On March 24, 2014, the Federal Reserve will conduct a floating-rate offering of term deposits through its Term Deposit Facility (TDF). As noted in the Federal Reserve Board's Feb. 21, 2014, release, this operation will have a term of seven days and the rate will be set equal to the sum of the interest rate paid on excess reserves (currently 25 basis points) plus a fixed spread of 1 basis point, resulting in an effective rate of 26 basis points. The maximum tender amount will be $1,250,000,000.
This operation is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to gain familiarity with term deposit operations. Additional information regarding the operation is listed below; the operation will be conducted as specified in this announcement, Regulation D, and the terms and conditions of the Term Deposit Facility.
Description of Operation and Tender Parameters TDF Operation ID: F38 Operation Format: Floating-Rate Term: Seven-Day Reference Rate: Interest rate paid on excess reserves (IOER) Spread: 0.01000% Operation Date: Monday, March 24, 2014 Opening Time: 10:00 a.m. ET Closing Time: 2:00 p.m. ET Notification Date (summary results): Tuesday, March 25, 2014 Settlement Date: Thursday, March 27, 2014 Maturity Date: Thursday, April 3, 2014 Tender Parameters Maximum Number of Tenders: 1 Minimum Tender Amount: $10,000 Tender Increment: $10,000 Maximum Tender Amount (per institution): $1,250,000,000 Award Minimum Amount: $10,000 Award Maximum Amount: $1,250,000,000 All tenders that are complete and compliant with the operation parameters listed above will be automatically awarded in full. The minimum tender amount is $10,000; the maximum amount is $1,250,000,000 and should be submitted in increments of $10,000. All tenders must be submitted between the opening and closing time on the operation date.
Submission of Tender Participants must submit tenders by accessing the Term Deposit Facility application between the opening time and the closing time on the operation date.
Notification Participants will be able to view their awards by accessing the Term Deposit Facility application.
Summary operation results will be published on the Board of Governors' website at approximately 12:00 p.m. (noon) ET on the notification date.
For media inquiries, call 202-452-2955.
