EMBARGOED UNTIL 2:30 P.M. CONTACT: Office of Financing
July 22, 1998 202/219-3350
TREASURY TO AUCTION $15,000 MILLION OF 2-YEAR NOTES
The Treasury will auction $15,000 million of 2-year notes to refund
$31,410 million of publicly held securities maturing July 31, 1998, and to
pay down about $16,400 million.
In addition to the public holdings, Federal Reserve Banks hold $1,842
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 $4,464 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.
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 2-year notes being offered today are eligible for the STRIPS
program.
Tenders will be received at Federal Reserve Banks and Branches and at
the Bureau of the Public Debt, Washington, D. C. This offering of Treasury
securities is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, as amended) for the sale and issue by
the Treasury to the public of marketable Treasury bills, notes, and bonds.
Details about the new security are given in the attached offering
highlights.
As announced on May 6, 1998, the Treasury Department has discontinued
issuing 5-year notes on a monthly basis. The last monthly 5-year note was
issued on June 30, 1998. Beginning in August 1998, the 5-year note will
replace the 3-year note in the quarterly refundings.
oOo
Attachment
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HIGHLIGHTS OF TREASURY OFFERING TO THE PUBLIC OF
2-YEAR NOTES TO BE ISSUED JULY 31, 1998
July 22, 1998
Offering Amount.......................... $15,000 million
Description of Offering:
Term and type of security................ 2-year notes
Series................................... AF-2000
CUSIP number............................. 912827 4M 1
Auction date............................. July 29, 1998
Issue date............................... July 31, 1998
Dated date............................... July 31, 1998
Maturity date............................ July 31, 2000
Interest rate............................ Determined based on the highest
accepted competitive bid
Yield.................................... Determined at auction
Interest payment dates................... January 31 and July 31
Minimum bid amount....................... $5,000
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 DD 6
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 Daylight Saving time
on auction day.
Competitive tenders: Prior to 1:00 p.m. Eastern Daylight Saving time on
auction day.
Payment Terms: Full payment with tender or by charge to a funds account
at a Federal Reserve Bank on issue date.