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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States Circular No. 8739 I January 17, 1980 r < TREASURY TO AUCTION $4,000 MILLION OF 2-YEAR NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued yesterday by the Treasury Department: The Department of the Treasury will auction $4,000 million of 2-year notes to refund $3,472 million of notes maturing January 31, 1980, and to raise $528 million new cash. The $3,472 million of maturing notes are those held by the public, including $673 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 ac counts, hold $403 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 security may also be issued at the average price to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount of maturing securities held by them. 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 Treasury and Agency Issues 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 Standard time, Wednesday, January 23, 1980, 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 in vestors 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 January 22. 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; checks endorsed to this Bank will not be accepted. A personal check submitted 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.” Recorded messages provide information about this and other 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. 716-849-5046. Additional inquiries regarding this offering may be made by call ing, at the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016. Thomas M. T imlen , First Vice President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED JANUARY 31, 1980 (Delivery date for coupon securities is February 8, 1980) Amount Offered: To the public $4,000 million Description of Security: Term and type of security............. 2-year notes Series and CUSIP designation . . . Series N-1982 (CUSIP No. 912827 KH4) M aturity d a te .................................. January 31,1982 Call d a t e ........................................... No provision Interest coupon r a t e ...................... To be determ ined, based on the average of accepted bids Investment yield.............................. To be determined at auction Prem ium or discount...................... To be determined after auction Interest paym ent d a t e s ................. July 31 and January 31 M inimum denom ination available $5,000 Terms of Sale: M ethod of s a le ......................................................................................................... Yield auction Accrued interest payable by investor.................................................................. None Preferred allo tm en t................................................................................................ Noncompetitive bid for $1,000,000 or less Deposit re q u irem en t.............................................................................................. 5% of face am ount Deposit guarantee by designated in stitu tio n s................................................... Acceptable Key Dates: Deadline for receipt o f tenders............................................................................. Settlement date (final paym ent due) a) cash or Federal fu n d s................................................................................... W ednesday, January 23, 1980, by 1:30 p.m ., EST Thursday, January 31, 1980 b) check drawn on bank within FRB district where s u b m itte d ............... Tuesday, January 29, 1980 c) check drawn on bank outside FRB district where subm itted ............... M onday, January 28, 1980 Delivery date for coupon securities.................................................................... Friday, February 8,1980
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