February 03, 2011
Federal Reserve offers $5 billion in 28-day term deposits through its Term Deposit Facility
For release at 1:00 p.m. EST
On Monday, February 7, 2011 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: | A16 |
| Offering Amount: | $5,000,000,000 |
| Term: | 28 days |
| Auction Date: | Monday, February 7, 2011 |
| Opening Time: | 10:00 a.m. ET |
| Closing Time: | 2:00 p.m. ET |
| Notification Date: | Tuesday, February 8, 2011 |
| Settlement Date: | Thursday, February 10, 2011 |
| Maturity Date: | Thursday, March 10, 2011 |
| 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.