(Archived Content)
Treasury announced today that it plans to begin regular weekly offerings of 4-week bills. The securities will be reopenings of outstanding 26-week bills. Regular weekly offerings of 4-week bills will help smooth seasonal fluctuations in Treasury's cash balances and reduce reliance on cash management bills.
The announcement for the first auction will be on Monday, July 30, 2001 at 11:30 a.m. for an auction on Tuesday, July 31, 2001 at 1:00 p.m., with settlement on Thursday, August 2. The 4-week bills will be offered in addition to regular weekly auctions of 13- and 26-week bills. Details about the new security are given in the attached fact sheet.
Subsequent announcements for 4-week bills will be on Mondays at 11:30 a.m. Auctions will take place on Tuesdays. Settlement will be on the same day as for the other regular weekly bills, the Thursday following each auction. Minimum bid amounts and multiples will be the same as for other regular weekly bills, $1000. These bills will not be available for purchase through TreasuryDirect.
In a companion press release, Treasury announced the publication in the Federal Register of an Advance Notice of Proposed Rulemaking (ANPR) that solicits public comments on potential modifications to Treasury's Uniform Offering Circular (31 CFR 356) regarding the calculation of the net long position (NLP) and the 35 percent award limit in marketable Treasury securities auctions. The potential modifications have been proposed to ensure active and wide participation in Treasury auctions, particularly in reopenings of securities which are auctions of additional amounts of previously issued securities.
Until Treasury makes a decision regarding potential modifications to the calculation of the NLP and auction award limit, competitive bidders in 4-week bill auctions will be required to report their NLP if they meet or exceed the reporting threshold. Treasury will not include NLPs in the calculation of the 35 percent award limit, but reported NLPs will be used to monitor distribution of securities in the new 4-week bill auctions. This announcement does not affect or change the NLP calculation, reporting requirements, and the application of the NLP for the auction of any security other than the 4-week bill.