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FEDERAL RESERVE BAN K OF NEW YORK Fiscal Agent of the United States Circular No. 10,069 August 15, 1986 TREASURY TO AUCTION $10,000 MILLION OF 2-YEAR NOTES To A ll Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department: The Departm ent of the Treasury will auction $10,000 million of 2-year notes to refund $9,001 million of 2-year notes m aturing August 31, 1986, and to raise about $1,000 million new cash. The $9,001 million of m atur ing 2-year notes are those held by the public, including $1,123 million currently held by Federal Reserve Banks as agents for foreign and international m onetary authorities. The $10,000 million is being offered to the public, and any am ounts tendered by Federal Reserve Banks as agents for foreign and international monetary authorities will be added to that am ount. Tenders for such accounts 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 accounts, hold $858 million of the maturing securities that may be refunded by issuing additional am ounts of the new notes at the average price of accepted competitive tenders. 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 Daylight Saving time, Wednesday, August 20, 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 noncompetitive tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than A ugust 19. 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 of New York; checks endorsed to this Bank will not he 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 EE ISSUED SEPTEMBER 2, 1986 A m ount Offered: To the p u b lic .......................................................................................................... $10,000 million Descriptions off Security: Term and type of security..................................................................................... 2-year notes Series and CUSIP designation............................................................................ AD-1988 (CUSIP No. 912827 TY8) M aturity d a te .......................................................................................................... August 31, 1988 Call date .................................................................................................................. No provision Interest rate .............................. .................................................................... .. To be determined, based on the average of accepted bids Investment yield..................................................................................................... To be determined at auction Prem ium or discount............................................................................................. To be determined after auction Interest payment dates ......................................................................................... February 28, 1987; August 31, 1987; February 29, 1988; & August 31, 1988 M inimum denomination available...................................................................... $5,000 Terms off Sale: M ethod of s a le ....................................................................................................... Yield auction Competitive tenders ............................................................................................. Must be expressed as an annual yield, with two decimals, e.g., 7.10% 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 ........................................................... Paym ent through Treasury Tax and Loan (TT&L) Note A ccounts................................................................................................... Full payment to be submitted with tender Acceptable for TT&L Note Option Depositaries Deposit guarantee by designated institutions................................................... Acceptable Rey Dates: Receipt of te n d e rs ................................................................................................. Settlement (final payment due from institutions) a) cash or Federal fu n d s.................................................................................. b) readily collectible check.............................................................................. Wednesday, August 20, 1986, prior to 1:00 p.m ., EDST Tuesday, September 2, 1986 Thursday, August 28, 1986
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