Full text of Federal Reserve Bank of New York Circulars : 8281. Results of Auction of 2-year Notes and Correction of Results of 3-1/4 Year Notes

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FEDERAL RESERVE BANK
O F N E W YORK
Fiscal Agent of the United States
Circular N o. 8281
February 21 , 1978

RE S U LT S OF A U C T I O N OF 2- Y EA R NOTES
A ND C O R R E C T I O N OF RE SULTS OF 3 - 1/ 4 - Y E A R NOTES
T o A l l B a n k in g I n s t i t u t i o n s , a n d O t h e r s C o n c e r n e d ,
in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t :

The T r e a s u r y D e pa r t m e n t has r e l e as e d the foll ow ing results
of its au ct i on on F e br u ar y 16 of 2-year notes of Series L-1980:
The Department of the Treasury has accepted $3,238 million of
$5,220 million of tenders received from the public for the 2-year
notes, Series L-1980, auctioned today [F e b r u a r y 1 6 ] .
The range of
accepted competitive bids was as follows:
Lowest yield..... 7 .67 # ^
Highest yield.... 7.71#
Average yield....7.70#

E xcepting f iv e te n d e r s t o t a l i n g

$15,^80,000.

The interest rate on the notes will be 7-5/8#. At the 7-5/8#
rate, the above yields result in the following prices:
L o w - y i e l d p r i c e ..... 99*918
High-yield price.... 99.8^5
A v e r a g e - y i e l d p r i c e . . 9 9 • 863

The $3,238 million of accepted tenders includes $507 million of
noncompetitive tenders and $2,595 million of competitive tenders
(including 1# of the amount of notes bid for at the high yield) from
private investors. It also includes $136 million of tenders at the
average price from Federal Reserve Banks as agents for foreign and
international monetary authorities in exchange for maturing securities.
In addition, $557 million of tenders were accepted at the average
price from Government accounts and Federal Reserve Banks for their own
account in exchange for securities maturing February 28, 1978 ($53 mil­
lion) and from Federal Reserve Banks as agents for foreign and
international monetary authorities for new cash ($50U million).




(O ver)

In addition, the T r e a su r y has in f or m e d this Bank of an
er r o r in the r ep or t in g of y i e l d / p r i c e eq ui va l e n ts for the 3-1/4y ea r notes, Series M-1981, a u c t i o n e d J a n ua r y 31.
The results of
the au ct i o n w e r e a nn o u n c e d in our C i rc u l a r No. 8268, da ted
F e b r u a r y 3, 1978.
F o l l o w i n g is the c o r r e ct e d p ri ce information:
Low-yield price......99*935
High-yield price.....99*792
Average-yield price...99*8^9
All ot he r p a r t i c u l a r s
the same.




r eg a r di n g the results of the auc ti on re main

P aul A. V olcker,
P resident.