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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ Circular No. 7 6 4 1 1 May 27, 1975 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated March 6, 1975, Due September 4, 1975 (To Be Issued June 5, 1975) $2,700,000,000 of 182-Day Bills, Dated June 5, 1975, Due December 4, 1975 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $5,500,000,000, or thereabouts, to be issued June 5, 1975, as fo llo w s: 91-day bills (to maturity date) in the amount of $2,800,000,000, or thereabouts, representing an additional amount of bills dated M arch 6, 1975, and to mature September 4, 1975 (C U S I P N o. 912793 X M 3 ), originally issued in the amount of $2,500,980,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,700,000,000, or thereabouts, to be dated June 5, 1975, and to mature December 4, 1975 (C U S I P No. 912793 Y A 8 ). The bills w ill be issued for cash and in exchange for Treasury bills maturing June 5, 1975, outstanding in the amount of $4,805,505,000, of which Government accounts and Federal Reserve Banks, tor themselves and as agents of foreign and international monetary authorities, presently hold $2,314,740,000. These accounts may exchange bills they hold for the bills now being offered at the average prices of accepted tenders. The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value) and in book-entry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving time, Monday, June 2, 1975. Tenders will not be re ceived at the Treasury Department, W ashington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in m ul tiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions and dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of N ew York their positions with respect to Government securities and borrowings thereon may submit tenders for account of customers, provided the names of the customers are set forth in such tenders. Others will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust com pany. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders for each issue for $500,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted competi tive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on June 5, 1975, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing June 5, 1975. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differ ences between the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b ) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued heueunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid for 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 for which the return is made. I reasury Department Circular No. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday. June 2, 1975, at the Securities Department of 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 T reasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con firm ation; no tenders may be submitted by telephone. Payment for 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 May 29, 1975, representing an additional amount of bills dated February 27, 1975, m aturing August 28, 1975; and 183-day bills dated May 29, 1975, m aturing November 28, 1975) are shown on the reverse side of this circular. [2 3 j A lfred H a y es, President. (o v e r ) J RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MAY 29, 1975) Range of Accepted Competitive Bids 183-Day Treasury Bills Maturing November 28, 1975 91-Day Treasury Bills Maturing August 28, 1975 Price High ................................................ Low .................................................. A v e rag e............................................ 98.698a 98.6 77 98.684 Discount Rate Investment R ate 1 5.151% 5.234% 5.206% 5.31% 5.39% 5.36% Price 97.246b 97.206 97.220 Discount Rate InvesUnent R ate 1 5.418% 5.496% 5.469% 5.66% 5.75% 5.72% b Excepting two tenders totaling $1,475,000. 1 Equivalent coupon issue yield. a Excepting one tender of $285,000. (40 percent of the amount of 183-day bills bid for at the low price was accepted.) (87 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 91-Day Treasury Bills Maturing August 28, 1975 District T otal Accepted Received Boston ........................... ............ New York .................... ............ Philadelphia .................. ............ Cleveland ...................... ............ R ichm ond...................... ............ Atlanta ........................... ............ C hicago........................... ............ St. Louis ....................... ............ Minneapolis .................. ............ Kansas City .................. ............ Dallas ............................. ............ San Francisco .............. ............ ............................ ............ $ 65,945,000 4.025,765.000 28,355,000 210,955,000 24,985,000 29,900,000 305,115,000 35,865,000 35,685.000 34,840,000 33,650,000 224.350,000 $5,055,410,000 $ 45,295,000 2,181,815,000 28,045,000 199,005,000 18,985,000 27,690,000 113,115,000 24,365,000 33.425,000 32,840,000 31,650,000 64,100,000 $2,800,330,000° Includes $346,890,000 noncompetitive tenders from the public. d Includes $121,685,000 noncompetitive tenders from the public. C 183-Day Treasury Bills Maturing November 28, 1975 Received $ 23,500,000 3,490,880,000 6,630,000 42,930,000 39,605,000 84,125,000 444,100,000 22,735.000 23,310.000 20,255,000 15,915,000 603,985,000 $4,817,970,000 Accepted $ 11.500,000 2.095,280,000 6,615,000 39,930,000 20,805,000 54,725,000 204,100,000 11,705,000 19,310,000 14,660,000 15,915,000 306,385,000 $2,800,930,000d