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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular N o. 9903 August 1, 1985 TR EA SU RY A N N O U N C ES A U G U ST Q U A R T ER LY F IN A N C IN G To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following is quoted from a statement issued yesterday by the Treasury Department: The Treasury will raise about $9,400 million of new cash and refund $12,341 million of securities maturing August 15, 1985, by issuing $8,500 million of 3-year notes, $6,750 million of 10-year notes, and $6,500 million of 30-year bonds. The $12,341 million of maturing securities are those held by the public, including $1,409 million held, as of today, by Federal Reserve Banks as agents for foreign and international monetary authorities. The 10-year note and 30-year bond being offered today will be eligible for exchange in the STRIPS program and, accordingly, may be divided into their separate Interest and Principal Components and maintained on the book-entry records of the Federal Reserve Banks and Branches. Once a security is in the STRIPS form, the com ponents may be maintained and transferred in multiples of $1,000. Financial institutions should consult their local Federal Reserve Bank or Branch for procedures for requesting securities in STRIPS form. The three issues totaling $21,750 million are 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 prices of accepted competitive tenders. In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own accounts, hold $3,275 million of the maturing securities that may be refunded by issuing additional amounts of the new securities at the average prices of accepted competitive tenders. Printed on the reverse side is a table summarizing the highlights of the offerings. The 10-year note and the 30-year bond will be eligible for conversion to STRIPS (Separate Trading of Registered Interest and Principal of Securities). Information about this feature is set forth in the Treasury Department’s official offering circulars, copies of which will be furnished upon request directed to the Government Bond Department (Tel. No. 212-791-6619). Questions regarding procedures for requesting securities in STRIPS form should be directed to H. John Costalos, Manager, Securities Transfer Depart ment (Tel. No. 212-791-5986) or Daniel Bolwell, Chief, Securities Transfer Division (Tel. No. 212-791-5379). In addition, enclosed are copies of the forms to be used in submitting tenders. This Bank will receive tenders at the Securities Department of its Head Office and at its Buffalo Branch on the dates and times specified on the reverse side of this circular as the deadlines for receipt of tenders. All competitive tenders, whether transmitted by mail or by other means, must reach this Bank or its Branch by that time on the specified dates. 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 for each offering 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 the date preceding the date specified for receipt of tenders. 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 made in cash, by check, in Treasury securities maturing on or before the issue date of the securities being purchased, by a charge to an institution’s reserve account at this Bank, or, in the case of Treasury Tax and Loan Note Option Depositaries, by credit to a Treasury Tax and Loan Note Account. Payment by check must be in the form of an official bank check, a Federal funds check (a check drawn by a depository institution on its Federal Reserve account), or a personal check, which need not be certified. All checks must be drawn payable to the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 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. 716-849-5158 (offerings) and Tel. No. 716-849-5046 (results). Additional inquiries re garding 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. E. Gerald Corrigan, President. (Over) HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC AUGUST 1985 FINANCING TO BE ISSUED AUGUST 15, 1985 3-Year Notes 10-Year Notes 30-Year Bonds Amount Offered: To the p u b lic ....................................... . $8,500 million $6,750 million $6,500 million Description of Security: Term and type o f s e c u rity ............... . 3-year notes 10-year notes 30-year bonds Series C-1995 (CUSIP No. 912827 SP8) Bonds of 2015 (CUSIP No. 912810 DS4) Listed in A ttachm ent A of offering circular Listed in A ttachm ent A o f offering circular M aturity date ..................................... . August 15, 1988 August 15, 1995 August 15, 2015 Interest r a te ......................................... . To be determined, based on the average of accepted bids To be determ ined, based on the average o f accepted bids To be determ ined, based on the average of accepted bids Investment y ie ld ................................ . To be determined at auction To be determined at auction To be determ ined at auction Prem ium or d is c o u n t........................ . To be determined after auction To be determined after auction To be determined after auction Interest paym ent d a te s ...................... . February 15 and Ausust 15 February 15 and August 15 February 15 and August 15 M inimum denom ination available . .$5,000 $1,000 $1,000 A m ount Required for STRIPS . . . . . Not applicable To be determ ined after auction To be determined after auction Yield auction Yield auction Series and CU SIP designation......... . Series T-1988 (CUSIP No. 912827 SN3) C U S IP N os. for STRIPS C o m p o n e n ts................................ . N ot applicable Terms of Sale: M ethod o f sale ................................... . Yield auction M ust be expressed as an annual Must be expressed as an annual Com petitive te n d e rs .......................... . M ust be expressed as an annual yield, with two decimals, e.g., 7.10% yield, with two decimals, e.g., 7.10% yield with two decimals, e .g .,' Noncom petitive te n d e rs................... . Accepted in full at the average price up to $ 1,000,000 Accepted in full at the average price up to $1,000,000 Accepted in full at the average price up to $1,000,000 Accrued interest payable by investor . . None None None Paym ent through Treasury Tax and Loan (TT&L) Note A cco u n ts... . Acceptable for TT&L Note O ption Depositaries Acceptable for TT&L Note O ption D epositaries Acceptable for TT&L Note O ption Depositaries Paym ent by non-institutional investors......................................... . Full paym ent to be subm itted with tender Full paym ent to be subm itted with tender Full payment to be subm itted with tender Deposit guarantee by designated institutions..................................... . Acceptable Acceptable Acceptable Wednesday, August 7,1985, prior to 1:00 p.m ., EDST Thursday, August 8,1985, prior to 1:00 p.m ., EDST Thursday, August 15, 1985 Thursday, August 15, 1985 Tuesday, August 13, 1985 Tuesday, August 13, 1985 Key Dates: Receipt of te n d e rs.............................. . Tuesday, August 6,1985, prior to 1:00 p.m ., EDST Settlement a) cash or Federal f u n d s ............. . Thursday, August 15, 1985 b) readily collectible check Tuesday, August 13, 1985
@FedFRASER