# INTRODUCTION: Public Debt Operations

Chapter 31 of Title 31 of the United States Code allows the Secretary of
Treasury to borrow money by issuing Treasury securities. The Secretary
determines the terms and conditions of issue, conversion, maturity,
payment, and interest rate. New issues of Treasury notes mature in 2 to
10 years. Bonds mature in more than 10 years from the issue date. Each
outstanding marketable security is listed in the "Monthly Statement of
the Public Debt of the United States." The information in this section
of the "Treasury Bulletin" pertains only to marketable Treasury
securities.

-   Table **PDO-1** presents the results of weekly auctions of 4-, 13-,
    and 26-week bills. Treasury bills mature each Thursday. Issues of 4-
    and 13-week bills are *reopenings* of 26-week bills. High yields on
    accepted tenders and the dollar value of total bids are presented,
    with the dollar value of awards made on both competitive and
    noncompetitive bases.

To encourage the participation of individuals and smaller institutions,
Treasury accepts noncompetitive tenders of up to \$5 million for bills
and \$5 million for notes and bonds in each auction of securities.

-   Table **PDO-2** lists the results of auctions of marketable
    securities, other than weekly bills, in chronological order over the
    past 2 years. Issues of *cash management* bills also are presented.

**Note:** Additional information, including maturity schedules of
interest-bearing marketable public debt securities other than regular
weekly and 52-week Treasury bills outstanding, can now be found on the
Bureau of Public Debt's website at http://www.treasurydirect.gov/govt/
reports/pd/pd\_ pdotables_downloadable_files.htm.

**Note:** On April 30, 2008, Treasury announced the reintroduction of
the 52-week bill. The first auction of this security took place on June
3, 2008.

**Note:** Cash managements bills that are identified below are issued as
part of the Supplementary Financing Program (SFP). For more details
about the SFP, visit www.treasury.gov/ press/releases/hp1144.htm or call
202-622-2960.

## TREASURY FINANCING: JULY-SEPTEMBER

\[Source: Bureau of the Public Debt, Office of Financing\]

J U L Y

Cash Management Bills

On July 7, 2008, Treasury announced it would auction \$6,000 million of
7-day bills. They were issued July 10 and matured July 17. The issue was
to raise new cash. Treasury auctioned the bills on July 8. Tenders
totaled \$28,209 million; Treasury accepted \$6,000 million. The high
bank discount rate was 1.930 percent.

On July 17, Treasury announced it would auction \$9,000 million of 9-day
bills. They were issued July 22 and matured July 31. The issue was to
raise new cash. Treasury auctioned the bills on July 21. Tenders totaled
\$31,915 million; Treasury accepted \$9,000 million. The high bank
discount rate was 1.565 percent.

52-Week Bills

On June 26, 2008, Treasury announced it would auction \$17,000 million
of 364-day Treasury bills. They were issued July 3, and will mature July
2, 2009. The issue was to refund \$65,999 million of all maturing bills
and raise new cash of approximately \$23,001 million. Treasury auctioned
the bills on July 1. Tenders totaled \$43,110 million; Treasury accepted
\$17,000 million which included \$132 million of noncompetitive tenders
from the public. The high bank discount rate was 2.295 percent.

Auction of 10-Year Treasury Inflation-Protected\
Security (TIPS)

On July 7, 2008, Treasury announced it would auction \$8,000 million of
10-year TIPS to raise new cash of approximately \$8,000 million.

The 10-year TIPS of Series D-2018 were dated and issued July 15. They
are due July 15, 2018, with interest payable on January 15 and July 15
until maturity. Treasury set an interest rate of 1-3/8 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the TIPS before 12:00 noon eastern time
(e.t.) for noncompetitive tenders and before 1:00 p.m. e.t. for
competitive tenders on July 10. Tenders totaled \$14,642 million;
Treasury accepted \$8,000 million. All noncompetitive and successful
competitive bidders were allotted securities at the high yield of 1.485
percent with an equivalent adjusted price of \$98.981282. Treasury
accepted in full all competitive tenders at yields lower than 1.485.
Tenders at the high yield were allotted 55.02 percent. The median yield
was 1.420 percent, and the low yield was 1.300 percent. Noncompetitive
tenders totaled \$88 million. Competitive tenders accepted from private
investors totaled \$7,862 million. The minimum par amount required for
Separate Trading of Registered Interest and Principal Securities
(STRIPS) of TIPS of Series D-2018 is \$100.

Auction of 19-Year 6-Month 1-3/4 Percent TIPS

On July 17, 2008, Treasury announced it would auction \$6,000 million of
19-year 6-month 1-3/4 percent TIPS. The issue was to refund \$20,040
million of securities maturing July 31 and to raise new cash of
approximately \$37,960 million.

The 19-year 6-month TIPS of January 2028 were dated July 15 and issued
July 31. They are due January 15, 2028, with interest payable on January
15 and July 15 until maturity.

Treasury received tenders for the TIPS before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on July 22. Tenders totaled \$9,458 million; Treasury accepted \$6,000
million. All noncompetitive and successful competitive bidders were
allotted securities at the high yield of 2.219 percent with an
equivalent adjusted price of \$95.749964. Treasury accepted in full all
competitive tenders at yields lower than 2.219. Tenders at the high
yield were allotted 88.95 percent. The median yield was 2.130 percent,
and the low yield was 2.000 percent. Noncompetitive tenders totaled \$33
million. Competitive tenders accepted from private investors totaled
\$5,967 million. Adjusted accrued interest of \$0.78657 per \$1,000 must
be paid for the period from July 15 to July 31. Both the unadjusted
price of \$92.621219 and the unadjusted accrued interest of \$0.76087
were adjusted by an index ratio of 1.03378 for the period from January
15 to July 31.

In addition to the \$6,000 million of tenders accepted in the auction
process, Treasury accepted \$661 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of TIPS of January
2028 is \$100.

Auction of 2-Year Notes

On July 21, 2008, Treasury announced it would auction \$31,000 million
of 2-year notes of Series AA-2010. The issue was to refund \$20,040
million of securities maturing July 31 and to raise new cash of
approximately \$37,960 million.

The notes of Series AA-2010 were dated and issued July 31. They are due
July 31, 2010, with interest payable on January 31 and July 31 until
maturity. Treasury set an interest rate of 2-3/4 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on July 23. Tenders totaled \$75,113 million; Treasury accepted \$31,000
million. All noncompetitive and successful competitive bidders were
allotted securities at the high yield of 2.820 percent with the
equivalent price of \$99.864799. Treasury accepted in full all
competitive tenders at yields lower than 2.820 percent. Tenders at the
high yield were allotted 44.86 percent. The median yield was 2.770
percent, and the low yield was 2.740 percent. Noncompetitive tenders
totaled \$823 million. Competitive tenders accepted from private
investors totaled \$30,152 million.

In addition to the \$31,000 million of tenders accepted in the auction
process, Treasury accepted \$3,415 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
AA-2010 is \$100.

Auction of 5-Year Notes

On July 21, 2008, Treasury announced it would auction \$21,000 million
of 5-year notes of Series N-2013. The issue was to refund \$20,040
million of securities maturing July 31 and to raise new cash of
approximately \$37,960 million.

The notes of Series N-2013 were dated and issued July 31. They are due
July 31, 2013, with interest payable on January 31 and July 31 until
maturity. Treasury set an interest rate of 3-3/8 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on July 24. Tenders totaled \$51,619 million; Treasury accepted \$21,000
million. All noncompetitive and successful competitive bidders were
allotted securities at the high yield of 3.440 percent with an
equivalent price of \$99.703743. Treasury accepted in full all
competitive tenders at yields lower than 3.440 percent. Tenders at the
high yield were allotted 36.65 percent. The median yield was 3.390
percent, and the low yield was 3.350 percent. Noncompetitive tenders
totaled \$100 million. Competitive tenders accepted from private
investors totaled \$20,875 million.

In addition to the \$21,000 million of tenders accepted in the auction
process, Treasury accepted \$2,313 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
N-2013 is \$100.

52-Week Bills

On July 24, 2008, Treasury announced it would auction \$19,000 million
of 364-day Treasury bills. They were issued July 31, and will mature
July 30, 2009. The issue was to refund \$80,807 million of all maturing
bills and raise new cash of approximately \$13,193 million. Treasury
auctioned the bills on July 29. Tenders totaled \$47,288 million;
Treasury accepted \$19,000 million. That included \$295 million of
noncompetitive tenders from the public. The high bank discount rate was
2.290 percent.

A U G U S T

Cash Management Bills

On August 7, 2008, Treasury announced it would auction \$26,000 million
of 155-day bills. They were issued August 13 and will mature January 15,
2009. The issue was to raise new cash. Treasury auctioned the bills on
August 12. Tenders totaled \$71,778 million; Treasury accepted \$26,000
million. The high bank discount rate was 1.950 percent.

On August 11, Treasury announced it would auction \$29,000 million of
31-day bills. They were issued August 15 and matured September 15. The
issue was to raise new cash. Treasury auctioned the bills on August 14.
Tenders totaled \$68,776 million; Treasury accepted \$29,000 million.
The high bank discount rate was 1.940 percent.

On August 21, Treasury announced it would auction \$11,000 million of
30-day bills. They were issued August 26 and matured September 25. The
issue was to raise new cash. Treasury auctioned the bills on August 25.
Tenders totaled \$39,798 million; Treasury accepted \$11,000 million.
The high bank discount rate was 1.750 percent.

August Quarterly Financing

On July 30, 2008, Treasury announced it would auction \$17,000 million
of 10-year notes of Series E-2018 and \$10,000 million of 29-year
9-month bonds of May 2038 to refund \$43,499 million of Treasury
securities maturing on August 15 and to pay down approximately \$16,499
million.

The 10-year notes of Series E-2018 were dated and issued August 15. They
are due August 15, 2018, with interest payable on February 15 and August
15 until maturity. Treasury set an interest rate of 4 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on August 6. Tenders totaled \$44,367 million; Treasury accepted
\$17,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 4.075 percent with an
equivalent price of \$99.389034. Treasury accepted in full all
competitive tenders at yields lower than 4.075 percent. Tenders at the
high yield were allotted 3.35 percent. The median yield was 4.050
percent, and the low yield was 3.950 percent. Noncompetitive tenders
totaled \$118 million. Competitive tenders accepted from private
investors totaled \$16,857 million.

In addition to the \$17,000 million of tenders accepted in the auction
process, Treasury accepted \$6,338 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
E-2018 is \$100.

The 29-year 9-month bonds of May 2038 were dated May 15 and issued
August 15. They are due May 15, 2038, with interest payable on November
15 and May 15 until maturity. Treasury set an interest rate of 4-1/2
percent after determining which tenders were accepted on a yield auction
basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on August 7. Tenders totaled \$23,998 million; Treasury accepted
\$10,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 4.609 percent with an
equivalent price of \$98.231860. Treasury accepted in full all
competitive tenders at yields lower than 4.609 percent. Tenders at the
high yield were allotted 59.02 percent. The median yield was 4.585
percent, and the low yield was 4.550 percent. Noncompetitive tenders
totaled \$39 million. Competitive tenders accepted from private
investors totaled \$9,961 million. Accrued interest of \$11.25000 per
\$1,000 must be paid for the period from May 15 to August 15.

In addition to the \$10,000 million of tenders accepted in the auction
process, Treasury accepted \$3,728 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of bonds of May
2038 is \$100.

52-Week Bills

On August 21, 2008, Treasury announced it would auction \$20,000 million
of 364-day Treasury bills. They were issued August 28, and will mature
August 27, 2009. The issue was to refund \$79,163 million of all
maturing bills and raise new cash of approximately \$24,837 million.
Treasury auctioned the bills on August 26. Tenders totaled \$46,831
million; Treasury accepted \$20,000 million. That included \$260 million
of noncompetitive tenders from the public**.** The high bank discount
rate was 2.140 percent.

S E P T E M B E R

Cash Management Bills

On September 4, 2008, Treasury announced it would auction \$20,000
million of 6-day bills. They were issued September 9 and matured
September 15. The issue was to raise new cash. Treasury auctioned the
bills on September 8. Tenders totaled \$53,800 million; Treasury
accepted \$20,000 million. The high bank discount rate was 2.000
percent.

On September 17, Treasury announced it would auction \$40,000 million of
35-day bills. They were issued September 18 and matured October 23. This
issue was to raise new cash and was part of the Supplementary Financing
Program (SFP). Treasury auctioned the bills on September 17. Tenders
totaled \$98,002 million; Treasury accepted \$40,000 million. The high
bank discount rate was 0.300 percent.

On September 17, Treasury announced it would auction \$30,000 million of
20-day bills. They were issued September 19 and matured October 9. This
issue was to raise new cash and was part of the SFP. Treasury auctioned
the bills on September 18. Tenders totaled \$97,075 million; Treasury
accepted \$30,000 million. The high bank discount rate was 0.100
percent.

On September 17, Treasury announced it would auction \$30,000 million of
76-day bills. They were issued September 19 and will mature December 4.
This issue was to raise new cash and was part of the SFP. Treasury
auctioned the bills on September 18. Tenders totaled \$64,878 million;
Treasury accepted \$30,000 million. The high bank discount rate was
0.250 percent.

On September 18, Treasury announced it would auction \$30,000 million of
45-day bills. They were issued September 22 and will mature November 6.
This issue was to raise new cash and was part of the SFP. Treasury
auctioned the bills on September 19. Tenders totaled \$56,098 million;
Treasury accepted \$30,000 million. The high bank discount rate was
1.800 percent.

On September 18, Treasury announced it would auction \$30,000 million of
59-day bills. They were issued September 22 and will mature November 20.
This issue was to raise new cash and was part of the SFP. Treasury
auctioned the bills on September 19. Tenders totaled \$71,656 million;
Treasury accepted \$30,000 million. The high bank discount rate was
1.990 percent.

On September 18, Treasury announced it would auction \$40,000 million of
7-day bills. They were issued September 25 and matured October 2. This
issue was to raise new cash and was part of the SFP. Treasury auctioned
the bills on September 24. Tenders totaled \$103,783 million; Treasury
accepted \$40,000 million. The high bank discount rate was 0.050
percent.

On September 24, Treasury announced it would auction \$40,000 million of
34-day bills. They were issued September 26 and matured October 30. This
issue was to raise new cash and was part of the SFP. Treasury auctioned
the bills on September 25. Tenders totaled \$84,551 million; Treasury
accepted \$40,000 million. The high bank discount rate was 0.990
percent.

On September 25, Treasury announced it would auction \$60,000 million of
101-day bills. They were issued September 29 and will mature January 8,
2009. This issue was to raise new cash and was part of the SFP. Treasury
auctioned the bills on September 26. Tenders totaled \$205,851 million;
Treasury accepted \$60,000 million. The high bank discount rate was
1.650 percent.

Auction of 2-Year Notes

On August 25, 2008, Treasury announced it would auction \$32,000 million
of 2-year notes of Series AB-2010. The issue was to refund \$22,000
million of securities maturing August 31 and to raise new cash of
approximately \$32,000 million.

The notes of Series AB-2010 were dated August 31 and issued September 2.
They are due August 31, 2010, with interest payable on February 28 and
August 31 until maturity. Treasury set an interest rate of 2-3/8 percent
after determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on August 27. Tenders totaled \$69,778 million; Treasury accepted
\$32,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 2.380 percent with an
equivalent price of \$99.990164. Treasury accepted in full all
competitive tenders at yields lower than 2.380 percent. Tenders at the
high yield were allotted 54.89 percent. The median yield was 2.330
percent, and the low yield was 2.268 percent. Noncompetitive tenders
totaled \$752 million. Competitive tenders accepted from private
investors totaled \$31,223 million. Accrued interest of \$0.13122 per
\$1,000 must be paid for the period from August 31 to September 2.

In addition to the \$32,000 million of tenders accepted in the auction
process, Treasury accepted \$2,669 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
AB-2010 is \$100.

Auction of 5-Year Notes

On August 25, 2008, Treasury announced it would auction \$22,000 million
of 5-year notes of Series P-2013. The issue was to refund \$22,000
million of securities maturing August 31 and to raise new cash of
approximately \$32,000 million.

The notes of Series P-2013 were dated August 31 and issued September 2.
They are due August 31, 2013, with interest payable on the last calendar
day of February and August 31 until maturity. Treasury set an interest
rate of 3-1/8 percent after determining which tenders were accepted on a
yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on August 28. Tenders totaled \$47,074 million; Treasury accepted
\$22,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 3.129 percent with an
equivalent price of \$99.981374. Treasury accepted in full all
competitive tenders at yields lower than 3.129 percent. Tenders at the
high yield were allotted 95.36 percent. The median yield was 3.070
percent, and the low yield was 3.000 percent. Noncompetitive tenders
totaled \$124 million. Competitive tenders accepted from private
investors totaled \$21,851 million. Accrued interest of \$0.17265 per
\$1,000 must be paid for the period from August 31 to September 2.

In addition to the \$22,000 million of tenders accepted in the auction
process, Treasury accepted \$1,835 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
P-2013 is \$100.

Auction of 9-Year 11-Month 4 Percent Notes

On September 8, 2008, Treasury announced that it would auction \$12,000
million of 9-year 11-month 4 percent notes of Series E-2018. The issue
was to refund \$14,535 million of securities maturing September 15 and
to pay down approximately \$2,535 million.

The notes of Series E-2018 were dated August 15 and issued September 15.
They are due August 15, 2018, with interest payable on February 15 and
August 15 until maturity.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on September 11. Tenders totaled \$30,136 million; Treasury accepted
\$12,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 3.628 percent with an
equivalent price of \$103.070116. Treasury accepted in full all
competitive tenders at yields lower than 3.628 percent. Tenders at the
high yield were allotted 82.60 percent. The median yield was 3.592
percent, and the low yield was 3.550 percent. Noncompetitive tenders
totaled \$39 million. Competitive tenders accepted from private
investors totaled \$11,961 million. Accrued interest of \$3.36957 per
\$1,000 must be paid for the period from August 15 to September 15.

In addition to the \$12,000 million of tenders accepted in the auction
process, Treasury accepted \$1,467 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
E-2018 is \$100.

52-Week Bills

On September 18, 2008, Treasury announced it would auction \$20,000
million of 364-day Treasury bills. They were issued September 25, and
will mature September 24, 2009. The issue was to refund \$84,013 million
of all maturing bills and raise new cash of approximately \$59,987
million. Treasury auctioned the bills on September 23. Tenders totaled
\$61,358 million; Treasury accepted \$20,000 million. That included
\$367 million of noncompetitive tenders from the public. The high bank
discount rate was 1.955 percent.

Auction of 2-Year Notes

On September 22, 2008, Treasury announced it would auction \$34,000
million of 2-year notes of Series AC-2010. The issue was to refund
\$19,125 million of securities maturing September 30 and to raise new
cash of approximately \$38,875 million.

The notes of Series AC-2010 were dated and issued September 30. They are
due September 30, 2010, with interest payable on March 31 and September
30 until maturity. Treasury set an interest rate of 2 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on September 24. Tenders totaled \$75,243 million; Treasury accepted
\$34,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 2.115 percent with an
equivalent price of \$99.775954. Treasury accepted in full all
competitive tenders at yields lower than 2.115 percent. Tenders at the
high yield were allotted 15.68 percent. The median yield was 2.050
percent, and the low yield was 1.990 percent. Noncompetitive tenders
totaled \$645 million. Competitive tenders accepted from private
investors totaled \$33,330 million.

In addition to the \$34,000 million of tenders accepted in the auction
process, Treasury accepted \$3,150 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
AC-2010 is \$100.

Auction of 5-Year Notes

On September 22, 2008, Treasury announced it would auction \$24,000
million of 5-year notes of Series Q-2013. The issue was to refund
\$19,125 million of securities maturing September 30 and to raise new
cash of approximately \$38,875 million.

The notes of Series Q-2013 were dated and issued September 30. They are
due September 30, 2013, with interest payable on March 31 and September
30 until maturity. Treasury set an interest rate of 3-1/8 percent after
determining which tenders were accepted on a yield auction basis.

Treasury received tenders for the notes before 12:00 noon e.t. for
noncompetitive tenders and before 1:00 p.m. e.t. for competitive tenders
on September 25. Tenders totaled \$45,802 million; Treasury accepted
\$24,000 million. All noncompetitive and successful competitive bidders
were allotted securities at the high yield of 3.129 percent with an
equivalent price of \$99.981618. Treasury accepted in full all
competitive tenders at yields lower than 3.129 percent. Tenders at the
high yield were allotted 41.34 percent. The median yield was 3.000
percent, and the low yield was 2.850 percent. Noncompetitive tenders
totaled \$105 million. Competitive tenders accepted from private
investors totaled \$23,870 million.

In addition to the \$24,000 million of tenders accepted in the auction
process, Treasury accepted \$2,224 million from FRBs for their own
accounts. The minimum par amount required for STRIPS of notes of Series
Q-2013 is \$100.