[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR356.21]

[Page 378]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 356_SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, 
AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 
1-93)--Table of Contents
 
          Subpart C_Determination of Auction Awards; Settlement
 
Sec.  356.21  How are awards at the high yield or discount rate 
calculated?

    (a) Awards to submitters. We generally prorate bids at the highest 
accepted yield or discount rate under Sec.  356.20(a)(2) of this part. 
For example, if 80.15% is the announced percentage at the highest yield 
or discount rate, we award 80.15% of the amount of each bid at that 
yield or rate. A bid for $100 million at the highest accepted yield or 
discount rate would be awarded $80,150,000 in this example. We always 
make awards for at least the minimum to bid, and above that amount we 
make awards in the appropriate multiple to bid. For example, Treasury 
bills may be issued with a minimum to bid of $1,000 and multiples to bid 
of $1,000. Say we accept an $18,000 bid at the high discount rate, and 
the percent awarded at the high discount rate is 88.27%. We would award 
$16,000 to that bidder, which is an upward adjustment from $15,888.60 
($18,000 x .8827) to the nearest multiple of $1,000. If we were to award 
4.65% of bids at the highest accepted rate, for example, the award for a 
$10,000 bid at that rate would be $1,000, rather than $465, in order to 
meet the minimum to bid for a bill issue.
    (b) Awards to customers. The same prorating rules apply to customers 
as apply to submitters. Depository institutions and dealers, whether 
submitters or intermediaries, are responsible for prorating awards for 
their customers at the same percentage that we announce. For example, if 
80.15% is the announced percentage at the highest yield or discount 
rate, then each customer bid at that yield or rate must be awarded 
80.15%.