EMBARGOED UNTIL 2:30 P.M. CONTACT: Office of Financing
February 16, 2000 202/691-3550
TREASURY TO AUCTION $12,000 MILLION OF 2-YEAR NOTES
The Treasury will auction $12,000 million of 2-year notes to refund
$27,053 million of publicly held securities maturing February 29, 2000,
and to pay down about $15,053 million.
In addition to the public holdings, Federal Reserve Banks hold $3,219
million of the maturing securities for their own accounts, which may be
refunded by issuing an additional amount of the new security.
The maturing securities held by the public include $2,381 million held
by Federal Reserve Banks as agents for foreign and international monetary
authorities. Amounts bid for these accounts by Federal Reserve Banks will
be added to the offering.
TreasuryDirect customers requested that we reinvest their maturing
holdings of approximately $636 million into the 2-year note.
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 notes being offered today are eligible for the STRIPS program.
This offering of Treasury securities is governed by the terms and con-
ditions 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 the new security are given in the attached offering
highlights.
If the auction of 2-year notes to be held Wednesday, February 23, 2000,
results in a yield in a range of 6.250 percent through and including 6.374
percent, the 2-year notes will be considered an additional issue of the
outstanding 6-1/4% 5-year notes of Series D-2002 (CUSIP No. 9128272L5)
originally issued February 28, 1997. The additional issue of the notes would
have the same CUSIP number as the outstanding notes, which are currently
outstanding in the amount of $13,800 million.
If the auction results in the issuance of an additional amount of the
Series D-2002 notes rather than a new 2-year note, it will be noted on the
Treasury auction results press release. In the event of a reopening, all
amounts outstanding for CUSIP No. 9128272L5, including the 5-year notes
issued February 28, 1997, would be eligible for the STRIPS program.
Attachment
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HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF
2-YEAR NOTES TO BE ISSUED FEBRUARY 29, 2000
February 16, 2000
Offering Amount........................... $12,000 million
Description of Offering:
Term and type of security................. 2-year notes
Series.................................... S-2002
CUSIP number.............................. 912827 6A 5
Auction date.............................. February 23, 2000
Issue date................................ February 29, 2000
Dated date................................ February 29, 2000
Maturity date............................. February 28, 2002
Interest rate............................. Determined based on the highest
accepted competitive bid
Yield..................................... Determined at auction
Interest payment dates.................... August 31 and February 28
Minimum bid amount and multiples.......... $1,000
Accrued interest payable by investor...... None
Premium or discount....................... Determined at auction
STRIPS Information:
Minimum amount required................... Determined at auction
Corpus CUSIP number ...................... 912820 EN 3
Due date(s) and CUSIP number(s)
for additional TINT(s).................. Not applicable
Submission of Bids:
Noncompetitive bids: Accepted in full up to $5,000,000 at the highest
accepted yield.
Competitive bids:
(1) Must be expressed as a yield with three decimals, e.g., 7.123%.
(2) Net long position for each bidder must be reported when the sum
of the total bid amount, at all yields, and the net long position
is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior to
the closing time for receipt of competitive tenders.
Maximum Recognized Bid at a Single Yield...... 35% of public offering
Maximum Award................................. 35% of public offering
Receipt of Tenders:
Noncompetitive tenders: Prior to 12:00 noon Eastern Standard time
on auction day.
Competitive tenders: Prior to 1:00 p.m. Eastern Standard time
on auction day.
Payment Terms: By charge to a funds account at a Federal Reserve Bank
on issue date, or payment of full par amount with tender. TreasuryDirect
customers can use the Pay Direct feature which authorizes a charge to
their account of record at their financial institution on issue date.