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U.S. Treasury Operating Circular

The Investment Fund Operating Circular (PDF, File Size 175 KB, uploaded 08/07/2012) documents the responsibilities of the U.S. Treasury and the Federal Program Agencies involving Government Account Series securities (GAS). The Operating Circular:

  • Communicates the policies and procedures of the U.S. Treasury.
  • Applies to all government investment funds except for deposit funds and investment funds managed by the U.S. Treasury.
  • Includes an operational reference manual and a securities offering circular.

Revisions to the Operating Circular

The Department of Treasury’s Operating Circular has been revised. The Operating Circular outlines the responsibilities relating to government investment accounts and investment in Government Account Series (GAS) securities.

There are five major updates to the operating circular, four of which are immediately effective, and one is effective on November 3, 2008. The updates are listed below:

  • The broadest change updated the Operating Circular to reflect the FedInvest system as the standard method for issuing investment and redemption instructions to the Bureau of the Fiscal Service (Fiscal Service). Paper investment/redemption forms may still be used as a contingency if the agency is unable to access the FedInvest system.
  • The Operating Circular now applies to deposit funds that have specific statutory language authorizing fund investments. Deposit funds without specific statutory language would need an agreement with Treasury to invest. If you have questions concerning this point, contact the Fiscal Service.
  • The minimum investment requirement of $1,000 has been removed.  The Treasury Department now permits investments to the penny.
  • Rules and requirements for investing in Treasury special zero-coupon bonds have been incorporated into this Operating Circular. A separate memorandum of understanding is no longer required, however, the agency must first contact the Fiscal Service before investing in zero-coupon bonds.
  • This Operating Circular contains a change to the interest rate formula for determining the Overnight Certificate of Indebtedness.  The revised rate will be linked to the shortest regularly issued Treasury security, which is, currently, the 4-week bill.  The new rate will more closely align with Treasury’s borrowing costs on publicly traded securities.  This new rate will take effect for overnight investments made on November 3, 2008.

A subscription to the Operating Circular mailing list will ensure that you receive e-mail each time the Operating Circular is updated. To subscribe or unsubscribe to this list, select the appropriate link below.
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