July 28, 2008
Federal Reserve will offer $75 billion in 28-day credit through its Term Auction Facility today
For release at 10:00 a.m. EDT
On July 28, 2008, the Federal Reserve will offer $75 billion in 28-day credit through its Term Auction Facility. Additional information regarding the auction is listed below; the auction will be conducted as specified in this announcement, Regulation A, and the terms and conditions of the Term Auction Facility (www.federalreserve.gov/monetarypolicy/taf.htm).
Description of Offering and Auction Parameters
| Offering Amount: | $75 billion |
| Term: | 28-day loan |
| Bid Submission Date: | July 28, 2008 |
| Opening Time: | 11 a.m. EDT |
| Closing Time: | 1 p.m. EDT |
| Notification Date: | July 29, 2008 |
| Settlement Date: | July 31, 2008 |
| Maturity Date: | August 28, 2008 |
| Minimum Bid Amount (per bid): | $5 million |
| Bid Increment: | $100,000 |
| Maximum Bid Amount (per institution): | $7.5 billion (10% of Offering Amount) |
| Minimum Bid Rate: | 2.01 percent |
| Incremental Bid Rate: | 0.001 percent |
| Minimum Award: | $10,000 |
| Maximum Award: | $7.5 billion (10% of Offering Amount) |
Submission of Bids
Participants must submit bids by phone to their local Reserve Bank between the opening time and closing time on the bid submission date.
Notification
Summary auction results will be published on the website of the Board of Governors of the Federal Reserve System (www.federalreserve.gov/monetarypolicy/taf.htm) at approximately 10:00 a.m. EDT on the notification date. Between 10:00 a.m. and noon EDT on the notification date, Reserve Banks will notify individual institutions in their districts that have submitted winning bids of their awards. Participants have until 3:00 p.m. EDT on the notification date to inform their local Reserve Bank of any error.
Rounding Convention
Pro rata awards 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.