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FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent of the United States No. 7 1 0 6 [ Circular February 27, 1973 T -1 OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated December 7, 1972, Due June 7, 1973 (To Be Issued March 8, 1973) $1,800,000,000 of 182-Day Bills, Dated March 8, 1973, Due September 6, 1973 T o A ll In corporated Banks and T rust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T h e Treasury Department, by this public notice, invites tenders fo r tw o series o f Treasury bills to the aggregate amount o f $4,200,000,000, or thereabouts, fo r cash and in exchange fo r T rea sury bills m aturing M arch 8, 1973, in the amount o f $4,205,515,000, as fo llo w s : 91-day bills (to maturity date) to be issued M arch 8, 1973, in the amount o f $2,400,000,000, or thereabouts, representing an additional amount o f bills dated D ecem ber 7, 1972, and to mature June 7, 1973 (C U S I P N o. 912793 Q W 9 ) , originally issued in the amount o f $1,896,515,000, the additional and original bills to be fre e ly interchangeable. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated M arch 8, 1973, and to mature September 6, 1973 (C U S I P N o. 912793 R T 5 ) . T h e bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their fa ce amount w ill be payable without interest. T h ey w ill be issued in bearer form only, and in denominations o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity va lu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M onday, M arch 5, 1973. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be fo r a minimum o f $10,000. Tenders over $10,000 must be in mul tiples o f $5,000. In the case o f com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders fo r account o f customers, provided the names o f the customers are set forth in such tenders. Others than banking institutions w ill not be per mitted to submit tenders except fo r their ow n account. Tenders w ill be received w ithout deposit from incorporated banks and trust companies and fro m responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank o r trust company. Immediately a fter the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. O nly those submitting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole o r in part, and his action in any such respect shall be final. Subject to these reserva tions, noncom petitive tenders f o r each issue fo r $200,000 or less w ithout stated price fro m any one bidder w ill be accepted in full at the average price (in three decim als) o f accepted competitive bids f o r the respective issues. Settlement fo r accepted tenders in accordance w ith the bids must be made or completed at the Federal Reserve Bank on M arch 8, 1973, in cash or other immediately available funds o r in a like face amount o f Treasury bills maturing M arch 8, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustments w ill be made fo r differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. Under Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue Code o f 1954, the amount o f discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed o f, and the bills are excluded from considera tion as capital assets. A ccordin gly, the owner o f Treasury bills (oth er than life insurance com panies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid fo r the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year f o r which the return is made. Treasury Department Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay be ob tained fro m any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, March 5, 1973, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked “ Tender for Treasury Bills (W eekly).” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued March 1, 1973, representing an additional amount o f bills dated May 31, 1972, maturing May 31, 1973: and 182-day bills dated March 1, 1973, ma turing August 30, 1973) are shown on the reverse side of this circular. A lfred H a y e s, President. ( over) RESULTS OF L A S T W E E K L Y O FFE R IN G OF T R E A S U R Y BILLS (T W O SERIES TO BE ISSUED M A R C H 1, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing May 31,1973 182-Day Treasury Bills Maturing August 30,1973 P r ice A p p ro x . equiv. annual rate P rice A p p ro x . equiv. annual rate High .............................. ............ 98.545® 5.756% 96.970b 5.993% L o w ................................ ............ 98.522 5.847% 96.927 6.078% A v e ra g e .......................... ............ 98.531 5.811 96.944 6.045%! 1 a E xcepting one tender o f $695,000. b E xcepting tw o tenders totaling $1,510,000. 1 These rates are on a bank discount basis. T h e equivalent coupon issue yields are 5.98% fo r the 91-day bills, and 6.32% fo r the 182-day bills. (20 percent of the amount of 91-day bills bid for at the low price was accepted.) (63 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing May 31,1973 A pplied f o r D istrict Boston .......................... ........ $ 28,625,000 182-Day Treasury Bills Maturing August 30,1973 A ccep ted $ 12,625,000 A pplied f o r $ 44,160,000 A ccep ted $ 20,160,000 New York .................... ........ 2,907,705,000 2,085,205,000 2,589,080,000 1,570,980,000 Philadelphia.................. ........ 40,635,000 26,635,000 7,390,000 7,390,000 Cleveland ...................... ........ 26,815,000 26,815,000 13,875,000 8,875,000 R ich m on d...................... ........ 17,900,000 11,900,000 16,070,000 10,070,000 Atlanta .......................... ........ 18,185,000 17,385,000 11,865,000 11,865,000 C h ica go.......................... ........ 189,525,000 88,525,000 197,590,000 96,480,000 St. L o u is ........................ ........ 42,270,000 29,270,000 30,805,000 18,805,000 Minneapolis .................. ........ 28,765,000 18,405,000 27,745,000 15,545,000 Kansas C i t y .................. ........ 42,450,000 33,100,000 21,265,000 16,115,000 Dallas ............................ ........ 38,760,000 13,960,000 31,125,000 7,125,000 San F ra n cisco.............. 89,200,000 36,400,000 95,635,000 16,635,000 T otal ...................... ........ $3,470,835,000 $2,400,225,000c $3,086,605,000 c Includes $182,655,000 noncompetitive tenders accepted at the average price o f 98.531. d Includes $92,265,000 noncompetitive tenders accepted at the average price o f 96.944. $1,800,045,OOOd
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