Treasury Calls 14 Percent Bonds of 2006-11
FOR IMMEDIATE RELEASE
July 14, 2006
Contact: Stephen Meyerhardt
The Treasury today announced the call for redemption at par on November 15, 2006, of the 14% Treasury Bonds of 2006-11, originally issued November 16, 1981, due November 15, 2011 (CUSIP No. 912810CY2). There are $4,048 million of these bonds outstanding, of which $3,073 million are held by private investors. Securities not redeemed on November 15, 2006 will stop earning interest.
These bonds are being called to reduce the cost of debt financing. The 14% 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 $1,364 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 coupon or registered form should be presented for redemption to financial institutions or mailed directly to the Bureau of the Public Debt, Definitives Section, P.O. Box 426, Parkersburg, WV 26106-0426. For more information concerning called coupon or registered bonds, you may contact the Definitives Section at (304) 480-7537.