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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 10,035 May 15, 1986 T R E A S U R Y TO AU CTIO N $9,7§0 M IL L IO N O F 2-Y E A R N O TES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department: The Department of the Treasury will auction $9,750 million of 2-year notes to refund $8,548 million of 2-year notes maturing May 31, 1986, and to raise about $1,200 million new cash. The $8,548 million of maturing 2-year notes are those held by the public, including $900 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. The $9,750 million is being offered to the public, and any amounts tendered by Federal Reserve Banks as agents for foreign and international monetary authorities will be added to that amount. Tenders for such ac counts will be accepted at the average price of accepted competitive tenders. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own ac counts, hold $644 million of the maturing securities that may be refunded by issuing additional amounts of the new notes at the average price of accepted competitive tenders. Printed on the reverse side is a table summarizing the highlights o f the offering. Copies of the official offering circular will be furnished upon request directed to our Government Bond Division (Teh 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 .5 Eastern Daylight Saving time, Wednesday, May 21, 1986, at the Securities Department of 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 noncom petitive tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than M ay 20. 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 of 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 o f New York; 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 Office, 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) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED JUNE 2, 1986 Amount Offered: To the public $9,750 million Description of Security: Term and type of security............. 2-year notes Series and CUSIP designation . . . Z-1988 (CUSIP No. 912827 TR3) Maturity date.................................. May 31,1988 Call d ate.......................................... No provision Interest r a t e .................................... To be determined, based on the average of accepted bids Investment yield.............................. To be determined at auction Premium or discount..................... To be determined after auction Interest payment d a tes................. November 30 and May 31 Minimum denomination available $5,000 Terms of Sale: Method of sale____ Yield auction Competitive tenders Must be expressed as an annual yield, with two decimals, e.g., 7.10% Noncompetitive tenders............................................. Accepted in full at the average price up to $1,000,000 Accrued interest payable by investor....................... None Payment by non-institutional investors................. Full payment to be submitted with tender Payment through Treasury Tax and Loan (TT&L) Note Accounts......................................................... Deposit guarantee by designated institutions Key Dates: Receipt of tenders Settlement (final payment due from institutions) a) cash or Federal funds.................................... b) readily collectible check Acceptable for TT&L Note Option Depositaries Acceptable Wednesday, May 21,1986, prior to 1:00 p.m., EDST Monday, June 2,1986 Thursday, May 29,1986 f t f d f 0 5 S TREASURY NEWS departm ent o f th e Treasury • W ashington, D .c . • Telephone 566-2041 RESULTS OF PREVI OUS AUCTION OF 2 - Y E A R NOTES A u ction date: May 21, 1986 Th© D e p a r t m e n t th© T r e a s u r y h a s a c c e p t e d $ 9 , 8 1 1 m illion of $35,599 m i l l i o n o f t e n d e r s r e c e i v e d from t h e p u b l i c f o r t h e 2 -y ea r n o te a . S e r i e s Z -1988, au ctioned today. The n o t e s w i l l be ieeueS 2 0 191®* matur© May 31* 2J§®o Th© i n t e r n e t r a t e o n t h e n o t e s w i l l fo<© 7 - l / i i e Th© rang© o f a c c e p t e d c o m p e t i t i v e b i d s , and t h e c o r r e s p o n d i n g p r i c e s a t t h e 7 - 1 / S i r a t ® ££© a s f o l l o w s i xteia 7.S04 7.20<1 7.206 Ugh Average T<snd©r$ a t th© h i g h y i e l d war© a l l a t t a i P rice 99.863 $9,863 99.863 81%. TENDERS RECEIVED AS® ACCEPTED ( l a T h o u s a n d s ) L ocation Boston S3ej<f X e r k Philadelp hia Cl©veland Richmond A tlan ta Chioaf© ® t Q Louis M inneapolis Kansas C it y B alias i&n F s a n c i o e © Treasury T otals Raoeivad 110,335 3 2 ,0 2 4 ,4 1 5 27,715 80,320 94,795 36,205 1 ,4 7 7 ,8 4 5 101,310 51,510 129,655 17,355 1 ,411,970 5,160 1 3 5 ,3 9 $ ,0 8 0 $ Th© 1 9 , i l l M i l l i o n ©f a e e o p t o d t e n d e r s 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 © and $ 9 , 0 3 8 t i v e t e n d e r ® fr o m t h e p u b l i c o Aeoaotad 87,338 9 ,156,505 27,785 45,520 41,795 13,205 152,863 99,310 41,510 122,615 17,885 29,970 6 o 160 $ 9 ,8 1 1 ,1 7 0 5 i n c l u d e ® $773 m illio n o f com poti- I n a d d i t i o n i© t h e $ 1 , 8 1 1 m i l l i o n o f t e n d e r ® ac c©pt©d i n t h e a u c t i o n p r © c e ® s , $ 1 7 8 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 o a t© F e d e r a l R©®<arve l i n k s a s a s e n t i f o r f © r © i g n and in t © r n a t i © n a l monetary a u t h o r i t i e s . An a d d i t i o n a l $ 6 4 4 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 Government a c c o u n t ® and F e d e r a l R e s e r v e lank® f o r t h o i r own a c c o u n t i n ©Kchang© f o r m a t u r i n g s ® @ u r i t i t i 0 F e d e ra l R e se rv e R ank of N ew Y ork [R ef. C ir. No. 1 0 .0 3 5 J
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