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FED ER AL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
r Circular No. 7 6 5 0 T

L

June 10, 1975

J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,200,000,000 of 91-Day Bills, Additional Amount, Series Dated March 20,1975, Due September 18, 1975
(To Be Issued June 19, 1975)
$2,300,000,000 of 182-Day Bills, Dated June 19, 1975, Due December 18, 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

Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Monday, June 16, 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 mul­
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.

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 w ill 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. O nly those submitting
competitive tenders w ill 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 w ill 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 19, 1975, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing June 19, 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 4 5 4 (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 com panies) 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.

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

Treasury Department Circular N o. 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.

The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$4,500,000,000, or thereabouts, to be issued June 19, 1975, as
fo llo w s:
91-day bills (to maturity date) in the amount of
$2,200,000,000, or thereabouts, representing an additional
amount of bills dated March 20, 1975, and to mature
September 18, 1975 (C U S IP N o. 912793 X P 6 ), origi­
nally issued in the amount of $2,501,550,000, the ad­
ditional and original bills to be freely interchangeable.
182-day bills, for $2,300,000,000, or thereabouts, to be dated
June 19, 1975, and to mature December 18, 1975
(C U S I P N o. 912793 Y C 4).
The bills will be issued for cash and in exchange for Treasury
bills maturing June 19, 1975, outstanding in the amount of
$6,005,595,000, of which Government accounts and Federal Reserve
Banks, for them selves and as agents of foreign and international
monetary authorities, presently hold $3,189,810,000. 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.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 16,
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 Treasury Bills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written con­
firmation; 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 June 12, 1975, representing
an additional amount of bills dated March 13, 1975, m aturing September 11, 1975; and 182-day bills dated June 12,
1975, maturing December 11, 1975) are shown on the reverse side of this circular.
[25]



A lfred H ay es ,

President.
( over )

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JUNE 12, 1975)

Range of Accepted Competitive Bids
9 i -Day Treasury Bills
Maturing September i i , 1975
Price

High .................................................
Low ...................................................
A v e rag e............................................

98.73 l a
98.714
98.716

Discount
Rate

Investment
R ate 1

5.020%
5.087%
5.080%

5.17%
5.24%
5.23%

182-Day Treasury Bills
Maturing December 11, 1975
Price

97.356b
97.320
97.329

1 Equivalent coupon issue yield.
a Excepting one tender of $140,000.

Discount
Rate

Investment
R ate 1

5.230%
5.301%
5.283%

5.46%
5.54%)
5.52%

b Excepting one tender of $10,000,000.

(77 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(100 percent of the amount of 182-day bills
bid for at the low price was accepted.)

Total Tenders Received and Accepted (By Federal Reserve District)
91-Day Treasury Bills
Maturing September 11, 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 .............. ............
............................ ............

$

42,165,000
3,555,755,000
32,795,000
97,995,000
28,350,000
32,725,000
301,890,000
44,720,000
16,880,000
40,415,000
43,500,000
339,310,000

$4,576,500,000

$

30,065,000
2,060,315,000
32,545,000
47,295,000
27,850,000
28,755,000
124,200,000
29,220,000
8,880,000
36,230,000
18,300,000
160,705,000

$2,604,360,000

c Includes $454,015,000 noncompetitive tenders from the public,
d Includes $163,800,000 noncompetitive tenders from the public.




182-Day Treasury Bills
Maturing December 11, 1975
Received

$

31,450,000
3,431,235,000
5,190,000
96,050,000
25,805,000
61,820,000
182,910,000
64,265,000
13,265,000
21,645,000
13,090,000
319,870,000

$4,266,595,000

Accepted

$

8,450,000
2,149,235,000
5,190,000
45,550,000
22,805,000
14,820,000
74,410,000
18,965,000
3,265,000
17,835,000
8,090,000
231,870,000

$2,600,485,000d