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FEDERAL RESERVE BANK OF NEW YORK F isca l A g e n t o f th e U n ite d S ta tes Circular No. 10,025 April 17, 1986 TREASURY TO AUCTION $9,750 MILLION OF 2-YEAR NOTES To A l l B a n k in g In s titu tio n s , a n d O thers Concerned, in the Second F e d e ra l Reserve D is tric t: The following statement was issued by the Treasury Department: T h e D e p a r tm e n t o f th e T rea su ry w ill a u c tio n $ 9 ,7 5 0 m illio n o f 2 -y ea r n o te s to re fu n d $ 8 ,0 7 9 m illio n o f 2-year n o te s m a tu rin g A p r il 3 0 , 1986, an d to ra ise a b o u t $ 1 ,6 7 5 m illio n n ew c a sh . T h e $ 8 ,0 7 9 m illio n o f m a tu r in g 2 -y ea r n o te s are th o s e h e ld b y th e p u b lic , in c lu d in g $ 4 5 2 m illio n cu rren tly h e ld b y F ed er a l R ese rv e B a n k s as a g en ts fo r fo r e ig n a n d in te r n a tio n a l m o n e ta r y a u th o r itie s. T h e $ 9 ,7 5 0 m illio n is b ein g o ffe r e d to th e p u b lic , an d a n y a m o u n ts ten d e re d b y F ed era l R ese rv e B a n k s as a g en ts fo r fo r e ig n a n d in te r n a tio n a l m o n e ta r y a u th o ritie s w ill b e a d d e d to th a t a m o u n t. T en d ers fo r su ch a c co u n ts w ill b e a cc ep ted at th e a v era g e p rice o f a cc e p te d c o m p e titiv e ten d e rs. In a d d itio n to th e p u b lic h o ld in g s, G o v e r n m e n t a c c o u n ts a n d F ed era l R ese rv e B a n k s, fo r th eir o w n a c c o u n ts, h o ld $ 1 ,1 2 9 m illio n o f th e m a tu rin g secu rities th a t m a y b e r e fu n d e d b y issu in g a d d itio n a l a m o u n ts o f th e n ew n o te s at th e a v era g e p rice o f a c c e p te d c o m p e titiv e ten d e rs. Printed on the reverse side is a table summarizing the highlights of the offering. Copies of 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 of 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, April 23, 1986, at the Securities Department of its Head Office and at its Buffalo Branch. A l l c o m p e t i t i v e t e n d e r whether s, 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 n o n c o m p e t i t i v tenders will be e considered timely received if they are mailed to this Bank or its Branch under a postmark n o l a t e r t h a n A p r il 22. 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 of 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 of 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 of New York; c h e c k s e n d o r s e d t o t h is B a n k w ill n o t b e a c c e p t e d . 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 Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016. E. Gerald Co r r ig a n , P r e s id e n t . (O ver) 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 T O T H E P U B L IC O F 2 -Y E A R N O T E S T O B E IS S U E D A P R IL 3®, A m o r a l O ffe r e d : T o th e p u b l i c .......................................................................................................................... . $ 9 ,7 5 0 m illio n B escrip tio m o f S ecu rity : T erm a n d ty p e o f s e c u r it y ................................................................................................. . 2 -year n o te s S eries a n d C U S I P d e sig n a tio n ........................................................................................ . S eries Y - 1988 (C U S IP N o . 9 1 2 8 2 7 T N 2 ) M a tu rity d a t e .......................................................................................................................... . A p r il 30, 1988 C a ll d a t e .................................................................................................................................... . N o p r o v isio n In terest r a t e ............................................................................................................................. . T o b e d e ter m in ed , b a sed o n th e a v era g e o f a cc ep ted b id s In v estm en t y ie ld ..................................................................................................................... . T o b e d eter m in ed at a u c tio n P re m iu m or d is c o u n t ........................................................................................................... . T o b e d eterm in ed a fte r a u c tio n In terest p a y m e n t d a t e s ...................................................................................................... . O c to b er 31 a n d A p r il 30 M in im u m d e n o m in a tio n a v a ila b le ................................................................................ . $ 5 ,0 0 0 T erm s o f S ale: M e th o d o f s a l e ........................................................................................................................ . Y ield a u c tio n C o m p e titiv e ten d ers ........................................................................................................... . M u st b e ex p ressed as a n a n n u a l y ie ld , w ith tw o d e c im a ls, e .g ., 7 .1 0 % N o n c o m p e titiv e t e n d e r s .................................................................................................... . A c c e p te d in fu ll at th e a v era g e p rice u p to $ 1 , 0 0 0 , 0 0 0 A cc ru ed in terest p a y a b le b y in v e s t o r ........................................................................... . N one P a y m e n t b y n o n -in s titu tio n a l i n v e s t o r s .................................................................... . F u ll p a y m e n t to b e su b m itte d w ith ten der P a y m e n t th r o u g h T rea su ry T ax a n d L o a n (T T & L ) N o te A c c o u n t s ................................................................................................................... . A c c e p ta b le fo r T T & L N o te O p tio n D ep o sita rie s D e p o s it g u a ra n te e b y d esig n a ted in s t it u t io n s .......................................................... . A c c e p ta b le K ey D a tes: R eceip t o f t e n d e r s ................................................................................................................ . W ed n esd a y , A p ril 2 3 , 1986, p rior to 1:00 p .m ., E S T S ettle m en t (fin a l p a y m e n t d u e fr o m in stitu tio n s) a) ca sh or F ed era l f u n d s ............................................................................................... . W e d n e sd a y , A p r il 30, 1986 b ) rea d ily c o lle c tib le c h e c k .......................................................................................... . M o n d a y , A p ril 2 8 , 1986 t'lu V q o i s - TREASURY NEWS l[o)(ol[?20^®raG ®ff Gin)® o W (°}3M [a}@G®[xD0 ®o®o O c 3 u®§@ptl@n@ 2041 RESULTS OF PREVIOUS AUCTION OF 2-YEAR NOTES Auction date: April 23, 1986 The D e p a r t m e n t ©f t h e T r e a s u r y h a s a c c e p t e d $ 9 * 7 5 2 m illio n of $18*300 m i l l i o n ©f t e n d e r s r e c e i v e d fr o m t h e p u b l i c f o r t h e 2 = y e a r n o t e s „ S e r i e s Y=198®* a u c t i o n e d t o d a y » The n o t e s w i l l b e i s s u e d A p r i l 30 0 1 9 8 6 * and m a t u r e A p r i l 30 c 198® „ , The i n t e r e s t r a t e ©n t h e n o t e s w i l l b e 6 = 5 / 8 % . The r a n g e o f a c c e p t e d c o m p e t i t i v e b i d s * and t h e c o r r e s p o n d i n g p r i c e s a t t h e 6 = 5 / 8 % i n t e r e s t r a t e are as follow s § Low High Average Y ield 6.63% !/ 6.73% 6 o 68% P rice 99.991 99.807 99.899 T e n d e r s a t t h e h i g h y i e l d we r e a l l o t t e d 42%. TENDERS RECEIVED AND ACCEPTED ( I n T h ou sa nd s 5 L ocation Boston New Y o r k P hilad elp hia C leveland Richmond A tlan ta Chicago Sto L o u is M inneapolis Kansas C i t y D allas San F r a n c i s c o Treasury T otals Received $ 17,655 1 5 , 3 2 8 , 500 20*350 45*460 72*315 91*955 1 ,5 5 7 ,7 0 0 89*455 31*660 111*720 21*225 907*680 4*58.5 1 1 8 ,3 0 0 ,2 5 0 The $ 9 * 7 5 2 m illio n of accepted tend ers m i l l i o n o f n o n c o m p e t i t i v e t e n d e r s and $ 9 * 0 1 2 t i v e t e n d e r s from t h e p u b l i c „ Accepted $ 17*655 7,97 9 *4 4 0 20*350 45*460 62*315 90,955 972*700 73*455 31*660 111*720 21,225 320*680 4*585 $ 9 ,7 5 2 ,2 0 0 in c lu d e s $740 m illio n o f com p eti In a d d itio n to the $9*752 m illio n o f te n d e rs a cce p te d in the- a u c t i o n p r o c e s s * $3®5 m i l l i o n o f t e n d e r s was awarded a t t h e a v e r a g e p r i c e t o F e d e r a l R e s e r v e Ba nk s a s a g e n t s f o r f o r e i g n and i n t e r n a t i o n a l m o n e t a r y a u t h o r i t i e s 0 An a d d i t i o n a l $ 1 * 1 2 9 m i l l i o n o f t e n d e r s was a l s o a c c e p t e d a t t h e a v e r a g e p r i c e fr o m G o v e r n m e n t a c c o u n t s and F e d e r a l R e s e r v e B a n k s f o r t h e i r own a c c o u n t i n exchange f o r m aturing s e c u r i t i e s . 1 / Excepting 1 tend er o f $2*000*000. r ederal Reserve Bank of New York 'Ref. Cir. No. 10,025]
@FedFRASER