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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent o f the United States Circular No. 10,006 February 19, 1986 TREASURY TO AUCTION $7,500 MILLION OF 5-YEAR 2-MQNTH NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department: The Department o f the Treasury will auction $7,500 million o f 5-year 2-month notes to raise new cash. Additional amounts o f the notes may be issued to Federal Reserve Banks as agents for foreign and international monetary authorities at the average price o f accepted competitive tenders. Printed on the reverse side is a table summarizing the highlights o f the offering. Copies o f the official offering circular will be furnished upon request directed to our Government Bond Division (Tel. No. 212-791-6619). In addition, enclosed is a copy o f the form to be used in submitting tenders for this offering. This Bank will receive tenders prior to 1:00 p.m ., Eastern Standard time, Wednesday, February 26, 1986, at the Securities Department o f its Head Office and at its Buffalo Branch. A ll competitive tenders, whether transmitted by mail or by other means, must reach this Bank or its Branch by that time. However, for investors who wish to submit noncompetitive tenders and who find it more convenient to mail their tenders than to present them in person, the official offering circular provides that noncompetitive tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than February 25. Bidders submitting noncompetitive tenders should realize that it is possible that the average price may be above par, in which case they would have to pay more than the face value for the securities. Payment with a tender may be made in cash, by check, in Treasury securities maturing on or before the issue date o f the securities being purchased, by a charge to an institution’s reserve account at this Bank, or, in the case o f Treasury Tax and Loan Note Option Depositaries, by credit to a Treasury Tax and Loan Note Account. Payment by check must be in the form o f an official bank check, a Federal funds check (a check drawn by a depository institution on its Federal Reserve account), or a personal check, which need not be certified. All checks must be drawn payable to the Federal Reserve Bank o f New Y ork; checks endorsed to this Bank will not be accepted. Recorded messages provide information about Treasury offerings and about auction results: at the Head Office — Tel. No. 212-791-7773 (offerings) and Tel. No. 212-791-5823 (results); at the Buffalo Branch — Tel. No. 716-849-5158 (offerings) and Tel. No. 716-849-5046 (results). Additional inquiries regarding this offering may be made by calling, at the Head O ffice, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016. E . G e r a l d C o r r ig a n , President. (Over) H IG H L IG H T S O F T R E A S U R Y O F F E R IN G TO T H E P U B L IC O F 5-Y E A R 2-M O N TH N O TES TO B E IS SU E D M A R C H 5, 1986 Amount O ffered: To the p u b lic ...................................................................... $7,500 million Description off Security: Term and type o f security.............................................. 5-year 2-month notes Series and C U SIP d esignation ..................................... Series J-1991 (C U SIP No. 912827 T J1 ) M aturity d a te ...................................................................... May 15, 1991 Call d a te ............................................................................... No provision Interest r a t e .......................................................... ............. To be determined, based on the average o f accepted bids Investment yield................................................................. To be determined at auction Premium or d isco u n t....................................................... To be determined after auction Interest payment d a t e s ....................... ........................... November 15 and May 15 (first payment on November 15, 1986) Minimum denomination available.............................. $1,000 Terms o f Sale: Method o f s a le .................................................................... Yield auction Competitive tenders ........................................................ Must be expressed as an annual yield, with two decimals, e . g ., 7.1 0 % Noncompetitive te n d e r s ................................................. Accepted in full at the average price up to $1,000,000 Accrued interest payable by investor.......................... None Payment by non-institutional in v e s to rs ................... Full payment to be submitted with tender Payment through Treasury Tax and Loan (TT& L) Note A cco u n ts............................................................... Deposit guarantee by designated institu tion s......... Key Dates: Receipt o f te n d e rs ............................................................ Settlement (final payment due from institutions) a) cash or Federal fund s............................................ b) readily collectible ch eck ........................................ Acceptable for T T & L Note Option Depositaries Acceptable Wednesday, February 26, 1986, prior to 1:00 p .m ., E S T Wednesday, M arch 5, 1986 M onday, M arch 3, 1986 /o( TREASURY NEWS ©@P(SE?g[Mi@m@ ©g ®te© e w asM n sitsm , B .f . e TOispftare® s@@=a®<si RESULTS OF AUCTION OF 5-YEAR 2-MONTH NOTES Auction date: February 26 , 1986 The D epartm ent o f th e T r ea su r y has a c c e p te d $ 7 ,5 2 0 m i l l i o n o f $19^ 156 m i l l i o n o f te n d e r s r e c e iv e d from th e p u b lic fo r th e 5 ° y e a r 2 -a o n th n o t e s , S e r ie s J - 1 9 9 1 , a u c tio n e d to d a y 0 The n o t e s w i l l be is s u e d March 5? 1986* and m ature May 15* 1 9 9 1 0 The i n t e r e s t r a t e on th e n o t e s w i l l be 8“ l/8 % 0 The ra n g e o f a c c e p te d c o m p e t it iv e b i d s , and t h e c o r r e sp o n d in g p r ic e s a t th e 8-1/8% i n t e r e s t r a t e a r e as f o llo w s § Y ie ld P r ic e Low 8 o10% 100 o043 High 8 o 13% 99 o918 A verage 8 o12% 99 o960 T enders a t th e h ig h y i e l d w ere a l l o t t e d 43% o TENDERS RECEIVED AMD ACCEPTED (In T h ousan ds) R e c e iv e d L o c a tio n A ccep ted B oston $ 1 0 ,1 4 3 $ 1 0 ,1 4 3 Mew York 16 * 502 , 071 6 ,5 3 3 ,3 3 8 6 * 000 P h ila d e lp h ia 6 ,0 0 0 1 4 7 ,0 0 5 8 1 ,9 3 0 C le v e la n d 4 7 ,3 3 7 1 7 ,6 3 7 Richmond 3 2 ,9 7 9 A tla n ta 2 5 ,4 0 9 1 ,4 6 0 ,9 6 1 5 8 1 ,2 1 1 C hicago 8 0 /7 6 8 6 3 ,7 6 8 Sto L o u is 1 7 ,1 3 4 M in n e a p o lis 1 5 ,9 9 4 4 4 ,7 8 7 K ansas C ity 4 4 ,2 8 7 1 0 ,9 0 9 D a lla s 9 ,7 6 9 7 9 5 ,3 9 1 San F r a n c is c o 1 2 9 ,6 9 1 T rea su ry 726 726 1 1 9 ,1 5 6 ,2 1 1 $ 7 ,5 1 9 ,9 0 3 T o t a ls The $7(7520 m i l l i o n o f a c c e p te d te n d e r s in c lu d e s $450 m i l l i o n o f n o n c o m p e titiv e t e n d e r s and $7(7 070 m i l l i o n o f eo m p eti t i v e t e n d e r s fro® th e p u b l i c 0 In a d d it io n t o th e $ 7 ,5 2 0 m i l l i o n o f te n d e r s a c c e p te d in t h e a u c t io n p r o c e s s , $318 m i l l i o n o f te n d e r s was awarded a t t h e a v e r a g e p r ic e t o F e d e r a l R e se r v e Banks a s a g e n ts fo r f o r e i g n and i n t e r n a t i o n a l m onetary a u t h o r i t i e s 0 Federal Reserve Bank of New York [Ref. Cir. No. 10,006]
@FedFRASER