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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 10118 December 11, 1986 TREASURY AUCTION OF 2-YEAM AND 4-YEAR NOTES TOTALING $18,000 MILLION To A ll Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement has been issued by the Treasury Department: The Treasury will raise about $2,925 million of new cash by issuing $10,250 million of 2-year notes and $7,750 million of 4-year notes. This offering will also refund $15,077 million of securities maturing December 31, 1986. The $15,077 million of maturing securities are those held by the public, including $1,681 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. The $18,000 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 accounts will be accepted at the average prices of accepted competitive tenders. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own ac counts, hold $943 million of the maturing securities that may be refunded by issuing additional amounts of the new securities at the average prices of accepted competitive tenders. Printed on the reverse side is a table summarizing the highlights of the offerings. Copies of the official offering circulars will be furnished upon request directed to our Issues Division (Tel. No. 212-720-6619). In addition, enclosed are copies of the forms to be used in submitting tenders. This Bank will receive tenders at the Securities Department of its Head Office and at its Buffalo Branch on the dates and times specified on the reverse side of this circular as the deadlines for receipt of tenders. A l l c o m p e t i t i v e t e n d e r s , whether transmitted by mail or by other means, must reach this Bank or its Branch by that time on the specified dates. 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 for each offering provides that n o n c o m p e t i t i v e tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no later than the date preceding the date specified for receipt of tenders. 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 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 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 th is B a n k w ill n o t b e a c c e p te d . Recorded messages provide inform ation about Treasury offerings and about auction results: at the Head Office — Tel. No. 212-720-7773 (offerings) and Tel. No. 212-720-5823 (results); at the Buffalo Branch — Tel. No. 716-849-5158 (offerings) and Tel. No. 716-849-5046 (results). Additional inquiries re garding this offering may be made by calling, at the Head Office, Tel. No. 212-720-6621, or, at the Buffalo Branch, Tel. No. 716-849-5016. E. Gera ld C o r r ig a n , P r e s id e n t. (Over) HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF 2-YEAR AND 4YEAR NOTES TO BE ISSUED DECEMBER 31, 1986 2-Year N otes 4-Year N otes A m ou nt O ffered: T o the p u b lic ........................................... $10,250 m illion $7,750 m illion Description o f Security: Term and type o f s e c u r ity .................. 2-year notes 4-year notes Series and C U SIP designation............ Series A H -1988 (C U SIP N o . 912827 UJ9) Series R-1990 (C U SIP N o . 912827 UK6) M aturity d a t e ......................................... Decem ber 31,1988 Decem ber 3 1 ,1 9 9 0 Call d ate.................................................... N o provision N o provision Interest r a te ............................................. T o be determ ined, based on the average o f accepted bids T o be determ ined, based on the average o f accepted bids Investm ent y i e l d .................................... T o be determined at auction T o be determ ined at auction Prem ium or d is c o u n t........................... T o be determined after auction T o be determ ined after auction Interest paym ent d a te s ......................... June 30 and Decem ber 31 June 30 and Decem ber 31 M in im u !; denom ination available . . $5,000 $1,000 Yield auction Yield auction C om petitive te n d e r s.............................. M ust be expressed as an annual yield, with two decimals, e.g., 7.10% M ust be expressed as an annual yield, with two decimals, e.g., 7.10% N oncom petitive ten d ers....................... Accepted in full at the average price up to $1,000,000 Accepted in full at the average price up to $1,000,(XX) Accrued interest payable by investor . . N on e N on e Full Paym ent to be subm itted with tender Full Paym ent to be subm itted with tender Acceptable for TT&L N ote O ption Depositaries Acceptable for TT&L N ote O ption Depositaries Acceptable A cceptable W ednesday, Decem ber 17,1986, Thursday, Decem ber 18,1986, Terms o f Sale: M ethod o f s a l e ....................................... Paym ent by non-institutional investors....... . .................................... Paym ent through Treasury Tax and L oan (TT&L) N ote A ccou nts----- D eposit guarantee by designated institution s......................................... Key Bates: Receipt o f ten d ers.................................. prior to 1:00 p.m ., EST prior to 1:00 p.rau, EST a) cash or Federal f u n d s ................ W ednesday, Decem ber 3 1 ,1 9 8 6 W ednesday, Decem ber 3 1 ,1 9 8 6 b) readily collectible c h e c k ............ M onday, Decem ber 2 9 ,1 9 8 6 M onday, Decem ber 2 9 ,1 9 8 6 Settlement (final payment due from institutions)
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