Circular
Central Banks Announce Schedules for Term and Forward Auctions of U.S. Dollar Liquidity for Fourth Quarter
October 7, 2008
Circular No. 11999

Central banks have announced coordinated actions to expand the provision of U.S. dollar liquidity. Today, the central banks are announcing schedules for term and forward auctions of U.S. dollar liquidity conducted during the fourth quarter of this year. These schedules include dates of any 28-day and 84-day term auctions and two preliminary dates for any forward auctions of U.S. dollar liquidity over the year-end. Scheduling of the forward auctions is still tentative and may be adjusted in response to financial market conditions.

Federal Reserve Actions
As previously announced, the Federal Reserve will conduct an auction of 28-day credit through its Term Auction Facility (TAF) in October and another in November. A third auction of 28-day credit is now scheduled for December. These auction dates are October 20, November 17 and December 15, and $150 billion will be offered in each auction.

Also, the Federal Reserve will conduct two auctions of three-month credit through the TAF in October and November. Two more auctions of three-month funding are now scheduled for December. These auction dates are October 6, November 3, December 1 and December 29, and $150 billion will be offered in each auction.

Two forward TAF auctions, designed to reassure market participants that term funding will be available over year-end, are now tentatively scheduled for November 10 and November 24. Settlement would occur on December 22 and December 23, respectively, and the funding would be over corresponding terms of 17 days and 13 days, to bridge the turn of the year. Each forward auction will offer funding of $150 billion.

See the press release for details.

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