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'I FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 1®,037 May 21, 1986 TREASURY TO AUCTION $7,75® MILLION OF S-YEAR 2-MONTH 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 of the Treasury will auction $7,750 million of 5-year 2-month notes to raise new cash. Additional amounts of the notes may be issued to Federal Reserve Banks as agents for foreign and international monetary authorities at the average price of 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 Daylight Saving time, Wednesday, May 28, 1986, at the Securities Department o f its Head O ffice and at its B u ffalo 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 M ay 27. 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 A ccount. 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 B ank will n o t be accepted. Recorded messages provide inform ation about Treasury offerings and about auction results: at the Head O ffice — Tel. No. 212-791-7773 (offerings) and Tel. No. 212-791-5823 (results); at the B uffalo 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 B u ffalo 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 5-YEAM 2-MONTH NOTES TO BE ISSUED JUN E 3, 1 * Amount Offered: To the public $7,750 million Description off Security: Term and type of security.......................................... 5-year 2-month notes Series and CUSIP designation.................................. Series K-1991 (CUSIP No. 912827 TS1) Maturity date................................................................ August 15, 1991 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 te s............................................... February 15 and August 15 (first payment on February 15, 1987) Minimum denomination available............................ $ 1,000 Terms off Sale: Method of sale.............................................................. Yield auction Competitive tenders ................................................... Must be expressed as an annual yield, with two decimals, e.g., 7.10% Noncompetitive ten d ers............................................. 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......... Hey 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 28, 1986, prior to 1:00 p.m., EDST Tuesday, June 3, 1986 Friday, May 30, 1986 /ff 0,D I 3 7 TREASURY NEWS ©@[5)(a!PSKfa@[fBG ®(? Sftl® ¥P@(s]§El[?^ O ?£7(s]3 K)8iT)Sj£®Eri)„ ®o@. O ,ff@0@[°)K)®K)® i@@=g@iSB RESULTS OF AUCTION OF 5 - Y E A R 2-MONTH NOTES A u ction dates May 2 8 , 1986 The Department ®£ the Treasury has accepted $7*756 million of $18*080 million of tenders received from the public for the 5-year 2-®onth notes* Series R-1991* auctioned today0 The notes will be issued June 3* 1986* and mature August 15, 1991. The interest rate on the notes will be 7-1/2%. The range of accepted competitive bids, and the corresponding prices at the 7-1/2% interest rate are as follows 8 Yield ^rice ILow 1 o50% 99 o946 High 7 o55% 99 o734 7 o53% Average 99 o819 Tenders at the high yield were allotted 65%. TEHDERS RECEIVED AHB ACCEPTED (In Thousands) Received Location Accepted Boston $ 7*738 $ 7,738 Hew York 16*211,962 7,107*962 Philadelphia 4*328 4*328 Cleveland 19*425 16*425 Richmond 32*667 31*617 Atlanta 34*277 30*177 Chicago 975*466 321*016 Sto Louis 82*600 66*250 Minneapolis 11*983 11*683 25*624 Kansas City 25*624 Balias 8 * 0 1 2 5*312 San Francisco 665*069 127*119 Treasury 816 816 Totals 118,079,967 $7,756,067 The $7 plSS Billion of accepted tenders includes $337 aillion of noncompetitive tenders and $7*419 million of eompetitive tenders from the publico In addition to the $7*756 aillion of tenders accepted in the auction process* $15 million of tenders was awarded at the average price to Federal Reserve Banks as agents for foreign and international monetary authoritiese
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