Treasury Calls 8 Percent Bonds of 1996-01
FOR IMMEDIATE RELEASE
April 11, 1996
The Treasury today announced the call for redemption at par on August 15, 1996, of the 8% Treasury Bonds of 1996-01, dated August 16, 1976, due August 15, 2001 (CUSIP No. 912810 BW 7). There are $1,485 million of these bonds now outstanding, of which $728 million are held by private investors. Securities not redeemed on August 15, 1996, will cease to earn interest.
These bonds are being called to reduce the cost of financing the public debt. The Treasury plans to refinance the call of the $728 million that is held by private investors through additions to regularly scheduled securities over the next several months. We estimate that the budget outlay savings from the call will be about $55 - $65 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 TREASURY DIRECT accounts. Bonds held in coupon or registered form should be presented for redemption through a financial institution, or to a Federal Reserve Bank or Branch, or to the Bureau of the Public Debt, Washington, D. C.