Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds; Minimum Interest Rate, 11079-11080 [2011-4455]

Download as PDF Federal Register / Vol. 76, No. 40 / Tuesday, March 1, 2011 / Rules and Regulations Federal Register on December 29, 2010 (75 FR 81853). The new effective date for both documents is June 20, 2011. DATES: Effective March 1, 2011, the effective date of the final rule published December 8, 2010 (75 FR 76263) and correction document published December 29, 2010 (75 FR 81853) is delayed to June 20, 2011. FOR FURTHER INFORMATION CONTACT: Sarah Qureshi, Office of General Counsel, Bureau of Prisons, phone (202) 307–2105. SUPPLEMENTARY INFORMATION: In this document, the Bureau of Prisons delays the effective date of the final rule that appeared in the Federal Register on December 8, 2010, (75 FR 76263) and the subsequent correction which appeared in the Federal Register on December 29, 2010 (75 FR 81853). The new effective date for both documents is June 20, 2011. The first document issued a final rule amending the Bureau’s Inmate Discipline Program and Special Housing Units (SHU) regulations (28 CFR part 541, subpart A and subpart B), and the second document corrected typographical and numbering errors, but made no substantive changes to the final rule. Previously, both the final rule and the correction document had an effective date of March 1, 2011. We now delay the effective date of both the final rule and the correction document until June 20, 2011. Helen Marberry, Acting Director, Federal Bureau of Prisons. [FR Doc. 2011–4359 Filed 2–28–11; 8:45 am] BILLING CODE P and implement Safety and Environmental Management Systems (SEMS) for oil and gas and sulphur operations in the Outer Continental Shelf (OCS). This workshop is designed to provide an overview and background of the final rule, review and summarize responses to frequently asked questions, receive and respond to new questions pertaining to implementation, and describe BOEMRE audit methodologies for compliance reviews. DATES: The workshop will be held on March 15, 2011, from 9 a.m. to 1 p.m. ADDRESSES: The workshop will be held at the Hilton New Orleans Riverside, Two Poydras Street, New Orleans, Louisiana 70130. FOR FURTHER INFORMATION CONTACT: Ms. Deborah O’Brien by phone at (703) 787– 1579, or by e-mail at Deborah.O’Brien@boemre.gov. SUPPLEMENTARY INFORMATION: Subpart S Rulemaking On October 15, 2010, BOEMRE published the Final Rule for 30 CFR 250, Subpart S—Safety and Environmental Management Systems, in the Federal Register (75 FR 63610). This Final Rule incorporates by reference, and makes mandatory, API RP 75, Third Edition, May 2004, reaffirmed May 2008. This Final Rule became effective on November 15, 2010, and applies to all OCS oil and gas and sulphur operations and facilities under BOEMRE jurisdiction, including drilling, production, construction, well workover, well completion, well servicing, and DOI pipeline activities. AGENCY: Workshop Structure The primary intent of this workshop is to discuss the various elements necessary to implement a robust SEMS for OCS operations and how those elements may be assessed within an operator’s management system. The workshop will consist of BOEMRE presentations describing and discussing 30 CFR 250, Subpart S, the background leading to the regulations, frequently asked questions, and audit methodologies for compliance measurement. BOEMRE also will address questions asked by the audience. The Bureau of Ocean Energy Management, Regulation and Enforcement is announcing a workshop to discuss the new regulatory requirements for operators to develop Registration There is no registration fee for this workshop. However, to assess the number of participants, BOEMRE requests participants to register with Ms. Deborah O’Brien by phone at (703) 787–1579, or by e-mail at Deborah.O’Brien@boemre.gov, prior to DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management, Regulation and Enforcement 30 CFR Part 250 [Docket ID: BOEM–2010–0076] mstockstill on DSKH9S0YB1PROD with RULES Oil and Gas and Sulphur Operations in the Outer Continental Shelf—Safety and Environmental Management Systems; Public Workshop Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), Interior. ACTION: Notice; public workshop. SUMMARY: VerDate Mar<15>2010 18:07 Feb 28, 2011 Jkt 223001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 11079 the meeting. The deadline to register is 1 week before the workshop on March 8, 2011. Given the maximum capacity of the meeting room, seating is limited to 500. BOEMRE will make its presentation available via Web site at https://www.boemre.gov/semp/. BOEMRE will consider any questions submitted in advance so that the workshop can focus on key topics. Please submit questions to Ms. Deborah O’Brien in writing at Deborah.O’Brien@boemre.gov by March 8, 2011. Paperwork Reduction Act of 1995 (PRA) Statement This Federal Register document does not refer to or impose any information collection requirement subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) Dated: February 8, 2011. L. Renee Orr, Acting Associate Director for Offshore Energy and Minerals Management. [FR Doc. 2011–4334 Filed 2–28–11; 8:45 am] BILLING CODE 4310–MR– P DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 356 [Docket No. BPD GSRS 11–01; Department of the Treasury Circular, Public Debt Series No. 1–93] Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds; Minimum Interest Rate Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. AGENCY: This final rule amends Treasury’s marketable securities auction rules to establish a minimum interest rate of 1⁄8 of one percent for all new Treasury note and bond issues. DATES: Effective April 1, 2011. ADDRESSES: This final rule is available on the Bureau of the Public Debt’s Web site at: https://www.treasurydirect.gov. It is also available for public inspection and copying at the Treasury Department Library, Room 1428, Main Treasury Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. To visit the library, call (202) 622–0990 for an appointment. SUMMARY: Lori Santamorena, Chuck Andreatta, or Kevin Hawkins, Department of the Treasury, Bureau of the Public Debt, FOR FURTHER INFORMATION CONTACT: E:\FR\FM\01MRR1.SGM 01MRR1 11080 Federal Register / Vol. 76, No. 40 / Tuesday, March 1, 2011 / Rules and Regulations Government Securities Regulations Staff, (202) 504–3632. SUPPLEMENTARY INFORMATION: The Department of the Treasury (‘‘Treasury’’ or ‘‘We’’) is issuing an amendment to 31 CFR 356.20(b) of the Uniform Offering Circular for the Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds 1 (‘‘UOC’’ or ‘‘Auction Rules’’) to establish a minimum interest rate of 1⁄8 of one percent (i.e., 0.125 percent) for all new marketable Treasury note and bond issues. This amendment is not applicable to reopenings.2 In this rule we discuss how Treasury determines the interest rate for new note and bond issues, the reason for establishing a minimum interest rate, and the final amendment to the UOC. I. Determining the Interest Rate for New Treasury Note and Bond Issues In determining the interest rate for new note and bond issues, Treasury sets the interest rate at a 1⁄8 of one percent increment. The interest rate we establish produces the price closest to, but not above, par that corresponds to the yield awarded to successful competitive bidders.3 The interest rate in turn is used to establish the amount of the semi-annual interest payment that note and bond investors receive.4 II. Establishing a Minimum Interest Rate In an extremely low interest rate environment, a note or bond auction could result in an interest rate lower than Treasury’s 1⁄8 of one percent interest rate increment. If that were to happen, under the current methodology the new security would be issued with a zero percent interest rate and would have no semi-annual interest payments. Treasury is amending the UOC because we believe it is preferable that Treasury notes and bonds pay regular, semiannual interest payments. mstockstill on DSKH9S0YB1PROD with RULES III. Amendment to the Rule Accordingly, Treasury is amending paragraph (b) of 31 CFR 356.20 to state 1 See 58 FR 412, January 5, 1993. The circular, as amended, is codified at 31 CFR part 356. The UOC, together with the offering announcement for each auction, sets out the terms and conditions for the sale and issuance by the Treasury to the public of marketable book-entry Treasury bills, notes, and bonds. 2 The term reopening is defined at 31 CFR 356.2 as the auction of an additional amount of an outstanding security. 3 For example, the two-year note auction conducted on December 29, 2005, resulted in a yield of 4.404 percent. The interest rate was set at 43⁄8 percent with a price of 99.944505. See https://www.treasurydirect.gov/instit/annceresult/ press/preanre/2005/ofk1229051.pdf. 4 See Appendix B to part 356—Formulas and Tables. VerDate Mar<15>2010 18:07 Feb 28, 2011 Jkt 223001 that if a Treasury note or bond auction results in a yield lower than 0.125 percent, the interest rate will be set at 1⁄8 of one percent with the price adjusted accordingly (i.e., at a premium). This change applies to all new marketable Treasury note and bond issues: Treasury fixed-principal 5 (also referred to as nominal) notes and bonds as well as Treasury inflation-protected notes and bonds. Procedural Requirements Executive Order 12866. This final rule is not a ‘‘significant regulatory action’’ pursuant to Executive Order 12866. Administrative Procedure Act (APA). Because this rule relates to public contracts and procedures for United States securities, the notice, public comment, and delayed effective date provisions of the Administrative Procedure Act are inapplicable, pursuant to 5 U.S.C. 553(a)(2). Regulatory Flexibility Act. As no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) do not apply. Paperwork Reduction Act. There is no new collection of information contained in this final rule, and, therefore, the Paperwork Reduction Act does not apply. The Office of Management and Budget has approved the collections of information already contained in 31 CFR part 356, under control number 1535–0112. Under the Paperwork Reduction Act, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. List of Subjects in 31 CFR Part 356 Bonds, Federal Reserve System, Government Securities, Securities. For the reasons set forth in the preamble, 31 CFR part 356 is amended as follows: 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) 1. The authority citation for part 356 continues to read as follows: ■ Authority: 5 U.S.C. 301; 31 U.S.C. 3102, et seq.; 12 U.S.C. 391. 5 We use the term ‘‘fixed-principal’’ to distinguish such securities from ‘‘inflation-protected’’ securities. We refer to fixed-principal notes and fixedprincipal bonds as ‘‘notes’’ and ‘‘bonds’’ in official Treasury publications, such as auction announcements and auction results press releases, as well as in the auction system. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 2. Section 356.20 is amended by revising the introductory text of paragraph (b) to read as follows: ■ § 356.20 How does the Treasury determine auction awards? * * * * * (b) Determining the interest rate for new note and bond issues. We set the interest rate at a 1⁄8 of one percent increment. If a Treasury note or bond auction results in a yield lower than 0.125 percent, the interest rate will be set at 1⁄8 of one percent, and successful bidders’ award prices will be calculated accordingly (see appendix B to this part for formulas). * * * * * Richard L. Gregg, Fiscal Assistant Secretary. [FR Doc. 2011–4455 Filed 2–28–11; 8:45 am] BILLING CODE 4810–39–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R05–OAR–2010–0850; FRL–9271–9] Approval and Promulgation of Air Quality Implementation Plans; Wisconsin; The Milwaukee-Racine and Sheboygan Areas; Determination of Attainment of the 1997 8-Hour Ozone Standard Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: EPA is making determinations under the Clean Air Act (CAA) that the Milwaukee-Racine and Sheboygan, Wisconsin areas have attained the 1997 8-hour ozone National Ambient Air Quality Standard (NAAQS). The Milwaukee-Racine area includes Milwaukee, Ozaukee, Racine, Washington, Waukesha, and Kenosha Counties. The Sheboygan area includes Sheboygan County. The determinations are based on complete, quality-assured and certified ambient air monitoring data that show that the areas have monitored attainment of the 1997 8hour ozone standard for the 2006–2008 and 2007–2009 monitoring periods. Quality assured data available for 2010 indicate that the areas continue to monitor attainment. As a result of these determinations, the requirements for these areas to submit attainment demonstrations and associated reasonably available control measures (RACM), reasonable further progress plans (RFP), contingency measures, and other State Implementation Plan (SIP) SUMMARY: E:\FR\FM\01MRR1.SGM 01MRR1

Agencies

[Federal Register Volume 76, Number 40 (Tuesday, March 1, 2011)]
[Rules and Regulations]
[Pages 11079-11080]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4455]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 356

[Docket No. BPD GSRS 11-01; Department of the Treasury Circular, Public 
Debt Series No. 1-93]


Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, 
and Bonds; Minimum Interest Rate

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends Treasury's marketable securities 
auction rules to establish a minimum interest rate of \1/8\ of one 
percent for all new Treasury note and bond issues.

DATES: Effective April 1, 2011.

ADDRESSES: This final rule is available on the Bureau of the Public 
Debt's Web site at: https://www.treasurydirect.gov. It is also available 
for public inspection and copying at the Treasury Department Library, 
Room 1428, Main Treasury Building, 1500 Pennsylvania Avenue, NW., 
Washington, DC 20220. To visit the library, call (202) 622-0990 for an 
appointment.

FOR FURTHER INFORMATION CONTACT: Lori Santamorena, Chuck Andreatta, or 
Kevin Hawkins, Department of the Treasury, Bureau of the Public Debt,

[[Page 11080]]

Government Securities Regulations Staff, (202) 504-3632.

SUPPLEMENTARY INFORMATION: The Department of the Treasury (``Treasury'' 
or ``We'') is issuing an amendment to 31 CFR 356.20(b) of the Uniform 
Offering Circular for the Sale and Issue of Marketable Book-Entry 
Treasury Bills, Notes, and Bonds \1\ (``UOC'' or ``Auction Rules'') to 
establish a minimum interest rate of \1/8\ of one percent (i.e., 0.125 
percent) for all new marketable Treasury note and bond issues. This 
amendment is not applicable to reopenings.\2\ In this rule we discuss 
how Treasury determines the interest rate for new note and bond issues, 
the reason for establishing a minimum interest rate, and the final 
amendment to the UOC.
---------------------------------------------------------------------------

    \1\ See 58 FR 412, January 5, 1993. The circular, as amended, is 
codified at 31 CFR part 356. The UOC, together with the offering 
announcement for each auction, sets out the terms and conditions for 
the sale and issuance by the Treasury to the public of marketable 
book-entry Treasury bills, notes, and bonds.
    \2\ The term reopening is defined at 31 CFR 356.2 as the auction 
of an additional amount of an outstanding security.
---------------------------------------------------------------------------

I. Determining the Interest Rate for New Treasury Note and Bond Issues

    In determining the interest rate for new note and bond issues, 
Treasury sets the interest rate at a \1/8\ of one percent increment. 
The interest rate we establish produces the price closest to, but not 
above, par that corresponds to the yield awarded to successful 
competitive bidders.\3\ The interest rate in turn is used to establish 
the amount of the semi-annual interest payment that note and bond 
investors receive.\4\
---------------------------------------------------------------------------

    \3\ For example, the two-year note auction conducted on December 
29, 2005, resulted in a yield of 4.404 percent. The interest rate 
was set at 4\3/8\ percent with a price of 99.944505. See https://www.treasurydirect.gov/instit/annceresult/press/preanre/2005/ofk1229051.pdf.
    \4\ See Appendix B to part 356--Formulas and Tables.
---------------------------------------------------------------------------

II. Establishing a Minimum Interest Rate

    In an extremely low interest rate environment, a note or bond 
auction could result in an interest rate lower than Treasury's \1/8\ of 
one percent interest rate increment. If that were to happen, under the 
current methodology the new security would be issued with a zero 
percent interest rate and would have no semi-annual interest payments. 
Treasury is amending the UOC because we believe it is preferable that 
Treasury notes and bonds pay regular, semi-annual interest payments.

III. Amendment to the Rule

    Accordingly, Treasury is amending paragraph (b) of 31 CFR 356.20 to 
state that if a Treasury note or bond auction results in a yield lower 
than 0.125 percent, the interest rate will be set at \1/8\ of one 
percent with the price adjusted accordingly (i.e., at a premium). This 
change applies to all new marketable Treasury note and bond issues: 
Treasury fixed-principal \5\ (also referred to as nominal) notes and 
bonds as well as Treasury inflation-protected notes and bonds.
---------------------------------------------------------------------------

    \5\ We use the term ``fixed-principal'' to distinguish such 
securities from ``inflation-protected'' securities. We refer to 
fixed-principal notes and fixed-principal bonds as ``notes'' and 
``bonds'' in official Treasury publications, such as auction 
announcements and auction results press releases, as well as in the 
auction system.
---------------------------------------------------------------------------

Procedural Requirements

    Executive Order 12866. This final rule is not a ``significant 
regulatory action'' pursuant to Executive Order 12866.
    Administrative Procedure Act (APA). Because this rule relates to 
public contracts and procedures for United States securities, the 
notice, public comment, and delayed effective date provisions of the 
Administrative Procedure Act are inapplicable, pursuant to 5 U.S.C. 
553(a)(2).
    Regulatory Flexibility Act. As no notice of proposed rulemaking is 
required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601, et seq.) do not apply.
    Paperwork Reduction Act. There is no new collection of information 
contained in this final rule, and, therefore, the Paperwork Reduction 
Act does not apply. The Office of Management and Budget has approved 
the collections of information already contained in 31 CFR part 356, 
under control number 1535-0112. Under the Paperwork Reduction Act, an 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a valid OMB 
control number.

List of Subjects in 31 CFR Part 356

    Bonds, Federal Reserve System, Government Securities, Securities.

    For the reasons set forth in the preamble, 31 CFR part 356 is 
amended as follows:

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)

0
1. The authority citation for part 356 continues to read as follows:

    Authority:  5 U.S.C. 301; 31 U.S.C. 3102, et seq.; 12 U.S.C. 
391.


0
2. Section 356.20 is amended by revising the introductory text of 
paragraph (b) to read as follows:


Sec.  356.20  How does the Treasury determine auction awards?

* * * * *
    (b) Determining the interest rate for new note and bond issues. We 
set the interest rate at a \1/8\ of one percent increment. If a 
Treasury note or bond auction results in a yield lower than 0.125 
percent, the interest rate will be set at \1/8\ of one percent, and 
successful bidders' award prices will be calculated accordingly (see 
appendix B to this part for formulas).
* * * * *

Richard L. Gregg,
Fiscal Assistant Secretary.
[FR Doc. 2011-4455 Filed 2-28-11; 8:45 am]
BILLING CODE 4810-39-P
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