Treasury Direct Investors to Buy by Phone October 5th

FOR IMMEDIATE RELEASE

October 2, 1998

TreasuryDirect customers will be able to purchase Treasury bills, notes and bonds using a touch-tone phone on Monday, October 5, 1998. Beginning with the regular weekly Treasury bill auction that day, investors will be able to use a touch-tone phone to Buy Direct. To use this new service, all current TreasuryDirect customers need do is dial 1-800-943-6864 and follow a simple interactive menu that will tell them which securities are available and instruct them on how to complete the transaction.

“We expect investors to respond enthusiastically to the convenience of investing by phone. Now, with just a two-minute, toll-free phone call our customers can add a bill, note or bond to their TreasuryDirect account,” said Van Zeck, Commissioner of the Public Debt.

Buy Direct services will be available from 8:00 a.m. to 8:00 p.m., Eastern time, Monday through Friday except on Federal holidays.

The new service is for investors who submit non-competitive tenders only. Most TreasuryDirect customers use non-competitive bidding to buy bills, notes and bonds. On auction days the regular Noon, Eastern time deadline for non-competitive tenders applies to telephone purchases. Investors pay for their securities by authorizing Public Debt to charge their bank account of record for the purchase price. Investors will receive a confirmation number during the call and the Bureau will charge their bank account of record on the day the security is issued.

The new telephone service joins the already popular Internet Buy Direct service that went live on September 16, 1998. TreasuryDirect customers purchased more than $9 million in bills and notes in the first two weeks Internet sales were available.

TreasuryDirect is Treasury's direct-hold, book-entry service. It allows investors to buy Treasury bills, notes, and bonds directly from the government at original issue and hold them in accounts with the Bureau of the Public Debt.

It's easy to open a TreasuryDirect account. All an investor need do is fill out a New Account Request (PD F 5182) and send it to the nearest Federal Reserve Bank or Branch. In about two weeks, a statement with the account number is sent to the investor. Forms are available on TreasuryDirect's website at: www.treasurydirect.gov, or from Federal Reserve Banks or Branches.