Full text of Federal Reserve Bank of New York Circulars : Results of Auction of 2-Year Notes and 4-Year Notes

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FEDERAL RESERVE BANK
OF NEW YORK
F is c a l A g e n t of the U n ite d S t a t e s

&T £ 7 P
December 21, 1979

R E SU L T S OF AUCTION OF 2-YEAR NOTES AND 4-YEAR N O TES

To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statements have been issued by the Treasury Department:
Results of Auction of 2-Year Treasury Notes
(Notes of Series AB-1981)

The Department of the Treasury has accepted $3,509 million of $8,204 million of tenders received
from the public for the 2-year notes, Series AB-1981, auctioned today [D ecem ber 19], The range of
accepted competitive bids was as follows:
Lowest yield ......................11.42%
Highest yield......................11.44%
Average yield....................11.43%
The interest rate on the notes will be 11-3/8%. At the 11-3/8% rate, the above yields result in the
following prices:
Low-yield price................................... 99.922
High-yield price................................. 99.887
Average-yield price............................ 99.904
The $3,509 million of accepted tenders includes $864 million of noncompetitive tenders and $1,864
million of competitive tenders from private investors, including 68% of the amount of notes bid for at the
high yield. It also includes $781 million of tenders at the average price from Federal Reserve Banks as
agents for foreign and international monetary authorities in exchange for maturing securities.
In addition to the $3,509 million of tenders accepted in the auction process, $571 million of tenders
were accepted at the average price from Government accounts and Federal Reserve Banks for their own
account in exchange for securities maturing December 31, 1979, and $134 million of tenders were
accepted at the average price from Federal Reserve Banks as agents for foreign and international
monetary authorities for new cash.




(Over)

Results of Auction of 4-Year Treasury Notes
(Notes of Series H-1983)

The Department of the Treasury has accepted $2,501 million of $4,118 million of tenders received
from the public for the 4-year notes, Series H-1983, auctioned today [D ecem ber 2 0]. The range of accepted
competitive bids was as follows:
Lowest yield ..................... 10.39%
Highest yield......................10.60%
Average yield....................10.52%
The interest rate on the notes will be 10-1/2%. At the 10-1/2% rate, the above yields result in the
following prices:
Low-yield price................................. 100.353
High-yield price................................. 99.681
Average-yield price............................ 99.936
The $2,501 million of accepted tenders includes $441 million of noncompetitive tenders and $1,980
million of competitive tenders from private investors, including 21% of the amount of notes bid for at the
high yield. It also includes $80 million of tenders at the average price from Federal Reserve Banks as
agents for foreign and international monetary authorities in exchange for maturing securities.
In addition to the $2,501 million of tenders accepted in the auction process, $156 million of tenders
were accepted at the average price from Government accounts and Federal Reserve Banks for their own
account in exchange for securities maturing December 31, 1979.




T homas M. T im len ,
First Vice President.