June 24, 2010

Federal Reserve offers $2 billion in 28-day term deposits through its Term Deposit Facility

For release at 1:00 p.m. EDT

On Monday, June 28, 2010, the Federal Reserve will offer $2 billion in 28-day term deposits through its Term Deposit Facility. Additional information regarding the auction is listed below; the auction will be conducted as specified in this announcement, Regulation D, and the terms and conditions of the Term Deposit Facility.

Description of Offering and Competitive Auction Parameters

TDF Auction ID: A12
Offering Amount: $2,000,000,000
Term: 28 days
Auction Date: Monday, June 28, 2010
Opening Time: 10:00 a.m. ET
Closing Time: 2:00 p.m. ET
Notification Date: Tuesday, June 29, 2010
Settlement Date: Thursday, July 1, 2010
Maturity Date: Thursday, July 29, 2010
Competitive Auction Parameters
Maximum Number of Bids: 3
Minimum Bid Amount (per bid): $10,000
Bid Increment: $10,000
Maximum Bid Amount (per institution): $500,000,000
Maximum Bid Rate: 0.75000%
Incremental Bid Rate: 0.00100%
Award Minimum Amount: $10,000
Award Maximum Amount: $500,000,000


Competitive bids submitted at the stop-out rate will be pro-rated and will be rounded to multiples of $10,000. Normal rounding convention will be used, except that awards under $10,000 will be rounded to $10,000.

Non-Competitive bids are allowed in this auction. All non-competitive bids will be automatically awarded in full at the stop-out rate of the competitive auction. The minimum amount for a non-competitive bid is $10,000; the maximum amount is $5,000,000 and should be submitted in increments of $10,000. Non-Competitive bids must be submitted between 10:00 a.m. ET and 2:00 p.m. ET on the auction date.

Submission of Bids
Participants must submit bids by accessing the Term Deposit Facility application between the opening time and the closing time on the auction date.

Summary auction results will be published on the Board of Governors' website at approximately 12.00 p.m. (noon) ET on the notification date. Soon after, results will be posted on the Term Deposit Facility Resource Center page of the Central Bank Central website. Participant awards will be posted to the Term Deposit Facility application at approximately 12:00 p.m. ET on the notification date, and participants will be able to view their awards by accessing the Term Deposit Facility application.

Last Update: June 24, 2010