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FEDERAL RESERVE BANK OF DALLAS
F IS C A I. A G E N T O F T H E U N IT ED ST A T E S

Dallas, Texas, July 25, 1960

PRELIM INARY A N N O U N C E M E N T
TREASURY F IN A N C IN G

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:
“The holders of $9.6 billion of 4% percent Treasury notes maturing August
15, 1960, and of $0.8 billion Federal National Mortgage Association SYs percent
notes maturing August 23, 1960, will not be offered preemptive rights to ex­
change their holdings for new securities to be offered later this week. Both
maturing issues will be paid off in cash. Approximately $4.7 billion of the two
maturing issues are publicly held.
“The necessary funds will be provided by a new issue, or issues, of direct
Treasury obligations offered for cash subscription and by a reduction in the
Treasury cash balance. The new issue, or issues, to be offered will aggregate
approximately $9 billion as against the aggregate of $10.4 billion of securities
being paid off.
“Subscribers to the new issue, or issues, who hold the maturing securities
may, if they wish, deposit them at IFace value in lieu of any cash down payments
required with subscriptions. To the extent subscribers are allotted the new secur­
ities, the Treasury will accept the maturing securities in lieu of cash in making
final payments. Accrued interest on the FNMA notes will be adjusted as of
August 15, the expected delivery date of the new securities.
“An announcement of the terms of the new issue, or issues, will be made
later this week.”
Official circulars and subscription forms will be mailed after the Treasury Depart­
ment announces the terms of the new offering.
Yours very truly.
Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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