FED ERAL R ESERVE BANKOF N E W YORK

Fiscal Agent of the United States

R ESU LTS OF T R E A S U R Y 'S A U G U S T Q U A R T E R L Y FIN AN C IN G

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The following statement was issued by the Treasury Department:

Through the sale of the three issues offered in the August financing, the Treasury raised approximately $3.3 billion of new money and refunded $7.6 billion of securities maturing August 15, 1978. The following table summarizes the results:

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Public $2.5 $3.0 $1.5 — $7.0 $4.4 $2.6

Government accounts andFederal Reserve Banks 1.2 1.4 0.6 * 3.2 3.2 —

Foreign accounts (for cash) 0.3 0.3 — — 0.6 — 0.6

Total * $4.0 $4.8 $2.1 * $10.9 $7.6 $3.3

*$50 miHion or less.t Details may not add to total due to rounding.

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

RESULTS OF AUCTION OF 3 YEAR TREASURY NOTES(Notes of Series N-1981)

The Department of the Treasury has accepted $2,503 million of $5,384 million of tenders received from the public for the 3-year notes, Series N -1981, auctioned today [/H/gn-s? /]. The range of accepted competitive bids was as follows:

Lowest y ie ld .......................................... 8 .44% ^Highest y ie ld ........................................ 8 .47%Average y ie ld ........................................ 8 .46%

Excepting six tenders totaling $155,000.

The interest rate on the notes will be 8 -3 /8 % . At the 8 -3 /8 % rate, the above yields result in the following prices:

Low-yield p r ic e ................................... 99.831High-yield price................................... 99.753Average-yield p ric e ........................... 99.779

The $2,503 million of accepted tenders includes $1,124 million of noncompetitive tenders and $1,379 million ol competitive tenders from private investors, including 16% of the amount of notes bid for at the high yield.

(Over)

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

!n addition to the $2,503 million o f tenders accepted in the auction process. $1,200 miliion of tenders were accepted at the average price from Government accounts and Federal Reserve Banks for their own account in exchange for securities maturing August 15, 1978, and $320 million of tenders were accepted at the average price from Federal Reserve Banks as agents for foreign and international monetary authorities for new cash.

RESULTS OF AUCTION OF 7-YEAR TREASURY NOTES(Notes of Series B-1985)

The Department of the Treasury has accepted $3,000 million of the $4,078 million of tenders received from the public for the 7-year notes, Series B-1985, auctioned today [August 2]. The range of accepted competitive bids was as follows:

Lowest y ie ld ........................................; 8 .28%Highest y ie ld ........................................ 8 .41%Average y ie ld ........................................ 8 .36%

The interest rate on the not^s will be 8% % . At the 8% % rate, the above yields result in the following prices:

Low-yield p r ic e ................................... 99.843High-yield price................................... 99.166Average-yield p rice ........................... 99.426

The $3,000 million of accepted tenders includes $715 million of noncompetitive tenders and $2,286 million of competitive tenders from private investors, including 57% of the amount of notes bid for at the high yield.

In addition to the $3,000 million of tenders accepted in the auction process, $1,434 million of tenders were accepted at the average price from Government accounts and Federal Reserve Banks for their own account in exchange for securities maturing August 15, 1978, and $330 million of tenders were accepted at the average price from Federal Reserve Banks as agents for foreign and international monetary authorities for new cash.

RESULTS OF AUCTION OF 30-YEAR TREASURY BONDS(Bonds o f 2003-2008)

The Department of the Treasury has accepted $1,501 million of the $2,588 million of tenders received from the public for the 30-year bonds, auctioned today [August J). The range of accepted competitive bids was as follows:

Lowest y ie ld .......................................... 8 .37%Highest y ie ld ........................................ 8 .46%Average y ie ld ........................................ 8 .43%

The interest rate on the bonds will be 8 -3 /8 % . At the 8 -3 /8 % rate, the above yields result in the following prices:

Low-yield p r ic e ................................... 100.055High-yield price...................................... 99.079Average-yield p rice .............................. 99.402

The $1,501 million of accepted tenders includes $148 million of noncompetitive tenders and $1,353 million of competitive tenders from private investors, including 4% of the amount of bonds bid for at the high yield.

In addition to the $1,501 million of tenders accepted in the auction process, $600 million of tenders were accepted at the average price from Government accounts and Federal Reserve Banks for their own account in exchange for securities maturing August 15, 1978.

PAUL A. V O LC K E R ,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis