News Column

Federal Reserve Offers Seven-day Term Deposits from its Term Deposit Facility

May 15, 2014



WASHINGTON, May 15 -- The Federal Reserve issued the following news release:

On May 19, 2014, the Federal Reserve will conduct a fixed-rate offering of term deposits through its Term Deposit Facility (TDF). The Federal Reserve will offer seven-day term deposits with an interest rate of 0.26000 percent and a maximum tender amount of $3,000,000,000. As noted in the Federal Reserve Board'sMay 9, 2014, release, this operation is part of the continuing program of operational testing of its policy tools designed to provide eligible institutions with an opportunity to gain familiarity with term deposit operations. Additional information regarding the operation is listed below; the operation will be conducted as specified in this announcement, Regulation D, and the terms and conditions of the Term Deposit Facility (http://www.frbservices.org/centralbank/term_deposit_facility.html).

Description of Operation and Tender Parameters

TDF Operation ID: F39

Operation Format: Fixed-Rate

Term: Seven-Day

Interest Rate: 0.26000%

Operation Date: Monday, May 19, 2014

Opening Time: 10:00 a.m. ET

Closing Time: 2:00 p.m. ET

Notification Date (summary results): Tuesday, May 20, 2014

Settlement Date: Thursday, May 22, 2014

Maturity Date: Thursday, May 29, 2014

Tender Parameters

Maximum Number of Tenders: 1

Minimum Tender Amount: $10,000

Tender Increment: $10,000

Maximum Tender Amount (per institution): $3,000,000,000

Award Minimum Amount: $10,000

Award Maximum Amount: $3,000,000,000

All tenders that are complete and compliant with the operation parameters listed above will be automatically awarded in full at the interest rate shown above. The minimum tender amount is $10,000; the maximum amount is $3,000,000,000 and should be submitted in increments of $10,000. All tenders must be submitted between the opening and closing time on the operation date.

Submission of Tender

Participants must submit tenders by accessing the Term Deposit Facility application (https://www.federalreserve.org/arrow/ARROWWeb/home.do) between the opening time and the closing time on the operation date.

Notification

Participants will be able to view their awards by accessing the Term Deposit Facility application.

Summary operation results will be published on the Board of Governors' website (http://www.federalreserve.gov/monetarypolicy/tdf.htm) at approximately 12:00 p.m. (noon) ET on the notification date.

For media inquiries, call 202-452-2955.

TNS 30BautistaJude 140516-4736697 30BautistaJude


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