FEDERAL RESERVE BANKOF NEW YORK

Fiscal A gent o f the U nited States Jfrc/rf/v'oM ay 19, 1980

RESULTS OF TREASURY’S MAY QUARTERLY FINANCING

To A ll Banking Institutions, and Others Concerned, in the Second Federal Reserve District:

The following statement was issued by the Treasury Department:T hrough the sale o f the three issues offered in the M ay financing, the Treasury raised approxim ately $3.6 billion

o f new m oney and refunded $9.6 billion o f securities m aturing M ay 15, 1980. The following table sum m arizes the results:

New Issues

MaturingSecurities

Held

Net New Money Raised

9 lA % Notes

(Series K-1983)

10V* % Notes

(Series B-1989)

10%Bonds

(Bonds o f 2005-2010)

Non-marketable

SpecialIssues Total

Public $3.5 $2.0 $2.0 — $ 7.5 $4.0* $3.5

G overnm ent A ccounts and Federal Reserve Banks 3.0 1.3 1.0 $0.3 5.6 5.6 —

Foreign A ccounts for Cash 0.1 0.1 — — 0.2 — 0.2

TO TA L $6.6 $3.4 $3.0 $0.3 $13.2 $9.6 $3.6

Details may not add to total due to rounding.'Comprised of $1.7 billion of maturing notes and $2.3 billion of maturing cash management bills.

In addition, the Treasury has released the following detailed results for each offering:

RESULTS OF AUCTION OF 3 Vi-YEAR TREASURY NOTES(Notes o f Series K-1983)

The D epartm ent o f the T reasury has accepted $3,506 m illion o f $10,212 m illion o f tenders received from the public for the 3 !4-year notes, Series K-1983, auctioned today [May 6]. The range o f accepted com petitive bids was as follows:

Lowest y i e ld ...................................... 9.28%H ighest y ie ld ...................................... 9.35%Average yield...................................... 9.32%

The interest rate on the notes will be 9 ^ % . A t the 914% rate, the above yields result in the following prices:

Low-yield p r ic e ..................................99.816High-yield p r i c e ................................ 99.623Average-yield p rice ........................... 99.706

The $3,506 million o f accepted tenders includes $1,057 m illion o f noncom petitive tenders and $2,411 m illion o f com petitive tenders from private investors, including 5% o f the am ount o f notes bid for at the high yield. It also includes $38 million o f tenders at the average price from Federal Reserve Banks as agents for foreign and in ternational m onetary authorities in exchange for m aturing securities.

In addition to the $3,506 m illion o f tenders accepted in the auction process, $3,000 m illion o f tenders were accepted at the average price from G overnm ent accounts and Federal Reserve Banks for their ow n account in exchange for m aturing securities, and $102 m illion o f tenders were accepted at the average price from Federal Reserve Banks as agents for foreign and in ternational m onetary authorities for new cash.

(Over)

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RESULTS OF AUCTIO N OF 103/4% 9%2-YEAR TREASURY NOTES(Notes o f Series B-1989)

The D epartm ent o f the T reasury has accepted $2,000 m illion o f $3,992 m illion o f tenders received from the public fo r the 10% % 9 ‘/ 2 -year notes, Series B-1989, auctioned today [M ay 7]. The range o f accepted com petitive bids was as follows:

Price Approximate Yield

H ig h ............................. 106.10‘ 9.75 %L o w ............................. 104.84 9.95%A v e ra g e ....................... 105.27 9.88%

‘Excepting two tenders totaling $4,000,000.

The $2,000 m illion o f accepted tenders includes $201 m illion o f noncom petitive tenders and $1,799 m illion o f com petitive tenders from private investors, including 28% o f the am ount o f notes bid for at the low price.

In addition to the $2,000 m illion o f tenders accepted in the auction process, $1,300 million o f tenders were accepted a t the average price from G overnm ent accounts and Federal Reserve Banks for their own account in exchange for m aturing securities, and $55 m illion o f tenders were accepted at the average price from Federal Reserve Banks as agents for foreign and in ternational m onetary authorities for new cash.

RESULTS OF AUCTION OF 30-YEAR TREASURY BONDS(Bonds o f 2005-2010)

The D epartm ent o f the T reasury has accepted $2,000 million o f $3,648 m illion o f tenders received from the public for the 30-year bonds auctioned today [May 5]. The range o f accepted com petitive bids was as follows:

Lowest y i e ld .................................... 10.08%H ighest y ie ld .................................... 10.18%Average yield.................................... 10.12%

The interest ra te on the bonds will be 10% . A t the 10% rate, the above yields result in the following prices:

Low-yield p r ic e .................................. 99.248H igh-yield p r i c e ................................ 98.322Average-yield p rice ........................... 98.876

The $2,000 m illion o f accepted tenders includes $182 million o f noncom petitive tenders and $1,818 m illion o f com petitive tenders from private investors, including 55% o f the am ount o f bonds bid for a t the high yield.

In addition to the $2,000 m illion o f tenders accepted in the auction process, $976 million o f tenders were accepted at the average price from G overnm ent accounts and Federal Reserve Banks for their own account in exchange for securities m aturing M ay 15, 1980.

Anthony M. Solomon, President.

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