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

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

ATCiftNo-%>75

November 5, 1979

RESULTS OF TREASU RY’ S NOVEMBER QUARTERLY FINANCING
To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

T he follow ing statem ent w as issued by the T reasu ry D epartm ent:
Through the sale o f the three issues offered in the November financing, the Treasury raised approximately $1.4
billion o f new money and refunded $7.2 billion o f securities maturing November 15, 1979. The following table
summarizes the results:

New Issues

Maturing
Securities
Held

Net New
Money
Raised

$1.4

11-5/8%
3 'A- Year Notes
(Series G-1983)

10V4 %
10-Year Notes
(Series B-1989)

10-3/8%
30- Year Bonds
(Bonds o f 2004-2009)

Nonmarketable
Special
Issues

Total

$2.8

$2.0

$2.0

—

$6.8

$5.4

0.8

0.4

0.3

$0.3

1.8

1.8

$3.6

$2.4

$2.3

$0.3

$ 8.6

$7.2

Public
Government accounts and
Federal Reserve Banks
T otal 1

$1.4

'Details may not add to total due to rounding.

In add ition , the T reasu ry has released the follow ing detailed results for each offerin g:
R E SU L T S OF AUCTION OF 31/2-YEAR TR EA SU R Y NOTES
(Notes of Series G-1983)
The Department of the Treasury has accepted $2,751 million o f $6,851 million o f tenders received from the
public for the 3 '/2 -year notes, Series G-1983, auctioned today [October 30], The range of accepted competitive bids
was as follows:
Lowest y ie ld .................................. 11.62%
Highest yield .................................. 11.64%
Average y ie ld ................................ 11.64%
'Excepting two tenders totaling $20,000.

The interest rate on the notes will be 11%%. At the 11%% rate, the above yields result in the following prices:
Low-yield price.............................. 100.014
High-yield p r ic e .............................. 99.958
Average-yield price.......................... 99.958
The $2,751 million of accepted tenders includes $929 million o f noncompetitive tenders and $1,432 million of
competitive tenders from private investors, including 83% o f the amount o f notes bid for at the high yield. It also
includes $390 million of tenders at the average price from Federal Reserve Banks as agents for foreign and
international monetary authorities in exchange for maturing securities.
(Over)



In addition to the $2,751 million o f tenders accepted in the auction process, $800 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 November 15, 1979.

RESULTS OF AUCTION OF 10-YEAR TREASURY NOTES
(Notes o f Series B-1989)
The Department of the Treasury has accepted $2,001 million o f $3,418 million of tenders received from the
public for the 10-year notes, Series B-1989, auctioned today [October 31]. The range of accepted competitive bids was
as follows:
Lowest y ie ld .................................. 10.70%
Highest yield .................................. 10.79%
Average y ie ld ................................ 10.75%

The interest rate on the notes will be 1 0 3/ 4 %. At the 10%% rate, the above yields result in the following prices:
Low-yield price................................ 100.303
High-yield p r ic e ............................ 99.759
Average-yield price......................... 100.000

The $2,001 million of accepted tenders includes $329 million of noncompetitive tenders and $1,671 million o f
competititive tenders from private investors, including 35% of the amount o f notes bid for at the high yield.
In addition to the $2,001 million of tenders accepted in the auction process, $400 million o f tenders were
accepted at the average price from Government accounts and Federal Reserve Banks for their own account in
exchange for securities maturing November 15, 1979.

RESULTS OF AUCTION OF 30-YEAR TREASURY BONDS
(Bonds of 2004-2009)
The Department of the Treasury has accepted $2,001 million of $3,280 million of tenders received from the
public for the 30-year bonds auctioned today [November /]. The range of accepted competitive bids was as follows:
Lowest y ie ld .................................. 10.39%
Highest yield .................................. 10.48%
Average y ie ld ................................ 10.44%

The interest rate on the bonds will be 10%%. At the 10%% rate, the above yields result in the following prices:
Low-yield price................................ 99.863
High-yield p r ic e .............................. 99.045
Average-yield price.......................... 99.407

The $2,001 million of accepted tenders includes $133 million o f noncompetitive tenders and $1,868 million of
competitive tenders from private investors, including 44% of the amount of bonds bid for at the high yield.
In addition to the $2,001 million of tenders accepted in the auction process, $314 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 November 15, 1979.




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

First Vice President.