View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102