Public Debt Announces Activity for Securities in the STRIPS Program for June 2011

The Bureau of the Public Debt announced activity for the month of June 2011, of securities within the Separate Trading of Registered Interest and Principal of Securities program (STRIPS*).

Dollar Amounts In Thousands Principal Outstanding (Eligible Securities) $7,794,632,591

Held in Unstripped Form $7,590,309,222

Held in Stripped Form $204,323,369

Reconstituted in June $36,445,699

The accompanying table gives a breakdown of STRIPS activity by individual loan description. The balances in this table are subject to audit and subsequent revision. These monthly figures are included in Table V of the Monthly Statement of The Public Debt, entitled "Holdings of Treasury Securities in Stripped Form."

The STRIPS Table along with the new Monthly Statement of the Public Debt is available on Public Debt's Internet site at: www.treasurydirect.gov. A wide range of information about the public debt and Treasury securities is also available at the site.

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*About STRIPS:

•STRIPS is the acronym for Separate Trading of Registered Interest and Principal of Securities.

•STRIPS let investors hold and trade the individual interest and principal components of eligible Treasury notes and bonds as separate securities.

•STRIPS are popular with investors who want to receive a known payment on a specific future date.

•STRIPS are called “zero-coupon” securities. The only time an investor receives a payment from STRIPS is at maturity.

•STRIPS are not issued or sold directly to investors. STRIPS can be purchased and held only through financial institutions and government securities brokers and dealers.

When a Treasury fixed-principal note or bond or a Treasury inflation-protected security (TIPS) is stripped through the commercial book-entry system each interest payment and the principal payment becomes a separate zero-coupon security. Each component has its own identifying number and can be held or traded separately.

For example, a Treasury note with 10 years remaining to maturity consists of a single principal payment, due at maturity, and 20 interest payments, one every six months over a 10 year duration. When this note is converted to STRIPS form, each of the 20 interest payments and the principal payment becomes a separate security.