Treasury Announces Suspension of Sales of State and Local Government Series Securities

The U.S. Department of the Treasury’s Bureau of the Fiscal Service (the “Treasury”) announced on February 22, 2019 the suspension of sales of State and Local Government Series (SLGS) nonmarketable Treasury securities, effective 12:00 noon Eastern Time, March 1, 2019.

A SLGS suspension, also known as closing the SLGS window, refers to when the Treasury no longer accepts new subscriptions for SLGS securities. The Treasury will reopen the SLGS window when Congress enacts, and the President signs, legislation suspending or raising the debt limit.

Treasury’s past practice has been to honor all SLGS subscriptions submitted by the specified time and date of the SLGS suspension. Unless otherwise prohibited for another reasons, SLGS maturities, interest payments, and early redemptions will be processed as normal during the SLGS suspension. Open-market Treasury securities, which are purchased after soliciting bids from banks and other financial institutions are still an option.

This blog was written by Luisella McBride at Miles & Stockbridge.

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