AMENDED ANNOUNCEMENT
EMBARGOED UNTIL 11:00 A.M. CONTACT: Office of Financing
April 10, 2006 202/504-3550
TREASURY OFFERS 9-YEAR 9-MONTH 2% TREASURY INFLATION-PROTECTED SECURITIES (TIPS)
The Treasury will auction $8,000 million of 9-year 9-month 2% Treasury
inflation-protected securities to raise new cash.
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 the 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 $16 million
into the 9-year 9-month 2% Treasury inflation-protected security.
The auction will be conducted in the single-price auction format. All
competitive and noncompetitive awards will be at the highest yield of accepted
competitive tenders. The allocation percentage applied to bids awarded at the
highest yield will be rounded up to the next hundredth of a whole percentage
point, e.g., 17.13%.
The securities being offered today are eligible for the STRIPS program.
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).
For original issue discount (OID), IRS regulations permit reopenings of
Treasury inflation-protected securities without regard to OID rules, provided
that the reopenings occur not more than one year after the original securities
were first issued to the public. Therefore, the OID limit does not apply to
this auction.
Details about the security are given in the attached offering highlights.
oOo
Attachment
HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF
9-YEAR 9-MONTH 2% TREASURY INFLATION-PROTECTED SECURITIES TO BE ISSUED APRIL 17, 2006
April 10, 2006
Offering Amount............................................ $8,000 million
Maximum Award (35% of Offering Amount)..................... $2,800 million
Maximum Recognized Bid at a Single Yield................... $2,800 million
NLP Reporting Threshold.................................... $2,800 million
NLP Exclusion Amount....................................... $3,200 million
Description of Offering:
Term and type of security................................. 9-year 9-month Treasury inflation-
protected securities (reopening)
Series.................................................... A-2016
CUSIP number.............................................. 912828 ET 3
Auction date.............................................. April 12, 2006
Issue date................................................ April 17, 2006
Dated date................................................ January 15, 2006
Maturity date............................................. January 15, 2016
Interest rate............................................. 2%
Amounts outstanding....................................... $9,000 million
Adjusted amounts currently outstanding.................... $9,000 million
Real yield................................................ Determined at auction
Interest payment dates.................................... July 15 and January 15
Minimum bid amount and multiples.......................... $1,000
Accrued interest.......................................... $5.08287 per $1,000 (from January 15 to
April 17, 2006)
Adjusted accrued interest payable by investor............. $5.08378 per $1,000
Premium or discount....................................... Determined at auction
STRIPS Information:
Minimum amount required................................... $1,000
Corpus CUSIP number....................................... 912820 MQ 7
TIIN conversion factor per $1,000......................... 5.038356504
Submission of Bids:
Noncompetitive bids:
Accepted in full up to $5 million at the highest accepted yield.
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 real yield with three decimals, e.g., 3.123%.
(2) Net long position (NLP) for each bidder must be reported when the sum of the total bid amount,
at all yields, 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.
Indexing Information: CPI Base Reference Period.......... 1982-1984
Ref CPI 01/15/2006................. 198.47742
Ref CPI 04/17/2006................. 198.51333
Index Ratio 04/17/2006............. 1.00018