On Wednesday, the Treasury routinely announced its record $14.5 billion quarterly refunding, which will be auctioned this week. The Treasury also declared that it will need to raise $59.5 billion of new money during this quarter and between $33 billion and $38 billion during the second quarter of this year. Both of these amounts were higher than anticipated, especially the second-quarter figure. When you consider that the second half of the calendar year is generally the period in which most of the funds are borrowed, and that the Treasury will borrow about $95 billion during the first half alone, you begin to realize how large a job Frank Kennedy, the head of the Treasury's debt management team, will have in 1983.

The advent of the money-market account and the Super NOW account at thrifts and commercial banks has initiated a vast change in the flow of funds in the financial system. They have also changed interest rate spreads among money-market instruments, and investment decisions that must be made by both the losers of these funds and the institutions that have gained the funds. The financial institutions are, by law, free to pay any rate of interest to attract deposits. Most are currently paying a rate from 150 to 250 basis points above the rates being paid on money-market funds. (A basis point is one-one hundredth of a percentage point.) Initially, some institutions paid as much as 550 to 1,200 basis points above the fund rates. Their hope was to attract deposits and hang onto them after lowering the rates to a level just slightly above what the funds pay.

So far, about $32 billion has left the funds, but a much larger amount has shifted internally from the simple passbook savings accounts that had been paying 5 1/4 percent to the new insured accounts. The problem for the financial institutions now is to pair off these new high-rate deposit liabilities with a financial instrument to either earn more than the institution is paying for the deposit or, at least, to break even.

The money-market fund managers are now using their cash flow more to redeem shares of their funds and are also maintaining larger overnight position; of cash. It remains to be seen what the final outcome will be, but so far the customers have benefited most.

The Treasury's quarterly refunding will offer three issues on consecutive days. On Tuesday, a three-year note will be offered in minimum denominations of $5,000. Wednesday will see a 10-year note offered in $1,000 minimums. Finally, on Thursday, the Treasury will reopen the current 10 3/8 percent, 29 3/4-year bond that will also be available in $1,000 minimums. Investors may subscribe to these three issues by going to the U.S. Treasury in Washington or to any of the Federal Reserve banks or their branches prior to 1:30 p.m. on the day of each sale. Banks or brokerage houses will also submit a bid for a fee. Small investors should enter noncompetitive bids for the best result. The returns should be 9.75 percent, 10.75 percent and 10.90 percent respectively.

On Tuesday, $1.4 billion of tax-exempt, government-backed HUD project notes will be offered, maturing monthly from June 1983 to March 1984. They should return between 4.60 percent and 4.90 percent.

The Treasury's quarterly refunding will offer three issues on consecutive days. On Tuesday, a three-year note will be offered in minimum denominations of $5,000. Wednesday will see a 10-year note offered in $1,000 minimums. Finally, on Thursday, the Treasury will reopen the current 10 3/8 percent, 29 3/4-year bond that will also be available in $1,000 minimums. Investors may subscribe to these three issues by going to the U.S. Treasury in Washington or to any of the Federal Reserve banks or their branches prior to 1:30 p.m. on the day of each sale. Banks or brokerage houses will also submit a bid for a fee. Small investors should enter noncompetitive bids for the best result. The returns should be 9.75 percent, 10.75 percent and 10.90 percent respectively.

On Tuesday, $1.4 billion of tax-exempt, government-backed HUD project notes will be offered, maturing monthly from June 1983 to March 1984. They should return between 4.60 percent and 4.90 percent.