EMBARGOED UNTIL 11:00 A.M. CONTACT: Office of Financing
August 17, 2006 202/504-3550
TREASURY OFFERS 13-WEEK AND 26-WEEK BILLS
The Treasury will auction 13-week and 26-week Treasury bills totaling $33,000
million to refund an estimated $33,003 million of publicly held 13-week and 26-week
Treasury bills maturing August 24, 2006 and to pay down approximately $3 million.
Also maturing is an estimated $23,000 million of publicly held 4-week Treasury bills,
the disposition of which will be announced August 21, 2006.
The Federal Reserve System holds $18,269 million of the Treasury bills maturing
on August 24, 2006 in the System Open Market Account (SOMA). This amount may be
refunded at the highest discount rate of accepted competitive tenders either in these
auctions or the 4-week Treasury bill auction to be held August 22, 2006. Amounts
awarded to SOMA will be in addition to the offering amount.
Up to $1,000 million in noncompetitive bids from Foreign and International
Monetary Authority (FIMA) accounts bidding through the Federal Reserve Bank of New
York will be included within the offering amount of each auction. These
noncompetitive bids will have a limit of $100 million per account and will be accepted
in the order of smallest to largest, up to the aggregate award limit of $1,000
million.
Treasury Direct customers have scheduled purchases of approximately $1,287
million into the 13-week bill and $1,075 million into the 26-week bill.
The allocation percentage applied to bids awarded at the highest discount rate
will be rounded up to the next hundredth of a whole percentage point, e.g., 17.13%.
This offering of Treasury securities is governed by the terms and conditions set
forth in the Uniform Offering Circular for the Sale and Issue of Marketable Book-Entry
Treasury Bills, Notes, and Bonds (31 CFR Part 356, as amended).
Details about each of the new securities are given in the attached offering
highlights.
oOo
Attachment
HIGHLIGHTS OF TREASURY OFFERINGS OF BILLS
TO BE ISSUED AUGUST 24, 2006
August 17, 2006
Offering Amount ............................................ $17,000 million $16,000 million
Maximum Award (35% of Offering Amount) ..................... $ 5,950 million $ 5,600 million
Maximum Recognized Bid at a Single Rate .................... $ 5,950 million $ 5,600 million
NLP Reporting Threshold .................................... $ 5,950 million $ 5,600 million
NLP Exclusion Amount ....................................... $ 4,700 million None
Description of Offering:
Term and type of security ................................. 92-day bill 182-day bill
CUSIP number .............................................. 912795 YF 2 912795 YU 9
Auction date .............................................. August 21, 2006 August 21, 2006
Issue date ................................................ August 24, 2006 August 24, 2006
Maturity date ............................................. November 24, 2006 February 22, 2007
Original issue date ....................................... May 25, 2006 August 24, 2006
Currently outstanding ..................................... $20,036 million ---
Minimum bid amount and multiples .......................... $1,000 $1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids:
Accepted in full up to $5 million at the highest discount rate of accepted competitive bids.
Foreign and International Monetary Authority (FIMA) bids:
Noncompetitive bids submitted through the Federal Reserve Banks as agents for FIMA accounts. Accepted in order of
size from smallest to largest with no more than $100 million awarded per account. The total noncompetitive amount
awarded to Federal Reserve Banks as agents for FIMA accounts will not exceed $1,000 million. A single bid that
would cause the limit to be exceeded will be partially accepted in the amount that brings the aggregate award
total to the $1,000 million limit. However, if there are two or more bids of equal amounts that would cause
the limit to be exceeded, each will be prorated to avoid exceeding the limit.
Competitive bids:
(1) Must be expressed as a discount rate with three decimals in increments of .005%, e.g., 7.100%, 7.105%.
(2) Net long position (NLP) for each bidder must be reported when the sum of the total bid amount, at all
discount rates, and the net long position equals or exceeds the NLP reporting threshold stated above.
(3) Net long position must be determined as of one-half hour prior to the closing time for receipt of
competitive tenders.
(4) Competitive bids from Treasury Direct customers are not allowed.
Receipt of Tenders:
Noncompetitive tenders:
Prior to 12:00 noon eastern daylight saving time on auction day
Competitive tenders:
Prior to 1:00 p.m. eastern daylight saving time on auction day