September 05, 2012
Federal Reserve offers $3 billion in 28-day term deposits through its Term Deposit Facility
For release at 1:00 p.m. EDT
On Monday, September 10, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations. 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 (http://www.frbservices.org/centralbank/term_deposit_facility.html).
Description of Offering and Competitive Auction Parameters
| TDF Auction ID: | A26 |
| Offering Amount: | $3,000,000,000 |
| Term: | 28 days |
| Auction Date: | Monday, September 10, 2012 |
| Opening Time: | 10:00 a.m. ET |
| Closing Time: | 2:00 p.m. ET |
| Notification Date: | Tuesday, September 11, 2012 |
| Settlement Date: | Thursday, September 13, 2012 |
| Maturity Date: | Thursday, October 11, 2012 |
| 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 (https://www.federalreserve.org/arrow/ARROWWeb/home.do) 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 (http://www.federalreserve.gov/monetarypolicy/tdf.htm) 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 (http://www.frbservices.org/centralbank/term_deposit_facility.html). 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.