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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9344 August 19, 1982 TREASURY TO AUCTION $6,500 MILLION OF 2-YEAR NOTES To A ll B an kin g In stitu tio n s, a n d O th ers C o n cern ed , in th e S e co n d F ederal R eserve D istrict: The following statement was issued by the Treasury Department: The Department of the Treasury will auction $6,500 million of 2-year notes to refund $4,557 million of notes maturing August 31, 1982, and to raise $1,943 million new cash. The $4,557 million of maturing notes are those held by the public, including $700 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities. The $6,500 million is being offered to the public, and any amounts tendered by Federal Reserve Banks as agents for foreign and international monetary authorities (including the $700 million of maturing securities) will be added to that amount. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $570 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. 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 for your use 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, Wednesday, August 25, 1982, at the Securities Department of its Head Office and at its Buffalo Branch. All 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 August 24. 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 w ith a tender may be in the form of a personal check, which need not be certified, an official bank check, or a Federal funds check (a check drawn by a depository institution on its Federal Reserve account). All checks must be drawn payable to the Federal Reserve Bank of New York; checks endorsed to this Bank will not he accepted. Payment may also be made in cash or in Treasury securities maturing on or before the issue date of the securities being purchased. 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. 716-849-5046. 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. ANTHONY M . SOLOMON, President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED AUGUST 31, 1982 (Delivery date for coupon securities is September 16,1982) Amount Offered: To the public..................................................................................................... . $6,500 million Description of Security: Term and type of security................................................................................ . 2-year notes Series and CUSIP designation........................................................................ . Series V-1984 (CUSIP No. 912827 NN8) Maturity date..................................................................................................... . August 31, 1984 Call d ate............................................................................................................. . No provision Interest coupon r a te ........................................................................................ . 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 d ates.................................................................................... . February 28 and August 31, 1983; February 29 and August 31, 1984 Minimum denomination available.................................................................. . $5,000 Terms of Sale: Method of sale................................................................................................... . Yield auction Accrued interest payable by investor.............................................................. None Preferred allotment.......................................................................................... . Noncompetitive bid for $1,000,000 or less Payment by non-institutional investors....................................................... . Full payment to be submitted with tender Deposit guarantee by designated institutions............................................... . Acceptable Key Dates: Deadline for receipt of tenders........................................................................ . Wednesday, August 25, 1982, by 1:30 p.m., EDST Settlement date (final payment due from institutions) a) cash or Federal funds................................................................................. Tuesday, August 31, 1982 b) readily collectible check............................................................................. Friday, August 27, 1982 Delivery date for coupon securities................................................................. Thursday, September 16, 1982 August 19, 1982 CHANGE IN PROCEDURE FOR FOREIGN TENDERS IN NOTE AND BOND AUCTIONS The following statement was issued yesterday by the Treasury Department: The Department of the Treasury announced at its July 28 refunding press conference a change in the procedure for determining the amount of a Treasury note or bond issue when foreign and international monetary authorities submit bids for the issue through Federal Reserve Banks acting as their agents. Beginning with the auction of 2-year notes to be issued August 31, 1982, being separately announced today, the entire amount of tenders accepted from foreign official accounts will be in addition to the amount announced for public sale. In today’s note offering, for example, foreign accounts hold $700 million of the maturing $U,557 million of notes held by the public. If the foreign accounts tender for all or part of their holdings in the auction, or if they are awarded additional amounts, the entire amount of accepted tenders would be added to the announced size of the issue. Thus the amount of tenders accepted for foreign accounts would not reduce the $6,500 million offered to other bidders. This change is designed to reduce market uncertainty regarding the size of note and bond auctions offered to domestic bidders. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [Enc. Cir. No. 9344]
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