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Treasury Cuts Minimum Purchase for Securities to Broaden Market

By Viola Gienger

March 22 (Bloomberg) -- The U.S. government lowered the minimum amount for buying Treasury securities to $100 from $1,000 in a plan to broaden the market to more individuals.

Treasury bills, notes, bonds and inflation-protected securities will be available to purchase in $100 increments beginning next month, the Treasury Department said yesterday in a statement. The minimum had been set at $1,000 since August 1998.

``The new, lower minimum Treasury amount will put marketable securities within reach of more savers and investors in the United States and around the world,'' Anthony Ryan, the assistant Treasury secretary for financial markets, said in the statement.

The change, which begins with the April 7 auctions of 13- week and 26-week bills, also adds flexibility, Ryan said. All the securities outstanding also may be transferred in multiples of $100 starting April 7, the department said.

Investors can purchase Treasury securities directly at http://www.treasurydirect.gov or by opening a Legacy Treasury Direct account.

To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net.

Last Updated: March 22, 2008 13:52 EDT

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