Treasury to Sell Short-Term Notes

The U.S. Treasury said it will sell $15.5 billion in two-year notes and $11.5 billion in five-year notes, and both issues will for the first time be eligible for its STRIPS program. In STRIPS--the Separate Trading of Registered Interest and Principal of Securities--coupons are separated from notes or bonds and themselves become a security. The remaining face-value bond becomes a separate security called a zero-coupon bond. The short-term notes will be issued Sept. 30; the two-year notes (in $5,000 minimum denominations) will mature Sept. 30, 1999, and the five-year notes ($1,000 minimum) will mature Sept. 30, 2002.