§ 356.2 What definitions do I need to know to understand this part?
13-week bill means a Treasury bill where the security description is “13-Week Bill” as referenced on the Treasury auction announcement.
Accrued interest means an amount that bidders must pay to us for interest income as part of the settlement amount. Accrued interest compensates us up front for interest that bidders will be paid but did not earn because it is attributable to a period of time prior to the issue date. (See appendix B, section I, paragraph D of this part for additional explanation and examples.)
Adjusted value means, for an interest component stripped from an inflation-protected security, an amount derived by:
(1) Multiplying the semiannual interest rate by the par amount, and then
(2) Multiplying this value by: 100 divided by the Reference CPI of the original issue date (or dated date, when the dated date is different from the original issue date). (See appendix B, section V of this part for an example of how to calculate the adjusted value.)
Auction means a bidding process by which we sell marketable Treasury securities to the public.
Autocharge agreement means an agreement in a format acceptable to Treasury between a submitter or clearing corporation and a depository institution that authorizes us to:
(1) Deliver awarded securities to the book-entry securities account of a designated depository institution in the commercial book-entry system, and
(2) Charge a funds account of a designated depository institution for the settlement amount of the securities.
Bid means an offer to purchase a stated par amount of securities, either competitively or noncompetitively, in an auction.
Bid-to-cover ratio means the total par amount of securities bid for in an auction divided by the total par amount of securities awarded. It excludes bids by, and awards to, the Federal Reserve for its own account.
Bidder, as further defined in appendix A, means a person or an entity that offers to purchase Treasury securities in an auction either directly or through a depository institution or dealer. We may consider two or more persons or entities to be one bidder based on their relationship or their actions in participating in an auction. We consider a controlled account to be a bidder when an investment adviser bids in the name of the controlled account (See § 356.15.).
Bidder Identification Number means a number we assign to each institutional submitter and to certain other bidders. We assign such numbers either to identify certain bidders or to grant separate bidder status to different parts of the same corporate or partnership structure.
Book-entry security means a security that is issued or maintained as an accounting entry or electronic record. (See § 356.4.)
Business day means any day on which the Federal Reserve Banks are open for business.
Call means the redemption of a security prior to maturity under the terms specified in its auction announcement.