Treasury Calls 10 Percent Bonds of 2005-10
FOR IMMEDIATE RELEASE
January 14, 2005
Contact: Stephen Meyerhardt
The Treasury today announced the call for redemption at par on May 15, 2005, of the 10% Treasury Bonds of 2005-10, originally issued May 15, 1980, due May 15, 2010 (CUSIP No. 912810CP1). There are $2,987 million of these bonds outstanding, of which $1,811 million are held by private investors. Securities not redeemed on May 15, 2005 will stop earning interest.
These bonds are being called to reduce the cost of debt financing. The 10% interest rate is significantly above the current cost of securing financing for the five years remaining to their maturity. In current market conditions, Treasury estimates that interest savings from the call and refinancing will be about $500 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) 480-7936.