Full text of Federal Reserve Bank of New York Circulars : Results of Auction of 2-Year Notes and 5 1/2-Year Notes

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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States

ATC4& No A'r'v

November 28, 1979

RESULTS OF AUCTION OF 2-YEAR NOTES AND 5-1/2-YEAR NOTES

To All Banking Institutions, and Others Concerned,
in the Second Federal R esen t District:

The following statements have been issued by the Treasury Department:

Results of Auction of 2-Year Treasury Notes
(Notes of Series Z-1981)
The Department of the Treasury has accepted $4,301 million of $7,556 million of tenders received
from the public for the 2-year notes, Series Z-1981, auctioned today [November 21]. The range of accepted
competitive bids was as follows:
Lowest yield ......................12.18%1
Highest y ield ......................12.26%
Average y ie ld ....................12.24%
E x c e p tin g five tenders totaling $35,000.

The interest rate on the notes will be 12-1/8%. At the 12-1/8% rate, the above yields result in the
following prices:
Low-yield p r ic e ..................................... 99.905
High-yield p r ic e ................................... 99.767
Average-yield p r ic e .............................. 99.801
The $4,301 million of accepted tenders includes $1,042 million of noncompetitive tenders and $2,634
million of competitive tenders from private investors, including 70% of the amount of notes bid for at the
high yield. It also includes $625 million of tenders at the average price from Federal Reserve Banks as
agents for foreign and international monetary authorities in exchange for m aturing securities.
In addition to the $4,301 million of tenders accepted in the auction process, $502 million of tenders
were accepted at the average price from Government accounts and Federal Reserve Banks for their own
account in exchange for securities m aturing November 30, 1979.




(Over)

Results of Auction of 5-1/2-Year Treasury Notes
(Notes of Series C-1985)
The Department of the Treasury has accepted $2,501 million of $3,512 million of tenders received
from the public for the 5-1/2-year notes, Series C-1985, auctioned today [November 27]. The range of
accepted competitive bids was as follows:
Lowest yield ....................... 10.28%
Highest yield ....................... 10.49%
Average y ie ld ..................... 10.40%
The interest rate on the notes will be 10-3/8%. At the 10-3/8% rate, the above yields result in the
following prices:
Low-yield p r ic e ................................... 100.389
High-yield p r ic e .................................... 99.532
Average-yield p r ic e .............................. 99.898
The $2,501 million of accepted tenders includes $620 million of noncompetitive tenders and $1,881
million of competitive tenders from private investors, including 17% of the amount of notes bid for at the
high yield.
In addition to the $2,501 million of tenders accepted in the auction process, $5 million of tenders
were accepted at the average price from Federal Reserve Banks as agents for foreign and international
monetary authorities for new cash.




T homas M. T im len ,
F irs t

V ic e P r e s i d e n t