govtwork / faq / Application of the term ''yield'' to Treasuries

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DEPARTMENT OF THE TREASURY
BUREAU OF THE PUBLIC DEBT
PARKERSBURG, WV 26106-1328

FEB 28, 1997

Joel R. Anderson

Dear Mr. Anderson:

Thank you for your letter dated January 18, 1997, in which
you expressed concerns regarding the Department of the
Treasury's application of the term "yield" with respect to
marketable Treasury securities. Your suggestions for
restructuring yield computations were shared with other
Treasury offices and are being taken under consideration.

With respect to your comments that further disclosure is
advisable on Treasury's financial nomenclature and
calculation methodologies, we are pleased to share with you
two imminent developments. During 1997, we will be revising
our PD P 009, Buying Treasury Securities, and your comments
will be considered. Also, we are introducing a new format
for the TREASURY DIRECT Statement of Account in March 1997.
While changes involving the display of calculated yields
will not appear at this time, that subject is already on the
agenda for the first round of enhancements to occur.

I very much appreciate that you have taken the time to share
your concerns. Please contact me again if I can be of
further assistance.

Sincerely,


Richard H. Koch, Director
Division of Customer Service