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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent o f the U n ited States Circular No. 9584 November 18, 1983 TREASURY TO AUCTION $8,000 MILLION OF 2-YEAR NOTES To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department: The Department of the Treasury will auction $8,000 million of 2-year notes to refund $4,797 million of 2-year notes maturing November 30, 1983, and to raise $3,200 million new cash. The $4,797 million of maturing 2-year 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 Treasury may alter the size or timing o f this auction unless it has assurance o f Congressional action on legislation to raise the statutory debt limit before the scheduled auction date o f November 22, 1983. The $8,000 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 price of accepted competitive tenders. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $696 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 o f the offering. Copies o f the official offering circular will be furnished upon request directed to our Government Bond Division (Tel. N o. 212-791-6619). Enclosed is a copy o f a standard form for your use in submitting tenders for this offering (or for any subsequent offering o f 2-year notes). This Bank will receive tenders prior to 1:30 p.m ., Eastern Standard time, Tuesday, November 22, 1983, at the Securities Department o f 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 investors who wish to submit noncom petitive 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 November 21. 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 in the form o f 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 o f New York; checks endorsed to this Bank will not be accepted. Payment may also be made in cash or in Treasury securities maturing on or before the issue date o f the securities being purchased. Recorded messages provide information about Treasury offerings and about auction results: at the Head O ffice — Tel. N o. 212-791-7773 (offerings) and Tel. N o. 212-791-5823 (results); at the Buffalo Branch — Tel. N o. 716-849-5046. Additional inquiries regarding this offering may be made by calling, at the Head O ffice, Tel. N o. 212-791-6619, or, at the Buffalo Branch, Tel. N o. 716-849-5016. ANTHONY M. SOLOMON, President. (Over) HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF 2-YEAR NOTES TO BE ISSUED NOVEMBER 30, 1983 A m ou n t O ffered: To the p u b lic..................................................................................................... $8,000 million D escription o f Security: Term and type of security................................................................................. 2-year notes Series and CUSIP designation......................................................................... Series AB-1985 (CUSIP No. 912827 QE5) Maturity date..................................................................................................... November 30, 1985 Call d ate............................................................................................................. No provision Interest 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 a te s..................................................................................... May 31 and November 30 Minimum denomination available.................................................................. $5,000 Term s o f Sale: Method of sale................................................................................................... Yield auction Competitive tenders ......................................................................................... Must be expressed as an annual yield, with two decimals, e.g., 7.10% Noncompetitive tenders................................................................................... Accepted in full at the average price up to $1,000,000 Accrued interest payable by investor.............................................................. None Payment by non-institutional investors........................................................ Full paym ent to be subm itted w ith tender Deposit guarantee by designated institutions................................................ Acceptable Key D ates: Deadline for receipt of tenders......................................................................... Tuesday, November 22, 1983, prior to 1:30 p.m., EST Settlement date (final payment due from institutions) a) cash or Federal funds............................................................................... Wednesday, November 30, 1983 b) readily collectible check........................................................................... Monday, November 28, 1983