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Treasury Calls 13-7/8 Percent Bonds of 2006-11


January 13, 2006

Contact: Stephen Meyerhardt

(202) 504-3792

The Treasury today announced the call for redemption at par on May 15, 2006, of the 13-7/8% Treasury Bonds of 2006-11, originally issued May 15, 1981, due May 15, 2011 (CUSIP No. 912810CV8). There are $3,545 million of these bonds outstanding, of which $2,471 million are held by private investors. Securities not redeemed on May 15, 2006 will stop earning interest.

These bonds are being called to reduce the cost of debt financing. The 13-7/8% interest rate is significantly above the current cost of securing financing for the five years remaining to their maturity. Using current market projections, Treasury estimates interest savings from the call and refinancing to be about $1,200 million.

Payment will be made automatically by the Treasury for bonds in book-entry form, whether held on the books of the Federal Reserve Banks or in TreasuryDirect accounts. Bonds held in registered form should be mailed directly to the Bureau of the Public Debt, Definitives Section, Customer Service Branch 3, P.O. Box 426, Parkersburg, WV 26106-0426. For more information concerning called registered bonds, you may contact the Definitives Section at (304) 480-7711.