Treasury Announces Bill Auction Change

FOR IMMEDIATE RELEASE

March 18, 1997

Beginning with the 52-week bill auction tentatively scheduled for March 26, 1997, awards made to Federal Reserve Banks for their own accounts in Treasury bill auctions will be treated as additions to the announced offering amount. Currently, awards to these accounts are within the announced offering amount.

The announcement of the 52-week bill auction, scheduled for March 21, will be the first announcement to reflect this change. We are making this change in order to provide more complete information to market participants. Awards to these accounts will continue to be at the weighted average discount rate of accepted competitive tenders.

The treatment of awards to Federal Reserve Banks for foreign and international monetary authorities in Treasury bill auctions will not change. Maturing bills held by these accounts may be refunded within the announced offering amount at the weighted average discount rate of accepted competitive tenders. Purchases by these accounts that exceed the maturing amounts will continue to be additions to the announced offering amount.

The Uniform Offering Circular (31 CFR Part 356) will be amended to reflect this change in the treatment of awards to Federal Reserve Banks for their own accounts in Treasury bill auctions.