Federal Reserve offers $5 billion in 28-day term deposits through its Term Deposit Facility

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Federal Reserve offers $5 billion in 28-day term deposits through its Term Deposit Facility

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The following press release was published by the Board of Governors of the Federal Reserve System on Sept. 30, 2010. It is reproduced in full below.

On Monday, October 4, 2010, the Federal Reserve will offer $5 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: A14 Offering Amount: $5,000,000,000 Term: 28 days Auction Date: Monday, October 4, 2010 Opening Time: 10:00 a.m. ET Closing Time: 2:00 p.m. ET Notification Date: Tuesday, October 5, 2010 Settlement Date: Thursday, October 7, 2010 Maturity Date: Thursday, November 4, 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): $1,250,000,000 Maximum Bid Rate: 0.75000% Incremental Bid Rate: 0.00100% Award Minimum Amount: $10,000 Award Maximum Amount: $1,250,000,000 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.

Notification 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.

Source: Board of Governors of the Federal Reserve System

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