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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States Circular No. 8439 October 18, 1978 T R E A S U R Y T O A U C T IO N $ 3 ,2 5 0 M IL L IO N O F 2 Y E A R N O T E S 7*o /t // /?;.sO'n/UoM.s. ooJ Offers Cooccroc<7. o /c^co7CJr/ ; A co< rca D^rc. /t/t The following statement was issued yesterday by the Treasury Department: The Department of the Treasury will auction $3,250 million of 2-year notes to refund $2,718 million of notes maturing October 31, 1978, and raise $532 million new cash. The $2,718 million of maturing notes are those held by the public, including $705 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. In addition to the public holdings, Government accounts and Federal Reserve Banks^ for their own accounts, hold $203 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. Additional amounts of the new securities may also be issued at the average price, for new cash only, to Federal Reserve Banks as agents for foreign and international monetary authorities. 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). Enclosed is a copy of a standard form that can be used in submitting tenders for this offering (or for any subsequent offering of 2-year notes). This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, October 24, 1978, at the Securities Department of its Head Office and at its Buffalo Branch, ,4// compcft'f/ve fevers, 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 MOMCOfwpeftftvf tenders will be considered timely received if they are mailed to this Bank or its Branch under a postmark no /afer f/mn October 2? J. 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 may be made by personal check, or an official bank check, payable on its face to the Federal Reserve Bank of New York; cAec^-s endorse;/ to f/n's n't// not accepted. A personal check sub mitted with the tender, either as a deposit or for the face amount of the securities, does not have to be certified. However, in cases where only a deposit is submitted with the tender, a personal check submitted for the final payment must be certified. As provided in the official offering circular, "in every case where full payment is not completed on time, the deposit submitted with the tender, up to 5 percent of the face amount of securities allotted, shall, at the discretion of the Secretary of the Treasury, be forfeited to the United States." A recorded message (at the Head Office — Tel. No. 212-791-5823; at the Buffalo Branch — Tel. No. 716-849-5046) provides information about this and other Treasury offerings; 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. (If the inquiry relates to competitive tenders, however, the Head Office number to call is 212-791-5465.) PAUL A. VOLCKER, (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED OCTOBER 31, 1978 (De/fve/y t/afeybr coupon sccur^es is Novc/nAcr 797^) Amount Offered: To the public................................. $3,250 million Description of Security: Term and type of security............ 2-year notes Series and CUSIP designation . . . Series U-1980 (CUSIP No. 912827 JC7) Maturity d a t e ............................... October 31, 1980 Cal! date ....................................... No provision Interest coupon rate..................... 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 dates................. April 30 and October 31 Minimum denomination available $5,000 Terms of Sale: Method of s a le .................................................................................................... Yield auction Accrued interest payable by investor................................................................ None Preferred allotment............................................................................................ Noncompetitive bid for $1,000,000 or less Deposit requirement............................................................................................ 5% of face amount Deposit guarantee by designated institutions................................................... Acceptable Key Dates: Deadline for receipt of tenders.......................................................................... Tuesday, October 24, 1978, by 1:30 p.m., EDST Settlement date (final payment due) a) Cash or Federal funds .................................................................................Tuesday, October 31, 1978 b) Check drawn on bank within FRB district where submitted..................Friday, October 27, 1978 c) Check drawn on bank outside FRB district where submitted................Thursday, October 26, 1978 Delivery date for coupon securities..................................................................... Friday, November 3, 1978