Postal Financing Reform Act of 1998

Postal Financing Reform Act of 1998 - Amends Federal law to authorize the Postal Service to provide: (1) that amounts that would otherwise be deposited in the Postal Service Fund shall be directly deposited in a Federal Reserve bank or a selected depository for public funds; and (2) for transfers of such amounts between or among such banks, depositories, and the Fund. (Currently, the Postal Service must have the Secretary of the Treasury's approval to deposit Fund monies in such banks or depositories.)

Removes the requirement for the Secretary's approval with respect to investment options for excess Fund monies. Authorizes investments of excess monies in obligations or securities if such investments are closely related to Postal Service operations.

Revises provisions regarding the relationship between the Postal Service and the Secretary with respect to the sale of certain issues of obligations. Provides that such sales and issues shall not be subject to the Secretary's approval.

Authorizes the Secretary (currently, the Postal Service may require the Secretary) to purchase Postal Service obligations upon request of the Postal Service. Prohibits the obligations purchased from causing the total amount of Postal Service obligations from exceeding the currently authorized annual limitation.