Full text of Federal Reserve Bank of New York Circulars : Results of Treasury's February Quarterly Financing

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FED ER A L RESERVE BANK
O F N EW YORK
Fiscal Agent of the United States
February 11, 1980

RESULTS OF TREASURY’S FEBRUARY QUARTERLY FINANCING
To A ll Banking Institutions, and Others: Concerned,
in the Second Federal Reserve District:

The following statement was issued by the Treasury Department:
Through the sale of the three issues offered in the February financing, the Treasury raised approxim ately $2.6
billion o f new money and refunded $7.0 billion o f securities m aturing February 15, 1980. The following table
summarizes the results:

New Issues

12%
11-7/8%
11-3/4%
3 / 2 -Year Notes 7'A-Year Notes
30- Year Bonds
(Series J-1983) (Series C-1987) (Bonds o f 2005-2010)

Public
Governm ent accounts and
Federal Reserve Banks
T o tal 1

Nonmarketable
Special
Issues

Total

Maturing
Securities
Held

Net New
Money
Raised

$2 .6

$3.3

$2.0

$2 .0

—

$7.3

$4.7

1.0

0.4

0.6

$0 .2

2.3

2.3

$4.2

$2.5

$2 .6

$0 .2

$9.6

$7.0

—

$2 .6

'Details may not add to total due to rounding.

In a d d itio n , th e T re a su ry has released th e follow ing d etailed resu lts fo r each o fferin g :

RESULTS OF AUCTION OF 31/2-YEAR TREASURY NOTES
(Notes o f Series J - 1983)
The D epartm ent o f the Treasury has accepted $3,251 million o f $7,518 million of tenders received from the
public for the 3 !/2 -year notes, Series J-1983, auctioned today [February 5]. The range o f accepted competitive bids was
as follows:
Lowest y i e l d ................................... 11.87%
Highest y ie ld ................................... 12.00%
Average yield................................... 11.98%

The interest rate on the notes will be 11%%. At the 11%% rate, the above yields result in the following prices:
Low-yield p ric e .............................. 100.014
High-yield p r i c e ............................... 99.651
Average-yield price.......................... 99.707
The $3,251 million o f accepted tenders includes $675 million o f noncom petitive tenders and $2,281 million of
com petitive tenders from private investors, including 8 8 % o f the am ount o f notes bid for at the high yield. It also
includes $295 million o f tenders at the average price from Federal Reserve Banks as agents for foreign and
international m onetary authorities in exchange for m aturing securities.
(Over)




In addition to the $3,251 million of tenders accepted in the auction process, $978 million o f tenders were
accepted at the average price from Governm ent accounts and Federal Reserve Banks for their own account in
exchange for securities m aturing February 15, 1980.

RESULTS OF AUCTION OF 7 Vi-YEAR TREASURY NOTES
(Notes o f Series C-1987)
The D epartm ent o f the Treasury has accepted $2,001 million o f $4,690 million of tenders received from the
public for the 7!4-year notes, Series C-1987, auctioned today [February 6]. The range of accepted competitive bids
was as follows:
Lowest y i e l d .................................. 11.9897b1
Highest y ie ld .................................. 12.05%
Average yield.................................. 12.02%
'Excepting two tenders totaling $4,000.

The interest rate on the notes will be 12%. At the 12% rate, the above yields result in the following prices:
Low-yield p ric e ..............................
High-yield p r i c e ............................
Average-yield price........................

99.932
99.599
99.742

The $2,001 million o f accepted tenders includes $324 million of noncompetitive tenders and $1,677 million of
competitive tenders from private investors, including 6 % o f the am ount o f notes bid for at the high yield.
In addition to the $2,001 million of tenders accepted in the auction process, $450 million of tenders were
accepted at the average price from Governm ent accounts and Federal Reserve Banks for their own account in
exchange for securities m aturing February 15, 1980.

RESULTS OF AUCTION OF 30-YEAR TREASURY BONDS
(Bonds of 2005-2010)
The Departm ent of the Treasury has accepted $2,001 million o f $4,635 million o f tenders received from the
public for the 30-year bonds auctioned today [February 7]. The range of accepted competitive bids was as follows:
Lowest y i e l d .................................. 11.78%
Highest y ie ld .................................. 11.87%
Average yield.................................. 11.84%

The interest rate on the bonds will be 11%%. At the 11%% rate, the above yields result in the following prices:
Low-yield p ric e ................................ 99.754
High-yield p r i c e .............................. 99.021
Average-yield price.......................... 99.264

The $2,001 million o f accepted tenders includes $204 million of noncompetitive tenders and $1,797 million of
com petitive tenders from private investors, including 62% of the am ount o f bonds bid for at the high yield.
In addition to the $2,001 million of tenders accepted in the auction process, $644 million of tenders were
accepted at the average price from Governm ent accounts and Federal Reserve Banks for their own account in
exchange for securities m aturing February 15, 1980.




T h o m a s M. T im l e n ,

First Vice President.