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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F T H E U N IT E D S T A T E S DA LLAS. TEXAS 75222 Circular No. 70-2U January 28, 1970 PRELIMINARY AJMOUNCEMENT TREASURY FINANCING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to current financing: TREASURY ANNOUNCES $6.7 BILLION REFUNDING OF FEBRUARY 15 AND MARCH 15 MATURITIES The Treasury today announced that it is offering holders of the Treasury Bonds of 1970, maturing February 15? 1970? and the 2-1/2$ Treasury Bonds of 1965-70, maturing March 15, 1970, the right to exchange their holdings for an l8-month note, 3-l/2-year note, or a 7-year note, at par. h°fo The notes being offered are: 8-1/k ° jo Treasury Notes of Series F-1971, dated February 15, 1970, due August 15, 1971, 8-1/8°j0 Treasury Notes of Series B-1973, dated February 15, 1970, due August 15, 1973, and % 8 Treasury Notes of Series A-1977, dated February 15, 1970, due February 15, 1977. In the case of exchanges of the 2-1/2$ bonds, interest will be adjusted as of March 15, 1970. The payments due to and from sub scribers and the net amounts payable to subscribers tendering 2-l/2$> bonds are as follows (per $1,000 face value): This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) IF EXCHANGE IS FOR NOTES PAYABLE TO SUBSCRIBER TO ADJUST FOR MARKET VALUE OF BONDS ACCRUED INTEREST PAYABLE BY SUBSCRIBER TO SUBSCRIBER ON NEW NOTES ON 2-1/2 BONDS (2-15-70 to (9-15-69 to 3-15-70) 3-15-70) $ NET AMOUNT TO BE PAID TO SUBSCRIBER 8 -l/i# Due 8-15-71 $1.14 $12.50 $ 6.38122 $7.25878 Due 8-15-73 1.04 12.50 6.28453 7.25547 Due 2-15-77 0.95 12.50 6.18785 7.26215 8-1/8$ The public holds about $5.6 billion of the bonds eligible for exchange, and about $1.1 billion is held by Federal Reserve and Government Accounts. Cash subscriptions for the new notes will not be received. The books will be open for three days only, on February 2 through February 4, for the receipt of subscriptions. Subscriptions must be in an amount of $1,000 or a multiple thereof and may be paid for only with eligible maturing securities. Subscriptions addressed to a Federal Reserve Bank or Branch, or to the Office of the Treasurer of the United States and placed in the mail before midnight February 4, will be con sidered as timely. The payment and delivery date for the notes will be February 16, 1970. The notes will be made available in registered as well as bearer form. All subscribers requesting registered notes will be required to furnish appropriate identifying numbers as required on tax returns and other documents submitted to the Internal Revenue Service. Coupons dated February 15, 1970, on the bonds maturing on that date should be detached and cashed when due. The February 15, 1970, interest due on registered bonds will be paid by issue of interest checks in regular course to holders of record on January 15, 1970, the date the transfer books closed. Coupons dated March 15, 1970, on the bonds due on that date must be attached. Interest on August 15, 1970, notes due August August 15, 1970, maturity. the and 15, and notes due August 15, 1971? will be payable on February 15 and August 15, 1971. Interest on the 1973? and February 15? 1977? will be payable on thereafter on February 15 and August 15 until The official circulars and subscription forms for the new issues of Treasury notes will be mailed in time to reach you by Monday, February 2; however, should you not receive the forms by Wednesday, February 4, subscriptions may be entered by mail or telegram, subject to confirmation on official subscription blanks. Yours very truly, P. E. Coldwell President
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