% average at 9,08% (price 99,857). '\ields accepted ranged from 9.17% average at 9.18% 'Vields accepted average at 8.91% ^S'ields accepted average at 8.91% 'S-ields accepted (price 99.848) (price 99,81 3). ^ Yields accepted average average " Yields accepted *' Yields accepted ranged from average average (price 99,996) up to 9,49% (price 99.840) up (price 99,789) up to to 9.88% 9.70% (price 99,955) with the (price 99.769) with the (price 99.756) with the (price 99.756). Note. -All notes and bonds, except (or foreign-targeted issues, were sold at auction through competrtive and noncompetitive bidding. Foreign-targeted issues were sold at auction through corrpetitive bidding only. 45 PUBLIC DEBT OPERATIONS Table PDO-4.--Allotments by Investor Classes for Public Marketable Securities Part A--Other than Bills _^ [In Issues Description of securities millions of dollars] Allotments by investor classes Total Federal Commer- amount Reserve banks banks issued cial ^ 46 PUBLIC DEBT OPERATIONS Table PDO-4.--Allotments by Investor Classes for Public Marketable Securities--Con. Part B--Bills Other than Regular Weekly Series [Dollar amounts in millions] Allotments by investor classes Date of financing Date of maturity 3/19/87 4/16/87 5/14/87 6/11/87 7/09/87 8/06/87 9/03/87 10/01/87 10/29/87 11/27/87 12/24/87 3/17/88 4/14/88 5/12/88 6/09/88 7/07/88 8/04/88 9/01/88 9/29/88 10/27/88 11/25/88 12/22/88 1/21/88 2/18/88 3/17/88 4/14/88 5/12/88 6/09/88 7/07/88 8/04/88 9/01/88 9/29/88 10/27/88 11/25/88 12/22/88 1/19/89 2/16/89 3/16/89 4/13/89 5/1 1/89 6/08/89 7/06/89 8/03/89 8/31/89 9/28/89 10/26/89 1 1/24/89 1/19/89 2/16/89 3/16/89 Average Govl rate U.S. (percent) accounts and Federal Reserve banks 5.92 6.56 6.54 6.22 6.52 6.74 7.32 6.45 6.48 6.74 $9,550 9,790 10,041 9,812 9.807 9.574 9,524 9.281 9,284 9,373 9,275 $2,600 2,700 3,000 3.200 2,800 2,700 2,800 1,900 2,400 3,200 2,400 9,437 9,907 9,200 9,062 B,7S6 12«1/89 6.67 6.18 6.30 6.57 6.74 7.08 7.04 7.40 7.72 7.48 7.57 7.92 8.49 9,419 9,575 9,139 9,107 2,300 3,100 2,900 2,400 2,900 3,200 2,900 2,500 2,900 2,200 2,300 3,000 2,400 1/18/90 2/15/90 3/15/90 8.45 8.59 8.68 9,119 9,088 9.056 2,200 2,200 2,800 8,801 9,234 9,287 9,211 $205 1,393 2.179 1,525 2,337 1,399 422 1,484 2.096 120 1,184 264 1.577 1,218 1,359 1,722 1,072 419 634 1,281 1,253 2,044 1,071 547 484 1,304 $4,192 47 U.S. SAVINGS BONDS AND NOTES Series EE bonds, on sale since Jan. 1, 1980, are the only savings bonds currently sold. Series HH bonds are issued in exchange for series E and EE savings bonds and savings notes. Series A-D were sold from l^ar. 1, 1935, through Apr. 30, 1941. Series E vi^as on sale from May 1, 1941, through Dec. 31, 1979 (through June 1980 to payroll savers only). Series F and G were sold 1941, through Apr. 30, 1952. Series H was sold from June 1, 1952, through Dec. 31, 1979. Series HH bonds were sold for cash from Jan. 1, 1980. through Oct. 31, 1982 Series J and K were from f\/lay 1, sold from tVlay 1, 1952, through Apr. 30, 1957. U.S. savings notes were on sale May 1 1967, through June 30, 1970. The notes were eligible for purchase by individuals with the simultaneous purchase of series E savings bonds The principal , terms and conditions for purchase and redemption and information on investment yields of savings notes appear in the Treasury Bulletins of March 1967 and June 1968; and the Annual Report of the Secretary of the Treasury for fiscal year 1974. Table SBN-1 .-Sales and Redemptions by Series, Cumulative through Mar. 31, 1989 [In millions of dollars. Source: Monthly Stalemenl ot ihe Public Debt of Ihe United Slates; Market Analysis Section, United Stales Savings Bonds Division] Amount outstanding Accrued 48 U.S. SAVINGS BONDS AND NOTES Table SBN-3.--Sales and Redemptions by Period, Series E, EE, H, and [In millions of dollars. Source: Monlhly Slalemenl ol Ihe Public Debl of Ihe Redemptions Accrued discount HH Uniled Stales: Markel Analysis Section, Uniled Slates Savings Bonds Dwision] Sales plus accrued Sales discount price Exchange ot E bonds for H and HH bonds Amount outstanding Interest- Matured bearing debt non-interesl- bearing debt Series Fiscal years: 1941-86 1987 1988 231.407 10,317 7,264 CaleiKjar years: 1941-86 1987 1988 1988 -Mar Apr May June July Aug Sept Oct Nov Dec 1989 -Jan Feb Mar 236.358 7.022 7.407 706 681 655 615 563 582 519 548 587 667 BOB 691 713 Fiscal years: 1952-B6 19B7 1988 13,619 -38 Caleridar years: 1952-86 1987 1988 1988 - 13.629 40 -56 Mar 22 Apr -19 -10 -19 13 May June July Aug -6 Sept Oct -4 Nov Dec 1998 -Jan Feb Mar 5 1 24 3 4 -19 94.787 E and EE 49 OWNERSHIP OF FEDERAL SECURITIES INTRODUCTION Federal securities presented in these tables comprise public debt securities issued by the Treasury and debt issued by other Federal agencies under special financing authorities. See the Federal debt (FD) series of tatjies for a more complete description of the Federal debt. Table OFS-l.-Distribution of Federal Securities by Class of Investors and Type of Issues Holdings of Treasury marketable and nonmarketable securities and of debt issued by other Federal agencies are presented for Government accounts, the Federal Reserve banks, and private investors. Government account holdings largely reflect investment by the social security and Federal retirement trust funds. The Federal Reserve banks acquire Treasury securities in the market as a means of executing monetary policy. Table OFS-2.-Estiniated Ownership of Public Debt Securities Held by Private Investors Privately held Treasury securities are those held by investors other than the Government accounts and Federal Reserve banks Treasury obtains information on private holdings from a variety of sources, such as data gathered by the Federal financial institution regulatory agencies. State and local holdings and foreign holdings include special issues of nonmarketable securities to municipal enti- and foreign official accounts, as well as municipal and foreign and private holdings of marketable Treasury securities. Data on foreign holdings of marketable Treasury securities are presented ties official the capital movements tables in the Treasury Bulletin. footnotes for descriptions of the investor categories. in See the 50 OWNERSHIP OF FEDERAL SECURITIES Table OFS-1 ."Distribution of Federal Securities by Class of Investors and Type of Issues [In millions of dollars. Source: Financial Management Service] Interest-bearing public debt securities Total Endol fiscal or year month 51 OWNERSHIP OF FEDERAL SECURITIES Table 0FS-2."Estimated Ownership of Public Debt Securities by Private Investors [Par values ^ in billions of dollars. Source: Office ot Market Finance] Nonbank Total Comme privately cial held banks Sav- ^ ings Other secu- bonds rities investors Insurance Money Stale conpanies market funds and local govern- ments 1981-June Dec 651.2 694.5 119.7 111.4 531.5 1982-Mar 733.3 740.9 791.2 848.4 116.1 116.1 112.5 117.8 131.4 617.2 624.8 673.4 717.0 906.6 948.6 982.7 June Sept Dec 1983- Mar June Sept 583.1 107.4 110.8 114.1 115.6 116.5 67.5 67.4 67.6 68.3 45.0 46.7 48.0 48.2 25.7 22.4 38.6 42.6 16.9 17.6 21.6 24.5 99.0 103.3 109.0 115.0 136.1 137.2 140.6 149.5 209.4 224.8 49.6 54.0 58.5 65.3 44.8 28.3 27.2 32.8 35.9 39.7 123.0 127.4 137.0 149.0 156.2 235.9 160.1 160.1 253.1 22.8 166.3 263.8 257.3 19.4 14.9 13.6 42.6 45.3 47.7 25.9 50.1 155.0 162.9 170.0 173.0 166.3 171.6 175.5 192.9 294.5 315.7 363.8 376.3 26.7 24.8 22.7 25.1 50.8 54.9 59.0 59.0 177.0 190.3 203.0 226.7 186.4 200.7 209.8 212.5 403.8 401.9 417.3 462.4 32.1 35.8 38.6 44.1 Dec 1,022.6 153.2 171.6 176.3 188.8 753.4 777.0 806.4 833.8 116.7 121.3 129.0 133.4 1984 -Mar 1.073.0 1,102.2 1,154.1 1,212.5 192.9 185.4 184.6 186.0 880.1 136.2 142.2 142.4 143.8 72.2 72.9 73.7 74.5 64.0 69.3 68.7 69.3 66.1 1,254.1 197.8 201.6 203.6 145.1 75.4 76.7 78.2 79.8 69.7 72.0 73.2 75.0 66.5 198.2 1,056.3 1,090.4 1,134.6 1,219.0 1.502.7 1 ,553.3 1,602.0 201.7 200.6 200.9 203.5 1.271.4 1,302.1 1 ,352.4 1,398.5 157.8 159.5 1 58.0 162.8 81.4 83.8 76.4 75.7 70.9 70.5 84.0 88.6 96.4 105.6 29.9 22.8 24.9 28.0 59.6 61.2 65.7 68.8 1,641.4 1,657.7 1,682.6 1,745.2 199.9 199.3 205.0 201.2 1,441.5 1,458.4 1,477.6 1,544.0 163.0 165.4 168.9 173.4 94.7 96.8 98.5 68.3 68.6 70.4 72.3 112.2 112.2 118.4 120.6 18.5 20.6 15.2 73.5 79.7 81.8 84.6 201.0 202.5 203.0 p 195.0 1,577.2 1,582.4 1,616.0 1,657.8 176.7 72.7 73.9 76.7 125.5 132.2 135.0 Dec 1.778.2 1.784.9 1,819.0 1.852.8 1989- Mar 1,900.2 n.a. n.a. n.a. June Sepi Dec 1985 -Ma; June Sept Dec 1986- Mar June Sept Dec 1987- Mar June Sept Dec 1988- Mar June Sept ^ 1,292.0 1,338.2 1,417.2 1,473.1 U.S. savings bonds, series A-F and J, 916.8 969.5 1,026.5 148.7 151.4 154.8 180.1 184.5 187.4 47.9 51.6 58.4 61.9 87.1 92.3 101.1 104.0 106.2 107.8 109.6 are included at current redemption value. US. branches and agencies of foreign banks. York investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks. ^ Includes partnerships and personal trust accounts. Includes domestically chartered banks. New Includes U.S. savings notes. Sales began May 1970. Exclusive of banks and insurance conpanies. 1, 1967, and were discontinued June 30. 64.2 56.5 64.5 69.1 71.4 78.5 22.1 14.3 14.9 13.1 10.8 225.6 217.9 227.1 237.1 251.2 262.8 253.4 251.6 496.6 505.8 502.8 518.9 264.6 268.7 273.0 282.6 260.3 268.6 267.0 287.3 549.4 543.2 553.3 581.2 285.8 286.3 287.0 321.0 332.8 333.3 349.5 570.3 551.4 579.4 p77.8 Includes State and kjcal pensbn 194.9 194.4 funds. Consists of the investment of foreign balances and international accounts Slates. Estimates reflect ® Includes savings and 1978 benchmark from December 1978 toan associations, credit unions, savings banks, corporate pension trust Ihe United institutrans, funds, dealers and brokers, certain deposit accounts, and Government-sponsored agencies. in to date. nonprofit mutual Government 52 MARKET YIELDS INTRODUCTION The tables and charts in this section present yields on Treasury marketable securities and compare long-term Treasury market yields on long-term corporate and municipal securities. with yields a consistent data series Yields on Treasury bills, which are discount securities, are the coupon equivalent yields of bank discount rates at which Treasury bills trade in the market The Board of Governors of the Federal Reserve System also publishes the Treasury constant maturity data senes in its weekly H 15 press release. Tabic IVIY-I.--Trcasury Market Bid Yields at Constant Maturities: Bills, Notes, and Bonds presented in the chart that accompanies table MY-1, is based on current market bid quotations on the most actively traded Treasury securities as of 3:30 p.m each business day. The Treasury obtains quotations from the Federal Reserve Bank of New York, which composites quotations provided by five primary dealers. This yield curve reflects yields based on semiannual interest payments and is read at constant maturity points to develop The Treasury yield curve, Table MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds rate The long-term Treasury rate is the 30-year constant maturity presented in table t^^Y-1 The corporate and municipal bond . new See the series are developed by the Treasury, using reoffering yields on long-term securities rated Aa by Moody's Investors Service. footnotes for further explanation. 53 MARKET YIELDS Treasury Market Bid Yields at Constant Maturities, 1982-88 54 MARKET YIELDS Table MY-1 .--Treasury Market Bid Yields at Constant Maturities: Bills, Notes, and Bonds* [Source: Office ot Markel Finance] Date 3-mo. 6-mo. 1-yr. 2-yr. 3-yr. 5-yr. 7-yr. 10-yr. 30-yr. Monthly average 1988- Apr May June July Aug Sept Oct Nov Dec 1989- Jan Feb Mar End of 6.50% 7.01% 7.59% 7.83% 8.19% 8.52% 872% B.95% 6.44 6.66 6.94 7.29 7.47 7.59 8.02 8.34 8.55 8.84 9.14 6.88 7.04 7.35 7.78 7.82 7,90 8.30 7.40 7.49 7.75 8.17 8.09 8.00 8.03 8.28 8.63 8.46 8.35 8.67 9.09 9.18 9.37 9.68 8.24 8.58 8.49 8.66 8.94 8.69 8.89 8.78 9.09 8.92 9.06 9.26 8.98 8.80 8.96 9.23 9.00 9.14 9.32 9.06 8.89 9.02 7.73 r8.70 8.85 9.05 9.39 8.11 8.48 8.99 9.05 9.25 9.57 8 22 8.44 8.77 8.57 8.43 8.72 8.51 9.20 9.32 8.79 9.09 9.15 9.27 9.61 9.51 7.98 8,44 8,18 8,57 8.83 8,52 8.32 8.87 9.18 9.13 9.43 9,66 8,33 8,73 9.11 8.91 9.13 8.87 8.69 8.89 9.13 9.14 9.23 9.43 9.11 9.01 9.09 9.17 9.36 8.93 8.87 9,20 8,82 9,12 9.25 8,87 8.65 9.06 9.14 9.09 9.32 9.11 8,98 8.74 9.07 9.00 8.93 9,14 9,X 9,11 9.01 9.17 month 1988-Apr May June July Aug Sept Oct Nov Dec 1989 -Jan Feb Maf * 6.08% 6.15 6.62 6,76 7,17 7.54 7,48 7,60 8.10 8.37 8.69 9.03 9,22 Rates are from the Treasury yield curve. 6.66 7,18 7,04 7,49 7.89 7,85 7,88 8.42 r8.66 8.92 9.24 9,54 7.14 7,66 7,50 7,90 8.28 8,13 8.06 8.62 9.02 9.04 9.40 9,64 8,21 8,02 8,39 8.71 8,43 8,25 8.84 9.14 9.12 9.55 9,73 8,41 8,75 8.95 8,61 8.37 8.91 9.14 9.08 9 42 9 53 8.65 9,03 8,70 8,98 9.13 8,78 8.52 9.02 9.18 9.14 9.39 9,40 9,30 8,87 9.23 9,31 55 MARKET YIELDS u DC LU 1 56 MARKET YIELDS Table MY-2.--Average Yields of Long-Term Treasury, Corporate, and Municipal Bonds [Source: Oftice Treasury ol Market Finance] 57 MARKET YIELDS AVERAGE YIELDS OF LONG-TERM TREASURY, CORPORATE, AND MUNICIPAL BONDS Monthly Averages 20 Treasury 30-Yr. Bonds 16 Aa Municipal Bonds - Aa Corporate Bonds 12 - 4- l i iii|iiiiiiiiiii iii i i i i iiii|i iii ii i i iii |i iiiiiii ii i|iiiii ii iii | 79 80 81 82 83 n iiiiiiiii 84 i i| iiii| i i iiiii[iiiii iii [11111 I 85 CALENDAR YEARS 86 87 88 89 58 FEDERAL AGENCIES' FINANCIAL REPORTS INTRODUCTION Section 114 of the Budget and Accounting Procedures Act of (31 use. 3513a) requires tfie Secretary of the Treasury to prepare reports on the financial operations of the U.S. Government and provides that each executive agency must furnish the Secretary of the Treasury such reports and information relating to the agency's financial condition and operations as the Secretary may require. The provisions do not apply to the legislative and judicial branches of the Federal Government; however, these entities are encouraged to submit the prescribed reports so the Secretary of the Treasury can prepare comprehensive reports on all the financial activities of the 1950 U.S. Government. Manual (I TFM 2-4100) sets the criteria annual and quarterly financial reports in accordance with the Reporting Entities Listing (Bulletin No. 88-11). Reports are provided for six fund types; Revolving funds, trust revolving funds, 15 major trust funds, all other trust funds, all other activity combined, and consolidated reports of an organizational unit. The financial transactions supporting the required reports are to be accounted for on the accrual basis. The Report on Operations can be submitted on a cash basis under certain circumstances (see TFM 2-4180.20). Reports are to be prepared from a budgeting and accounting system which contains an integrated data base that is part of the agency's integrated financial management system as required by the Office of Management and Budget (OMB) Circular No. A-127. The Treasury for the submission Financial of conducted in the territories or overseas, and any monetary assets or property received, spent, or otherwise accounted for by the reporting entity. Amounts are reported to the dollar. tions Requirements provide that Federal agencies submit to Treasury four financial reports supplemented by three supporting reports which are consolidated and published annually in the winter issue of the Treasury Bulletin. These reports are; Report on Financial Position (SF 220), Report on Operations (SF 221), Report on Cash Flow (SF 222), and Report on Reconciliation (SF 223). The three supporting reports are; Direct and Guaranteed Loans Reported by Agency and Program Due from the Public (SF 220-8), Report on Accounts and Loans Receivable Due from the Public (SF 220-9), and Additional Financial Information (SF 220-1). The report on Direct and Guaranteed Loans is submitted to Treasury quarterly, and annually for publication in the Treasury Bulletin. The Report on Accounts and Loans Receivable Due from the Public is submitted quarterly on a selected basis, and by all entities annually. Information captured in the SF 220-8 is shown in the following table; I The required equities relating to reports should include all programs and all assets, activities liabilities, under control and of the reporting entity, except for the assets of disbursing officers, which are reported by the Treasury. Reports should include transfer appropriation accounts from other agencies, foreign currencies, opera- Table FA-2.--Direct and Guaranteed Loans This report reflects the direct loans and guaranteed loans to the Program to support credit activities. Actual control of credit program levels remains with authorizing legispublic through the Federal Credit and appropriations acts. The report on Direct and Guaranteed Loans also provides the Federal Reserve Board information to monitor the flow of funds. An accompanying chart depicts direct loans and guaranteed loans for the first quarter of fiscal 1 989. lation 59 FEDERAL AGENCIES' FINANCIAL REPORTS Table FA-2.— Direct and Guaranteed Loans, Dec. 31, 1988 (In thousands of dollars. Source: SF 220-8; compiled by Financial Management Direct loans or credit Agency and program I— Wholly owned Government Amount Maximum outstanding authority outstanding auttiority to the President: 1,660,544 Foreign military sales credit Military sales credit to Israel Emergency security assistance to Israel Housing and other credit guaranty programs Alliance for Progress loan fund Other programs Overseas Private Investment Corporation Total Department Funds appropriated to the President of Agriculture: Commodity loans Rural electrification and telephone revolving fund Rural Telephone Bank Rural communication development fund Agricultural credit insurance loans Rural development insurance loans Rural housing insurance loans Self help housing development loans Rural development loans Other Farmers Home Administration loans Total Department Department of of Agriculture Commerce: Economic Development loans Coastal energy impact fund Federal ship financing fund Other loans Total Department of Commerce , or insurance Maximum enterprises Guaranty reserve fund Guarantees Amount U.S. dollar loans Funds appropriated Service] 60 FEDERAL AGENCIES' FINANCIAL REPORTS Table FA-2.— Direct and Guaranteed Loans, Dec. 31, Direct loans or credit Agency and program I— Wholly owned Government Maximum Amount Maximum outstanding authority outstanding auttiority enterprises of Defense: Army loans Total Department Department of College fiousing loans Higher education facilities loan and insurance fund Other loans Total Department 550 Defense of Education: Department of Bonneville ... of Education Energy: Power Administration loans Other loans Total Department Department of Health of Energy and Human Services: Health professions graduate student loan fund Medical facilities guarantee and loan fund Student loan program Other Health Resources and Services Administration loans Nurse training fund Health maintenance organization loan fund Total Department of Health and Human Services Housing and Urban Development: Federal Housing Administration fund Housing for the elderly or handicapped Low-rent public housing program Other housing loans Guarantees of mortgage-backed securities Department of Rehabilitation loan fund Urban renewal programs Community disposal operations fund Community planning and development loans Nonprofit sponsor assistance Other loans Department Development Total of Housing and Urban . Guarantees or insurance Amount U.S. dollar loans Department 1988— Con. 61 FEDERAL AGENCIES' FINANCIAL REPORTS Table FA-2.— Direct and Guaranteed Loans, Dec. 31, Direct loans or credit Agency and progrann I— Wholly owned Government Maximum Amount Maximum outstanding authority outstanding auttiority enterprises Indian affairs revolving fund for loans Indian loan guaranty and insurance fund Guam Power Authority Virgin Islands construction Total Department of the Interior Department of Labor: Pension Benefit Guaranty Corporation Total Department Labor of Department of State: Emergencies in diplomatic and consular service Loans to the United Nations Total Department Department of State of Transportation: — Federal Highway Administration right-of-way revolving fund Highway trust fund Federal Railroad Administration loans Urban Mass Transportation loans Maritime Administration Federal ship financing fund — Total Department of Transportation Department of the Treasury: Federal Financing Bank Loans governments Department of the Treasury to foreign Total Environmental Protection Agency: Loans Total Environmental Protection Agency General Services Administration: Federal buildings fund Other funds Total General Services Administration Small Business Administration: Business loans Disaster loan fund Other loans Total Small Business Administration Guarantees or insurance Amount U.S. dollar loans Department of the Interior: Reclamation protects 1988— Con. 81,846 101,784 15,542 62 FEDERAL AGENCIES' FINANCIAL REPORTS Table FA-2.— Direct and Guaranteed Loans, Dec. 31, Direct loans or credit Agency and program I— Wholly owned Government Maximum Amount Maximum outstanding authority outstanding authority enterprises Compensation and benefits Other loans Total Veterans Administration Other Independent agencies: Loans to DC. Government Export-Import Bank of the United States Federal Savings and Loan Insurance Corporation... National Credit Union Administration Tennessee Valley Authority Total Other independent agencies Total Part I II— Wholly owned Government enterprises Loans repayable in foreign currencies Loans Repayable Agency in Foreign Currencies, for International Development Agency United States Information Total Part Ill— Privately II owned Government-sponsored enterprises Privately Owned Government - Sponsored Enterprises: Student Loan Marketing Association Federal National Mortgage Association Banks for cooperatives Federal land banks Federal home loan banks Federal Home Loan Mortgage Corporation Total Part Grand III total, all parts Guarantees or insurance Amount U.S. dollar loans Veterans Administration: Loan guaranty revolving fund Direct loan revolving fund Service-disabled veterans insurance fund Veterans reopened insurance fund Vocational rehabilitation revolving fund Education loan fund Other trust funds National service life insurance fund Veterans special life insurance fund 1988— Con. 1,300,687 63 FEDERAL AGENCIES' FINANCIAL REPORTS DIRECT AND GUARANTEED LOANS, DEC. 31, Wholly owned Government Enterprises--U.S. Dollar Loans Agriculture Direct Loans Educatioi Eximbank- 12% Agriculture 2% Guaranteed Loans 1988 INTERNATIONAL STATISTICS 67 INTERNATIONAL FINANCIAL STATISTICS The tables in this reserve assets and section are designed to provide data on U.S. liabilities and other statistics related to the U.S. Table IFS-2 brings together statistics on liabilities to foreign offiand selected liabilities to all other foreigners, which in the U.S. balance of payments statistics. cial institutions, balance of payments and international financial position. are used cluding Table IFS-1 shows the reserve assets of the United States, inits gold stock, special drawing rights held in the Special in the International Monetary Fund, holdings of convertible foreign cun-encies, and reserve position in the International Monetary Fund. notes issued to Drawing Account countries. Table IFS-3 shows U.S. Treasury nonmarketable bonds and official of the U.S. dollar. Table IFS-1 .--U.S. Reserve Assets millions of dollars] Special End of calendar year or month and other residents of foreign Table IFS-4 presents a measure of the general foreign ex- change value [In institutions drawing rights ' * ' 68 INTERNATIONAL FINANCIAL STATISTICS Table IFS-2.-Selected U.S. Liabilities to Foreigners [In millions of dollars] Liabilities To foreign countries Liabilities to Official institutions Mari«table U.S. End Treasury of reported calendar year or by banKs Total Total (1) (2) bonds Ottier NonmarketableU.S. Treasury t)onds and notes 3 (5) readily marketable Liabili- liabili- ties to banks 5 69 INTERNATIONAL FINANCIAL STATISTICS These indices are presented to provide measures of the general exchange value of the dollar that are broader than those provided by single exchange rate levels. They do not purport to represent a guide to measuring the impact of exchange rate levels foreign on U.S. international transactions. The indices are computed as geometric averages of individual currency levels with weights derived from the share of each country's trade with the United States during 1982-83. These series replace indices previously appearing in the Treasury Bulletin which calculated the trade-weighted arithmetic average of percentage changes in exchange rates. The current series should be more robust than previous ones although for small smooth changes in exchange rates the two sets of calculations yield the same information. Table IFS-4.--Trade-Weighted Index of Foreign Currency Value of the Dollar [Source: Office o) Foreign Exchange Operations-lnlernalional Attairs] Date Annual average (1980= 100)2 1979 1980 98.8 100.0 1981 109.1 1982 1983 1984 1985 1986 1987 1988 119.7 End 1252 133.5 139.2 119.9 107.5 100.4 of period (Dec. 1980 = 100) 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 98.4 1988 -Apr May June. . . July Aug Sept Od Nov .... Dec 97.5 98.5 101.4 102.2 103.5 103.0 99.3 96.8 98.4 99.9 1989 -Jan Feb pg9.8 Ma/ PlOl.5 Apr P101.1 ' Each index covers (a) 22 currencies of countries represenled in the Organization lor Economic Cooperation and Development (OECD): Australia. Austria, Belgium-Luxembourg. Canada. Denmark, Finland. France. Germany. Greece, Icela/id, Ireland. Italy. Japan, the Netheriands, New Zealand, Norway, Ponugal. Spain. Sweden. Switzeriand, Turkey, and the United Kingdom; and (b) currencies of 4 major trading economies outside the OECD: Hong Kong. Korea, Singapore, and Taiwan. Exchange rales are drawn from the International Monetary Fund's "International Financial Statistics' when available. 2 Index includes average annual rates as reported in "Inlernalional Financial Statistics.' 70 CAPITAL MOVEMENTS INTRODUCTION liackground Data and movements between the United States have been collected in some form since 1935, relating to capital foreign countries Reports are filed with district Federal Reserve banks by commercial banks, other depository Institutions, bank holding companies, securities brokers and dealers, and nonbanking enterprises in the United States. Statistics on the principal types of data by country or geographical area are then consolidated and are published in the Treasury Bulletin. The and used in the Treasury System have been revised a number of times to meet changing conditions and to increase the usefulness of the published statistics. The most recent, general reporting forms instructions! International Capital (TIC) Reporting revision of the report forms became effective with the banking and with the nonbanking reports as of 1978 Revised forms and instructions are developed Government agencies and the Federal Reserve System and in consultations with representatives of banks, securities firms, and nonbanking enterprises. reports as of April 30, 1978, December United States, including the branches, agencies, subsidiaries, and other affiliates in the United States of foreign banking and nonbanking firms. Entities that have reportable liabilities, claims, or securities transactions below specified exemption levels are exempt from reporting. Banks, other depository institutions, and some brokers and dealers file monthly reports covering their dollar liabilities to, and dollar claims on, foreigners in a number of countries. Twice a year, as of June 30 and December 31, they also report the same liabilities and claims items with respect to foreigners in countries not shown separately on the monthly reports, Quarteriy reports are filed with respect to liabilities and claims denominated in foreign currencies ws-a-ws foreigners. Etfecfive January 31, 1984, the specified exemption level applicable to the monthly and quarteriy banking reports was raised from $10 million to $15 million. There is no separate exemption level for the semiannual reports. 31, with the cooperation of other Banks, other depository institutions, securities brokers and and other enterprises report monthly their transactions in long-term securities with foreigners. The applicable exemption level is $500,000 with respect to the grand total of purchases and to the grand total of sales during the month covered by the report. dealers, Basic Definitions Quarteriy reports are filed by exporters, importers, industrial The term "foreigner" as used in the Treasury reports covers all institutions and individuals domiciled outside the United States, including U.S. citizens domiciled abroad, and the foreign branches, subsidiaries, and other affiliates abroad of U.S. banks and business concerns; the central governments, central banks, and other official and commercial concerns, institutions of foreign countries, wherever located; and international and regional organizations, wherever located. The term "foreigner" Nonbanking enterprises also report for each monthend their U.S. dollar-denominated deposit and certificates of deposit claims of $10 million or more on banks abroad also includes persons known by in the United States to the extent that they are reporting institutions to be acting on behalf Data pertaining to branches or agencies of foreign opposite the country to which the official official institution belongs. Data pertaining to international and regional organizations are reported opposite the appropriate international or regional classification except for the Bank for International Settlements, which is included in the classification "Other Europe." Reporting Coverage Reports are required from banks, other depository institutions, bank holding companies. International Banking Facilities (IBF's), securities brokers and dealers, and nonbanking enterprises in the Copies Management. o1 the reporting Office of tfie forms and instructions may be obtained from the Oftice ol Assistant Secretary for international Affairs. Department of Treasury. Wastiington, D.C. 20220, or from district financial institutions other than banks, institutions, brokers, and other nonbanking liabilities to, or claims on, unaftiliated foreigners at quarterend exceed specified exemption levels. Effective f^arch 31, 1982, this exemption level was set at $10 million, up from $2 million. of foreigners. In general, data are reported opposite the foreign country or geographical area in which the foreigner is domiciled, as shown on the records of reporting institutions. For a number of reasons, the geographical breakdown of the reported data may not in all cases reflect the ultimate ownership of the assets. Reporting institutions are not expected to go beyond the addresses shown on their records, and so may not be aware of the country of domicile of the ultimate beneficiary. Furthermore, U.S. liabilities arising from deposits of dollars with foreign banks are reported in the Treasury statistics as liabilities to foreign banks, whereas the liability of the foreign bank receiving the deposit may be to foreign official institutions or to residents of another country. institutions are reported other depository enterprises if their Federal Reserve banltt. Ifte Description of Statistics Section presents data on liabilities to foreigners reported by banks, other depository institutions, brokers, and dealers in the United States. Beginning Apnl 1978, the following major changes were made in the reporting coverage; Amounts due to banks' own foreign offices are reported separately; a previous distinction between short-term and long-term liabilities was eliminated; a separation was provided of the liabilities of the respondents themselves from their custody liabilities to foreigners; and foreign currency liabilities are only available quarteriy. Also, beginning April 1978, the data on liabilities were made more complete by extending to securities brokers and dealers the requirement to report certain of their own liabilities and all of their custody liabilities to foreigners. Effective as of January 31 1985, savings and loan associations and other thrift institutions began to file the TIC banking forms. Previously they had reported on TIC forms for nonbanking enterprises. I , Section II presents the claims on foreigners reported by banks, other depository institutions, and brokers and dealers in the United States Beginning with data reported as of the end of April 1978, a distinction was made between banks' claims held for their own account and claims held for their domestic customers The former are available in a monthly series whereas the latter data are collected on a quarteriy basis only. Also, the distinction in reporting long-term and short-term components of banks' claims was discontinued, fvlaturity data began to be collected quarterly on a time remaining to maturity basis as opposed to the historic onginal maturity classitication. Foreign currency claims are also collected on '^^'^quarteriy basis only. Beginning March 1981, this claims coverage of 71 CAPITAL MOVEMENTS was extended to certain the United States. reporting of items in See notes and dealers in above concerning the the hands of brokers to section I thrift institutions. Another important change in the claims reporting, beginning quarterly data as of June 30, 1978, was the adoption of a broadened concept of "foreign public borrower," which replaced the previous category of "foreign official institution" to produce more meaningful information on lending to the public sector of foreign countries. The term "foreign public borrower" encompasses central governments and departments of central governments of foreign countries and of their possessions; foreign central banks, stabi- with claims held through banks in the United States. Beginning with data reported as of December 31, 1978, financial liabilities and claims of reporting enterprises are distinct from their commercial liabilities and claims; and items are collected on a time remaining to maturity basis instead of the original maturity basis used previously. new lization funds, and exchange authorities; corporations and other agencies of central governments, including development banks, development institutions, and other agencies which are majorityowned by the central government or its departments; State, and local governments of foreign countries and their departments and agencies; and any international or regional organization or subordinate or affiliated agency thereof, created by treaty or convention between sovereign states. provincial, III includes supplementary statistics on U.S. banks' and claims on, foreigners. The supplementary data on banks' loans and credits to nonbank foreigners combine selected information from the TIC reports with data from the monthly Federal Reserve 2502 reports submitted for major foreign branches of U.S. banks. Other supplementary data on U.S. banks' dollar liabilities to, and banks' own dollar claims on, countries not regularly reported separately are available semiannually in the June and December Section V contains data on transactions in all types of long-term domestic and foreign securities by foreigners as reported by banks, brokers, and other entities in the United States (except nonmarketable U.S. Treasury notes, foreign series; and nonmarketable U.S. Treasury bonds and notes, foreign currency sehes, which are shown in the "International Financial Statistics" section, table IFS-3). The data cover new issues of securities, transactions in outstanding issues, and redemptions of securities. They include transactions executed in the United States for the account of foreigners, and transactions executed abroad for the account of reporting institutions and their domestic customers. The data include some transactions which classified as direct investments Also, see notes for section the reporting of institutions. The Section liabilities to, are payments accounts. thrift in I the balance of above concerning breakdown of the data on securities shows the country of domicile of the foreign buyers and geographical transactions in the case of outstanding issues, this may from the country of the original issuer. The gross figures some offsetting transactions between foreigners. The net figures for total transactions represent transactions by foreigners with U.S. residents; but the net figures for transactions of individual countries and areas may include some transactions between sellers of the securities; differ contain issues of the Treasury Bulletin. foreigners of different countries. Section IV shows the liabilities to, and claims on, unaffiliated foreigners by exporters, importers, industrial and commercial concerns, financial institutions other than banks, other depository institutions, brokers, and other nonbanking enterprises in the United States. The data exclude the intercompany accounts of nonbanking enterprises in the United States with their own branches and subsidiaries abroad or with their foreign parent companies. (Such transactions are reported by business enterprises to the Department of Commerce on its direct investment forms.) The data also exclude The data published in these sections do not cover all types of reported capital movements between the United States and foreign countries. The principal exclusions are the intercompany capital transactions of nonbanking business enterprises in the United States with their own branches and subsidiaries abroad or with their foreign parent companies, and capital transactions of the U.S. Government. Consolidated data on all types of international capital transactions are published by the Department of Commerce in its regular reports on the U.S. balance of payments. 72 CAPITAL Section I. — Liabilities to Table MOVEMENTS Foreigners Reported by Banks CM-l-1. - Total Liabilities by Type in the United States of Holder [In mill ions of dollars] Int liabiliti foreiqne reported by IBF' Total Official institutions Banks and other foreigners 1/ Payable End of Total calendar year or month liabilities (I) 1985 1986r 1987 1988 1988-Mar.r Apr.r May r June r July r Aug.r Sept.r Oct.r Nov Dec 1989-Jan Feb.p Mar.p Payable Total (2) in foreign curren- dollars cies2/ (3) 451,094 570,698 674,312 756,085 79,985 103,569 120,667 135,229 79.985 103,569 120,667 135,229 661.914 667,537 685,412 692,513 709,709 712,864 718,662 713,176 739,458 756,085 732,918 749.206 761,270 125.710 124,833 128,107 126,149 128,827 129,479 129,365 135,610 138,930 135,229 135,201 132,760 128,522 125,710 124,833 128,107 126,149 128,827 129,479 129,365 135,610 138,930 135.229 135,201 132,760 128,522 Payable Payable Total (4) (5) - - - - in foreign curren- dollars cies^/ (6) (7) Payable Payable foreign curren- Payable in in foreign curren- dollars cies^/ dollars cies^/ (8) (9) 349,920 431,620 493,743 546,631 15,365 29,660 55,339 70,902 5,824 5.849 4,563 3,323 5,821 5.807 4,464 3,224 529,524 537,351 549,717 557,823 573,085 577,850 581,629 571,370 595.463 617.533 594,914 613,094 628.674 473,685 481.511 493,877 503,350 518,613 523.378 520,405 510,145 534,239 546.631 524,013 542.192 557.772 55,840 55,840 55,840 54,472 54,472 54.472 61,225 61,225 61,225 70,902 70,902 70.902 70,902 6,679 5,353 7,588 8,541 7,796 5,534 7,668 6,196 5,065 3,323 2,804 3,352 4,074 6,601 5,275 7,510 8,462 7,717 5.454 7,581 6,109 4,978 3,224 2,704 3.253 3,975 ternational Settlements. rnational Bank for Reconstruction and 1 n ter- Ameri can Development Bank. of preceding quarter for non-quarter-end months. liabilities include liabilities previously s Payable Total 365,285 461,280 549,082 617,533 ent and the -Total to all (101 (111 3 42 99 99 78 78 78 80 80 80 87 87 87 99 99 99 99 (12) 183.175 226,607 261,987 279,668 10.191 22,387 45,225 56.146 245,157 241,552 248,793 259,230 262,614 267.625 267,479 262,392 275,522 279,668 270,302 281,996 293,782 46.124 46,124 46,124 45,036 45.036 45,036 50,920 50,920 50,920 56,146 56.146 56.146 56,146 reports filed by banks. The maturity distinction was discontinue with new reports filed as of Apr. 30, 1978, and historical series adjusted accordingly. See introductory text to Capital Movements tables for discussion of changes in reporting. 73 CAPITAL MOVEMENTS TO FOREIGNERS CALENDAR YEARS 1984-89 LIABILITIES Reported by International Banking Facilities and by Banks in the United States 800 750 - 700 - International n 650 Banking Facilities -i Banks B 600 - i I ' 550 ^ 500 -i I O 450 -. n S 400^ 350 -^ f 300 -i D 250 - 200 - o o ' 150 -i a r 100 ^ s 50 - oi 1984 1985 1986 1987 END OF PERIOD 1988 1989, 1st Qtr. 74 CAPITAL MOVE^flENTS Table CIVI-l-2. - Total Liabilities by Type, Payable Part A - Foreign Countries [In mill ions of dol lars] in Dollars 75 CAPITAL MOVEMENTS Table CM-l-3. - Total Liabilities by Country 'osition at end of period in milHons of dollars Finland France German Democratic Rcpubl Germany Greece Hungary Ireland Italy 13.325 5.342 1.369 Netherlands Norway Poland Portugal SfiU. .'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. Sweden Switzerland Turkey United Kingdom U.S.S.R Jugoslavia Other Europe 901 Total Europe anada atin America and Caribbea Argentina Bahamas Bermuda Brazil British West Indies Chile Colombia Cuba Ecuador Guatemala Jamaica Mexico Netherlands Antilles Panama Peru Trinidad and Tobago Uruguay Venezuela Other Latin America and Caribbean 4,829 74,393 2,997 Total Latin America and Caribbean China: lainland Taiwan "ong Kong India Indonesia Israel Japan Korea Lebanon Malaysia Pakistan Philippines Singapore Syria Thailand Oi 1-exporting countries Other Asia Total 1,476 18,911 10,993 676 1,548 1,897 58.121 1.145 Asia frica: E gy Pt Ghana Liberia Morocco South Africa Zaire Oil-exporting countries Other Africa Total ' Africa ther countries: Australia All other Total other countries. Total . foreign countries nternational and regional International European regional.. 4,648 77 1,047 Asian regional African regional Middle Eastern regional. '. Total international and regional Grand total 76 CAPITAL MOVEMENTS Table CM-l-4. - Total Liabilities by Type and Country, as of Mar. 31, 1989, Preliminary [Positign in millions of dollars] Total payable 1i To foreign official Total Payable Payable" in in dollars foreign I i olla 77 CAPITAL MOVEMENTS Section II. - Claims on Foreigners Reported by Banks Table CM-ll-1. - In the United States Total Claims by Type [Position at end of period in miHions of dollars] Sept. Type of 507, Payable in dolla Foreign publ ic borrowers.. Unaff il iated foreign banks Deposits Other Own foreign offices AI 1 other foreigners Claims of banks' domestic customers Deposits Negotiable and readi ly transferable instrument Col lections and other. . Payable in foreign currencies. Banks' own claims on foreign Claims of banks' domestic Claims reported by IBF's Payable in dollars Payable in foreign currencies Customer liability on acceptanc maturity of 1 year or less On foreign public borrower other unaffiliated On al foreigners ; 1 ily of more than 1 ye oreign public borrowe 78 CAPITAL MOVEMENTS CLAIMS ON FOREIGNERS CALENDAR YEARS Reported by International Banking 1983-88 Facilities and by Banks in the United States 1983 1984 1985 1986 END OF PERIOD 1987 l9oO (Preliminary) CAPITAL Table Calenda 1986r CM-ll-2. - MOVEMENTS Total Claims by Country 79 80 CAPITAL MOVEMENTS Table CM-ll-3. - Total Claims on Foreigners by Type and Country Reported by Banks [Position at Austria Belgium-Luicembourg. Finland... France Geriiian Oem Ireland. .. Italy Netfierland I.'!67 U.S.S.R Yugoslavia.. Other Europe enil in the United States, as of Dec. of perioj In .Tilllioni of tlollarii 31. 1986 81 CAPITAL MOVEMENTS Section 111. - Supplementary Table Liabilities CM — III — 1. — and Claims Data Reported by Banks Dollar Claims in the United States on Nonbank Foreigners [Position at end of period in rninions of dollars] U.S. agencies and branches foreign banks 1983 1984 1985 1986 1987 " 1988-Feb. r r Mar r Apr May'r June r July r r Aug Sept. r Oct Nov n.r 1989-Jan Feb ;; p p 199,950 191,928 176,160 166,711 157,978 76,113 75,952 63,880 68,454 66,152 44,970 43,062 46,812 41.812 41,389 78,86/ 72,914 65,468 56,445 50,437 153,969 153,913 152,950 152,492 153,856 150.431 149.529 152,241 149,660 150.479 146,179 147,179 147,162 63,693 63,351 63,404 62,866 64,880 63,954 63.820 67,528 66,816 68.851 65,356 67,003 66,899 40,598 39,770 40,066 39,884 40,416 39,661 39.712 39,462 39,196 38,818 38,771 38,670 38,705 49,678 50.792 49,480 49,742 48,560 46,816 45,997 45,251 43.648 42.810 42,052 41,506 41,558 82 CAPITAL MOVEMENTS Table CM — III— 2. — in Dollar Liabilities to, and Dollar Claims on, Foreigners Countries and Areas Not Regularly Reported Separately [Positioo at end of period in millions of dollars] Total liabiliti Total banks Other Europe: Cyprus Iceland Ireland Monaco Other Latin America and Caribhei Barbados Belize Bolivia Costa Rica Dominican Republic El Salvador French West Indies and French Guiana Guyana Haiti Honduras Nicaragua Paraguay Suriname Other Asia: Afghanistan Bangladesh Brunei Burma Cambodia (formerly Kampuchea). Jordan Macao Nepal Sri Lanka Vietnam Yemen (Aden) Yemen (Sana) Other Africa: Angola Burundi Cameroon Ethiopia, including Eritrea... Guinea Ivory Coast Kenya Madagascar Mauritania Mauritius Mozambique Niger Rwanda Sudan Tanzania Tunisia Uganda Zambia other: Nex Hebrides New Zealand Papua New Guinea U.S. Trust Territory of the Pacific Islands All 571 760 628 174 497 132 434 436 684 857 627 436 661 699 691 423 678 844 738 211 235 609 561 961 924 773 208 458 532 488 497 125 124 167 159 139 500 464 155 134 442 413 162 83 CAPITAL NflOVEMENTS Section — IV. Liabilities to, and Claims on, Foreigners Reported by Nonbanking Business Enterprises Table CM-IV-1. - Total Liabilities and Claims by Type [Position at end of period Type of Total 1 1 iabil i or cli ty iabil ities Payable in dollars. . . ayables receipts and other Payable in Financia Commerci Trade payabl es Advance receipts and other Total claims Payabl e i n dol 1 a Oepo Othe Advance payments and other Payable Finan Other ommerci al Trade receiv Advance paym : 26.389 12,553 in millions of dollars] in the United States . 84 CAPITAL MOVEMENTS Table CM-IV-2. - Total Liabilities by Country :Posltlon at end of period In millions of dollars] Austria Belgium-Luxembourg Bulgaria Czechoslovakia Denmark Finland France German Democratic Repub German/ Greece Hungary 283 1,280 1.433 1,309 1 3 18 929 1,127 983 Italy Netherlands Norway Poland Portugal Romania Spain Sweden Switzerland Turkey United Kingdom U.S.S.R Jugoslavia Other Europe Total 989 25 5,281 Europe Canada Latin America and Carlbbe Argentina Bahamas Bermuda Brazil British West Indies Chile Colombia Cuba Ecuador Guatemala Jamaica Mexico Netherlands Antilles. Panama Peru Trinidad and Tobago Uruguay Venezuela Other Latin America and Caribbean . Total Latin America and Caribbean Asl a: China: Mainland Taiwan Hong Kong India Indonesia Israel Japan Lebanon Malaysia Pakistan Philippines Singapore Syria Thailand 011-exportlng countries Other Asia Total Asia Africa: Egypt Ghana Liberia Morocco South Africa Zaire 011-exportlng countries Other Africa Total Africa Other countries: Australia All other Total other countries. Total foreign countrle International and reglona International European regional Latin American regional Asian regional African regional Middle Eastern regional Total international and regional Grand total 85 CAPITAL MOVEMENTS Table CM-IV-3. - Total Liabilities by Type and Country, as of Dec. [PosUion at end of period in 31, 1988, Preliminary millions of dollars] liabiliti Austr Belgi Bu1ga nland 806 riran Democratic Repub 45 2,436 326 43 746 Hungary. Italy... Poland. Portugal. . 1.232 74 Turkey United Kingdom U.S.S.R al 6,415 5 17.831 Eur atin America and Ca Argentina Chile.. Colombi Cuba... Nethe Trinidad and Tobago. and Ca Middle 6.300 * 273 43 480 53 480 - 2 266 1,690 86 CAPITAL MOVEMENTS Table CM-IV-4. - Total Claims by Country [Position at end of period In -ninions of dollars] Austria Belgium-Luxembourg Bulgaria Czechoslovakia Denmark Finland France German Democratic Repul Germany Greece Hungary Italy Netherlands Norway Poland Portugal Romania Spain Sweden Switzerland Turkey United Kingdom U.S.S.R Yugoslavia Other Europe Total Europe 10,158 Canada Latin America and Caritjb( Argentina Bahamas Bermuda Brazil British Uest Indies. .. Chile Colombia Cuba Ecuador Guatemala Jamaica Mexico Netherlands Antilles. Panama . Trini'dad'andTobago. Uruguay Venezuela Other Latin America and Caribbean . . Total Latin America and Caribbean Asia: China: Mainland Taiwan Hong Kong India Indonesia Israel Japan Korea Lebanon Malaysia Pakistan Phil Ippines Singapore Syria Thailand on-exporting countrle Other Asia Total Asia Africa: Egypt Ghana Liberia Morocco South Africa Zaire Oil-exporting countrle other Africa Total Africa Other countries: Australia All other Total other countries Total foreign countrl International and region International European regional Latin American reglona Asian regional African regional Middle Eastern reglona Total international and regional Grand total CAPITAL 87 MOVEMENTS Table CM-IV-5. - Total Claims by Type and Country, as of Dec. [Posttton at end of pertoj in millions of dollars] Financial cla Austria Bel'jiun-Luxeiiibourg Bulgaria Czechoslovakia Oenmarl< Finland France German Democratic l^epubll Germany Greece Hungary Italy 553 615 137 Netherlands Norway Poland Portugal Romania Spain Sweden Switzerland Turlcey United Kingdom U.S.S.R Yugoslavia Other Europe Total Europe 15,290 anada atin America and Caribbean Argentina Bahamas Bermuda Brazil British West Indies Chile Colombia Cuba Ecuador Guatemala Jamaica Netherlands Antilles Panama Peru Trinidad and Tobago Uruguay Venezuela Other Latin America and Total C Latin America and China: Mainland Taiwan Hong Kong India Indonesia Israel Japan Lebanon Hal aysia Paliistan Phil ippines Singapore Syria Thailand Other Asia Total Asia frica: Egypt Ghana Liberia Morocco South Africa Zaire Other Africa Total Africa ther countries: Austral ia All other Total other countries. Total foreign countries. . nternational and regional International European regional Latin American regional.. Asian regional African regional Middle Eastern regional .. : 31, 1988 88 CAPITAL ection V. — Transactions Table In CM-V-1. - TitlHons of dollars; MOVEMENTS Long-Term Securities by Foreigners Reported by Banks and Brokers Foreign Purchases and Sales of Long-Term Domestic negative figures tndUate net sales by foreigners or a net outflow of capital U.S. Gov't corporations and federally sponsored agenc es Marketable Treasury bonds Net Foreign purcha in the United States Securities by Type from the United States] Corporate 1 Foreign countries InternaOther tional forand reinstitutions eigners gional Official Total (1) 1985 (2) (3) (4) Gross foreign Gross purforeign chases sales (6) Net foreign purchases (7) Gross foreign Gross purforeign chases sales (8) (9) Gross foreign foreign Gross purpurforeign chases chases sales Net (10) (11) (12) Net foreign purchases (13) Gross foreign Gross purforeign chases sales (14) (15) 89 CAPITAL MOVEMENTS Table CM-V-3. - Net Foreign Transactions In Long-Term Domestic Securities by Type and Country ency bonds Austria Belgium-Luxembourg Bulgaria Czechoslovakia Dennark Finland France German Democratic Republic Germany Greece Hungary Italy Netherlands Norway Poland Portugal Romania Spain Sweden Switzerland Turkey United Kingdom U.S.S.R 145 923 1.069 390 1.911 • -5,348 144 -10 671 -356 1,232 • .1 « 5,309 311 -341 VugosUvia 3 Europe . 14,260 Canada Latin America and Ca/ Argentina Bahamas Bermuda Brazil British Hest Chile Colombia Indie' Cuba Ecuador Guatemala Jamaica Mexico Netherlands Antilles Panama 3 2 190 -308 -51 Peru Trinidad and Tobago 2 • Uruguay Venezuela Other Latin America and Caribbean 13 -109 30 Total Latin America and Caribbean 703 Asia: China: Mainland 84 Taiwan Hong Kong India Indonesia Israel Japan Korea Lebanon Malaysia Pakistan Phil ippines 2,665 1,277 -18 -1 402 21,752 1,035 1 -305 2 36 Singapore Syria Thailand Oil-exporting count Other Asia Total ri es J_/ Asia 440 -137 -76 1.943 168 27,585 Africa: Egypt Ghana 1 Morocco South Africa Zaire 01 l-export1ng count Other Africa Total Africa Other countries: Australia All other Total other countr Total foreign coun International and reg International European regional.. Latin American regi Asian regional African regional... Middle Eastern regional... Total international and regional Grand total • 1/ 2,434 2 9.667 Other Europe Total 2,421 323 -1 ,074 Less than $500,000. Includes Bahrain. Iran, -68 686 48,770 Iraq. Kuw 2,631 1,052 11,898 90 CAPITAL MOVEMENTS NET PURCHASES OF LONG-TERM DOMESTIC SECURITIES BY SELECTED COUNTRIES Calendar Years 1985 through 1989, ^D - First Quarter CAPITAL Table CM-V-4. 91 MOVEMENTS - Foreign Purchases and Sales of Long-Term Securities, by Type and Country, During First Quarter 1989, Preliminary [In millions of Jollars] "y '- _Li_ (10) 1,000 4,750 Belgium-Lux.. Bulgaria 1 C2echaslo<al(i Denmark Finland German'oem Be Germany Greece Hungary Ireland Italy Netherlands. Norway Poland Portugal . Spain..'.'.'.'.'.'. Sweden S«itierland.. Turkey United Kingdo U.S.S.D Yugoslavia... Other Europe. Total Europe anada at Amer 8 Cari Argentina.... Bahamas Bermuda Brazil Brit aest Ind. Chile Colonbia Cuba Ecuador Guatemala Jamaica Mexico Neth Antil les.. Panama Peru Trin S Tobago. Uruguay Venezuela Other Lat Amer and Caribbean . . Total Lat Amer and Caribbean China: Mainland Taiwan Hong Kong India Indonesia Israel 92 68 24 27 268 636 5,014 1,187 24 2 58 91 1,061 18,575 957 1,474 7,190 105 121 1,512 Japan Korea Lebanon Malaysia Pakistan Philippines Singapore Syria... Thailan. Other Ai Total 2,110 ; frica: Egypt.. Ghana... 214,182 1,595 19 1,619 5 82 10.938 (11) (12) (13) (14) 92 CAPITAL MOVEMENTS Table CM-V-5. - Foreign Purchases and Sales of Long-Term Sacuritie by Type and Country, During Calendar Year 1988 (3) (4) 151 (11) (6) 112) 113) (H) .124 Belgium-Lux Bulgaria 25.725 260 1.132 3.303 8.280 213 1.130 6,154 11.084 4 25 • 550 1.542 5.384 14.370 2.409 7.917 1.894 596 1.290 C;echoslo»aiiia. 14.922 14,088 37,034 Denoiarli Finland France German Dcm Bcp. Germany Greece Hungary 427 675 5,153 Italy 34,143 5,302 . . 4 583,612 404,450 7 " 31 " ' 556 6,065 19,669 2,150 10,213 • 101 78 51 2,456 23,711 4,794 113 19 I Asia: China: Mainland Taiwan Hong Kong India Indonesia Israel Japan Korea Lebanon Malaysia Paliistan Philippines Singapore Syria Thailand Other Asia 3,693 5,531 26,472 368 585 4,895 761.944 4,330 104 7.088 17 862 32,737 162 2,143 , Africa: Egypt. Ghana Liberia Morocco South Africa. .. Zaire Other Africa... . Total Africa.. Other countries: Australia All other 1 2.231 ,571 19,956 3.013 2.044 Total and Caribbean Total 2,242 19,600 4,245 2 282 Cuba Ecuador Guatemala Jamaica Mexico Neth Antilles.. Panama Peru Trin S Tobago. Uruguay C. 2.150 10,627 20,490 11.854 341 Colombia and 1.806 15.841 30 Caribbean: Argentina Bahamas Bermuda Li 10.730 5.602 I Eur Other 5.873 12,061 22,914 38,892 Canada Brazil Brit West Ind. Chile 1,205 2,532 23 united Kingdom. U.S.S.R Yugoslavia Other Euro S 280 17,140 1 Turiiey Total 11 .516 11.041 11.126 15.229 6 64,208 Netherlands Norway Poland Portugal Romania Spain Sweden Switzerland Lat Amcr 12,101 1 4,820 11 89 83 353. 5,404 20,378 3,307 20.812 8, 23.944 36,200 84,86 93 FOREIGN CURRENCY POSITIONS INTRODUCTION Background Data have been collected since 1974 on the foreign currency positions of banks and nonbanking firms in the United States, and on those of foreign branches, majority-owned foreign partnerships, and majority-owned foreign subsidiaries of U.S. banks and nonbanking firms. Reports cover five major foreign exchange market currencies and U.S. dollars held abroad. Reporting has been required pursuant of Public Law 93-110, an amendment to the Par Value to title Modification Act of September 21, 1973, and implementing Treasury regulations. Statistics on the positions have been published since March 1977 beginning with data for December 1975. II "Majority-owned foreign partnerships" are those organized under the laws of a foreign country in which one or more nonbanking concerns or nonprofit institutions in the United States, directly or indirectly, own more than 50 percent profit interest. "Majority-owned foreign subsidiaries" are foreign corporations in which one or more nonbanking business concerns or nonprofit institutions located in the United States, directly or indirectly, own stock with more than 50 percent of the total combined voting power of all classes of stock entitled to vote, or more than 50 percent of the total value of all classes of stock. Reporting Threshold The report forms and instructions used in the collection of bank data were revised effective with reports as of March 16, 1983, for the weekly reports. The most recent revision of the nonbank foreign currency forms (see below) became effective as of the last business day of March 1983. Common Definitions and Concepts The term "United States" means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Midway Island, the Virgin Islands, and Wake Island. The term "foreign" means locations other than the "United States." The term "worldwide" is used to describe the sum of "United States" and "foreign" data. Data for the United States include amounts reported by sole and corporations in the United States proprietorships, partnerships, including the U.S. branches and subsidiaries of foreign nonbanking concerns, in the case of "nonbanking firms' positions," and the agencies, branches, and subsidiaries located in the United States of foreign banks and banking Institutions, in the case of the weekly "bank positions." Data for "foreign branches" and "abroad" include amounts reported by the branches, majority-owned partnerships, and majority- owned subsidiaries of U.S. banking general, these data do not and nonbanking concerns, reflect the positions of foreign foreign parents' subsidiaries located company accounts. The data The exemption level applicable to banks and banking instituwas $10 million equivalent through January 1982, when was $100 million. The exemption level applicable to nonbanking business concerns and nonprofit institutions was $1 million equivalent on all nonbank forms from March 1975 through November 1976. It was raised to $2 million equivalent on the monthly reports of positions held in the United States from November 1976 through September 1978. The exemption level was raised to $3 million on foreign subsidiary positions on June 30, 1977, and for positions held in the United States on September 30, 1978. The exemption level for nonbanking firms was raised to $100 million on positions in the United States in January 1982 and on foreign branch and subsidiaries positions in March 1982. tions it raised to Firms must report their entire foreign currency position in a if a specified U.S. dollar equivalent value reached in any category of assets, liabilities, exchange contracts specified foreign currency is bought and sold, or the net position in the currency. In general, exemption levels are applied to the entire firm. In reports on their foreign branches, majority-owned foreign partnerships, and majorityowned foreign subsidiaries, U.S. banks and nonbanks are required to report the U.S. dollar-denominated assets, liabilities, exchange contracts bought and sold, and net positions of those branches, partnerships, and subsidiaries with reportable positions in the speci- fied foreign currencies. in parents or abroad except through inter- Description of Statistics include the foreign subsidiaries of a few foreign-owned U.S. -based corporations. Data collected on the Treasury foreign currency forms are pubin the Treasury Bulletin in seven sections. The first section presents a summary of worldwide net positions in all of the currencies reported Sections through VI each present data on a lished Assets, liabilities, and foreign exchange contract data are reported on the basis of time remaining to maturity as of the date of the report, regardless of the original "Spot" means due for receipt matuhty or delivery within 2 business days from the date of the report. "Short-term" from the date of the report. of the instrument involved. means maturing in 1 year or less II specified foreign currency. Section VII presents the U.S. dollar positions of the foreign branches and subsidiaries of U.S. firms which are required to report in one or more of the specified foreign currencies. 94 FOREIGN CURRENCY POSITIONS Section l.--Summary Positions Table FCP-i-1.--Nonbanking Firms' Positions [In millions ol foreign currency units, except yen, Japanese which is in billions] British pounds 95 FOREIGN CURRENCY POSITIONS Section ll.-Canadian Dollar Positions Table FCP-ll-1.--Nonbanking Firms' Positions [In Report dale millions ol dollars] . 96 FOREIGN CURRENCY POSITIONS Section lll.-German Mark Positions Table FCP-lll-1.--Nonbanking Firms' Positions [In Assets (1) 7/29/88 8/31/88 9/30/88 . . . 10/31/88. 1 1/30/88 12/30/88 . r51,778 r1.894 ' Liabilities 3 (2) millions of marks] Exchange bought (3) ^ Exchange (1) sold ^ 97 FOREIGN CURRENCY POSITIONS Section IV.--Japanese Yen Positions Table FCP-IV-l.-Nonbanking Firms' Positions 98 FOREIGN CURRENCY POSITIONS Section V.--Swlss Franc Positions Table FCP-V-1.--Nonbanking Firms' Positions [In Bepon dale millions of Irancs] 99 FOREIGN CURRENCY POSITIONS Section Vl.--Sterling Positions Table FCP-VI-l.-Nonbanking Firms' Positions Repon date ' 100 FOREIGN CURRENCY POSITIONS Section VII.-U.S. Dollar Positions Abroad Table FCP-VII-1.--Nonbanking Firms' Foreign Subsidiaries' Positions [In Assets 2 (1) 9/30/88 millions ol dollars] Liabilities 3 Exchange bought (2) (3) * Exchange sokJ 101 FOREIGN CURRENCY POSITIONS FCP-VD Footnotes to Tables FCP-I through SECTION ^ I Excludes receivables and installment paper Worldwide net positions on the business concerns in last business day of the calendar quarter ot nonbanWng the United States and their foreign branches and majority-owned partnerships and subsidiaries. Excludes receivables and installment paper which have sold or discounted before maturity. U.S. parent conpanies' investment in been assets and equipment], (plant leases for plant and equipment), and Columns 1 and 3 are expressed banks and banking institutions In the United States, dollar. and Iheir foreign and Utilities. and forward exchange less columns 2 and in rates. majority -owned institutions subsidiaries. In in the United States section VII. foreign subsidiaries only. Excludes capital assets. THROUGH VII Excludes capital liabilities. Includes both spot and fonward exchange contracts. Positions ot nonbanking business concerns in the United States branches and majority-owned partnerships and subsidiaries. foreign branches In and majority-owned partnerships and subsidiaries and their foreign Columns 3 and 9 section VII positions of only. 12 See footnote 6. all others in automated representative rates changed as ot the Banks and banking 11 foreign 4. U.S. dollars per unit ol foreign currency, The source branches and majority- owned foreign subsidiaries. Excludes capital assets Foreign branches and majority-owned subsidiaries only. SECTIONS majority-owned Representative rates on the report dale. Canadian dollar and United Kingdom pound rates Foreign branches and majority- owned partnerships and subsidiaries only. of in capitalized and equipment. Weekly worldwide net positions or discounted before maturity, fixed investment and equipment teases are excluded. Capitalized plant their Includes both spot majority- owned foreign subsidiaries, fixed assets (plant soW and parents' subsidiaries. less columns 6 and 12. and foreign units per U.S. of June their foreign branches and 30. 1988. branches and majority-owned 102 EXCHANGE STABILIZATION FUND INTRODUCTION ments as Background liabilities, event of liquidation Fund (ESF) was established under the Gold Reserve Act of January 30, 1934(31 U.S.C. 822a). This act authorized the establishment in the Department of the Treasury of a stabilization fund to be operated under the exclusive control of the The Exchange Stabilization Secretary of the Treasury, with the approval of the President, for the purpose of stabilizing the exchange value of the dollar. Subsequent of the IMF SDR they must be redeemed by the ESF only in the or U.S. withdrawal from, the SDR Department of, or cancellation of SDRs to the Federal Reserve System against SDRs when SDRs are "monetized" and the proceeds of the monetization are deposited in an ESF account at the Federal Reserve Bank of New York. certificates -\ssoed amendment of the Gold Reserve Act modified the original purpose somewhat to reflect termination of the fixed exchange rate system. Description of Tables The resources of the fund consist of invested in U.S. Government securities, dollar balances, partly special drawing rights (SDRs), and balances of foreign currencies. The been sources of income or losses for the losses on holdings of and transactions in and the interest earned on assets. principal profits or ESF have SDRs and foreign exchange, Table ESF-1 presents the assets, liabilities, and capital of the ESF. Data are presented in U.S. dollars or US dollar equivalents based on current exchange rates computed according to the accrual method of accounting. The capital account represents the original capital appropriated to the ESF by Congress of $2 billion, less a subsequent transfer of $1.8 billion to pay for the initial U.S. quota subscription to the IMF. Subsequent gains and losses since inception are reflected in the cumulative net income (loss) account. Definitions Special drawing r/gftfs. -International assets created by the Monetary Fund (IMF). They serve International tional liquidity and provide increase interna- additional international reserves, be purchased and sold among SDR to eligible holders and may through the IMF. allocations.-Jhe counterpart of SDRs issued by the IMF in the IMF. Although shown in ESF state- based on members' quota Table ESF-2 presents the results of operations by quarter. Data are presented in U.S. dollars or U.S. dollar equivalents computed according to the accrual method of accounting. The "Profit (loss) on foreign exchange" includes realized profits (losses) on sales of foreign currencies as well as revaluation gains (losses) on currencies held. "Adjustment for change in valuation of SDR holdings and allocations" reflects the net gain (loss) on revaluation of SDR holdings and allocations for the quarter. 103 EXCHANGE STABILIZATION FUND Table ESF-1 .--Balances as of Sept. 30, 1988, and Dec. 31, 1988 [In Assets, liabilities, and thousands of dollars] Sept. 30. 1988. through Doc. 31.1988 capital Assets U.S. dollars: Held at Federal Reserve Bank o! Held with Treasury: U.S. Government securities New York Other Special drawing rights i Foreign exchange and securities 2: German marks Japanese yen Pounds sterling Argentine australs Ecuadorean sucres Yugoslavian dinars Accounts receivable 546.703 1.067.000 9.636.562 134.437 (502.876) 1,785 1.463 6.549.637 1.498.678 19.621 24,71 161,933 20,230,464 Total assets Liabilities and capital liabilities: Accounts payable Advance from U.S. Treasury (U.S. drawing on llulF) 3 Total current Other 537,184 1,067,000 9.073.764 6.415.200 2.001 ,554 17,836 23,248 Swiss francs Mexican pesos Current 932,745 liabilities liabilities: Special drawing rights certificates Special drawing rights altocations Total other liabilities Capital: Capital account Net income (loss) (see table ESF-2) Total capital Total liabilities and capital 72,322 1,067,000 1,139.322 80,317 1 .067.000 SPECIAL REPORTS us, CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION 108 U.S. CURRENCY AND COIN OUTSTANDING AND IN CIRCULATION INTRODUCTION Definition of Terms Purpose and Scope The U.S. Currency and Coin Outstanding and in Circulation prepared to inform the public of the face value of currency and coin which are used as a medium of exchange and the total thereof, as of the end of a given accounting month. Statement is The statement defines the total amount of currency and coin outstanding and the portion of which is deemed to be in circulation. Although it still includes some old and cun-ent rare issues of coin and currency which do not circulate or may do so to a limited extent, Treasury policy is to continue their inclusion in the statement since such issues were originally intended for general circulation. The statement also provides a brief description of the various issues of U.S. paper money and further presents a comparative circulated in relation to population. amount of The classification "Amounts outstanding and in circulation" all issues by the Bureau of the Mint which are purposely intended as a medium of exchange. Therefore, coins sold by the Bureau of the Mint at premium prices are excluded. However, uncirculated coin sets, sold by the Mint at face value plus a handling charge, are included. includes The term "Federal Reserve notes" refers to issues by the U.S. Government to the public through the Federal Reserve banks and member banks These notes represent U.S. Government obligations. Currently, the item "Federal Reserve notes -amounts outstanding" consists of new series issues. The Federal Reserve their note is the only class of currency currently issued. money "U.S. notes" are also known as legal tender notes and were in five different issues; namely, (a) First lssue--1862 ($5 to $1,000 notes), (b) Second lssue-1862 ($1 to $2 notes), (c) Third issued History Statements of cun-ency and coin outstanding and in circulation have been published by the Department of the Treasury since 1888. These statements were originally prepared monthly by the Division of Loans and Currency, which was then under the Office of the Secretary of the Treasury but later became part of the Public Debt Service (currently known as the Bureau of the Public Debt) in 1929. The statement was published with the title "Circulation Statement of United States Money" from 1923 through Decemt)er 31, 1965. Con- December 31, 1919, to September 30, 1951, the Office of the U.S. Treasurer published a statement entitled "Monthly lssue-1863 ($5 to $1,000 notes), (d) Fourth lssue--1863 $10,000 notes), and (e) Fifth lssue-1901 ($10 notes) ($1 to The column for 'Cun-ency no longer issued" consists of gold and new series), silver certificates (old and new series). Federal Reserve notes (old and new series), national bank notes (old and new series), and Treasury notes (1890 series). certificates (old "Dollar coins" include standard silver coins and nonsilver coins. currently, from Statement-Paper Currency of Each Denomination Outstanding." Two months after the Office of the U.S. Treasurer assumed publication of the "Circulation Statement of United States Money," a revision was made to the statement to include denomination Currency was in circulation. 1 Reporting Sources of incorporated into the quarterly Treasury Bulletin as a special report. 50 cents, 25 cents, and 10 cents and minor coins (5 cents and cent). detail of the Publication of the "Monthly Statement-Paper Each Denomination Outstanding" was discontinued, and the revised version which combines information from both statements became known as the United States Currency and Coin Outstanding and in Circulation Statement The statement in 1983 ceased to be published as a separate, monthly release and instead currency "Fractional coins" include subsidiary coins in denominations of Data used in the preparation of the U.S. Currency and Coin Outstanding and in Circulation Statement is derived from monthly Mint offices, the reports required from Treasury offices, various Federal Reserve banks, and the Federal Reserve Board Such redenomination and amount, class, information about the ports convey of new issues of currency and/or coin, of destroyed and replaced cunency, and of currency and coins withdrawn from circulation. Estimates of population from the Bureau of the Census are used in the calculation of money circulated per capita. US 109 U.S. Currency and Coin Outstanding and [Source: Financial Managemem in Circulation Service] AMOUNTS OUTSTANDING AND IN CIRCULATION Currency Total currency and Currency no longer issued Amounts outstanding Less amounts held by: TheTreasury The Federal Reserve banks Amounts in circulation $287,267,007,128 $268,821,364,230 $268,231,138,325 $322,539,016 $267,686,889 $18,445,642,898 $2,024,703,898 $16,420,939,000 480.939.606 43.856.442.669 36.696.688 43,373,823,940 4.706.923 43,373,790,541 31.772.639 213 217.126 33,186 444,242,918 482,618,729 332,592.110 110.2e2!359 372!356]370 242,929,624,853 225.410.843,602 224.852.640.861 290.766.164 267.436,577 17,518.781,251 1.581.849.429 15.936.931.822 CURRENCY IN 111650808 CIRCULATION BY DENOMINATION Mar. 31.1989 Denomination Reserve Currency no longer notes issued Federal $4,424,532,783 781.713.842 6,663,605.115 11.574.821.090 61,533,694,620 29,641,634,450 111,460,663.600 150,536.500 174,401.000 1,790.000 3,450.000 $1 $2 $5 $10 $20 $50 $100 $500 $1,000 $5,000 $10,000 ^ Issued on and after July $143,481 132,847.058 111.951.005 5.950 3.380 $151,668,999 12.966 36.892.710 24.410.110 20.161,680 11.577.200 22.169,900 189.500 208.000 45.000 100.000 487 25 115 notes 5 225,410,843.602 Total currency ' $4,272,720,303 648.853.818 5.514.761.400 11.550.405,030 61.513.529.560 29.630,057.250 111.392.678.500 150.347.000 174.193.000 1.745.000 3.350,000 487 Fractional parts Partial 1 1. 1929. Excludes coin sold to collectors at premium prices. Includes $481 ,781 ,898 in standard si^er dollars. Mar. 31.1989 Feb. 28. 1989 Jan. 31. 1989 Mar. 31. 1988 Sept.30. 1985 Sept. 30. 1980 June June June June June June 30. 30. 30. 30. 30. 30. 1975 1970 1965 1960 1955 1950 $242,929.6 240.779.5 239.623.8 227.058.6 187,337.4 129,916.9 81.196.4 54.351.0 39.719.8 32.064.6 30.229.3 27.156.3 $979.69 971.66 967.65 924.68 782.45 581.48 380.08 265.39 204.14 177.47 182.90 179.03 224.852.640.861 ^ Based on Bureau of the Census estimates Represents value of certain parlial of population. denominations not presented for redemption. 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