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FED ER AL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States

r Circular No. 7 6 6 8 * 1
L
J u ly 15, 197S
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated April 24, 1975, Due October 23, 1975
(To Be Issued July 24, 1975)
$2,900,000,000 of 182-Day Bills, Dated July 24, 1975, Due January 22, 1976
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

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 tw o series of Treasury bills to the aggregate amount of
$5,700,000,000, or thereabouts, to be issued July 24, 1975, as fo llo w s:

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.

91-day bills (to maturity date) in the amount of
$2,800,000,000, or thereabouts, representing an additional
amount of bills dated April 24, 1975, and to mature
October 23, 1975 (C U S I P No. 912793 X U 5 ), originally
issued in the amount of $2,700,490,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $2,900,000,000, or thereabouts, to be dated
July 24, 1975, and to mature January 22, 1976 (C U S IP
N o. 912793 Y Q 3 ).

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 July 24, 1975, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing July 24, 1975; provided, however, that settlement for
tenders submitted to the Federal Reserve Bank Branch in Salt
Lake City must be completed at that Branch on July 25, 1975, and
must include one day’s accrued interest if settlement is made with
other than Treasury bills maturing July 24, 1975. Cash and e x ­
change tenders will receive equal treatment. Cash adjustments will
be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.

The bills will be issued for cash and in exchange for Treasury
bills maturing July 24, 1975, outstanding in the amount of
$4,903,630,000, of which Government accounts and Federal Reserve
Banks, for them selves and as agents of foreign and international
monetary authorities, presently hold $2,879,530,000. 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 w ill 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.
T hey w ill 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, July 21, 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, w ith 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 w ill 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 Y ork their positions with respect to Government
securities and borrowings thereon m ay 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

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 companies) issued hereunder 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.
Treasury Department Circular
this notice prescribe the terms of
the conditions of their issue. Copies
from any Federal Reserve Bank or

No. 418 (current revision) and
the Treasury bills and govern
of the circular may be obtained
Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 21,
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 July 17, 1975, representing an ad­
ditional amount of bills dated April 17, 1975, maturing October 16, 1975; and 182-day bills dated July 17, 1975, matur­
ing January 15, 1976) are shown on the reverse side of this circular.
r
1
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.

A

lfred

H

ayes,

President.
(o v e r )

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JULY 17, 1975)

Range of Accepted Competitive Bids
91 -Day Treasury Bills
Maturing October 16 , 1975
Price

High ........................... ................
Low ........................... ................
Average ..................... ................

98.483
98.468
98.472

Discount
Rate

Investment
R ate 1

6 .001 %

6 .20 %

6.061%
6.045%

6.26%
6.24%

182-Day Treasury Bills
Maturing January 15, 1976
Price

Discount
Rate

Investment
Rate 1

96.809
96.786
96.793

6.312%
6.357%
6.344%

6 .68 %
6 .66 %

6.63%

1 E q u iv a le n t coupon issu e yield.

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

(6 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 October 16, 1975

182-Day Treasury Bills
Maturing January 15 , 1976

Received

Accepted

Boston ................... . ...........
New York .................. ...........
Philadelphia ................ ...........
Cleveland .................... ...........
Richmond .................. ...........
Atlanta ........................ ...........
Chicago ...................... ...........
St. Louis .................... ...........
Minneapolis ................ ...........
Kansas City ................ ...........
Dallas ........................ ...........
San Francisco ............. ...........

$ 56,220,000
4,080,150,000
35,185,000
111,925,000
74,955,000
87,560,000
321,830,000
63,010,000
38,610,000
66,290,000
134,390.000
379,110,000

$ 38,635,000
2,055,755,000
33,585,000
69,630,000
58,025,000
77,665,000
91,565,000
44,610,000
11,010,000
60,220,000
116,890,000
143,960,000

$ 32,980,000
4,960,130,000
58,910,000
150,485,000
108,255,000
74,980,000
442,960,000
56,835,000
26,625,000
41,930,000
33,475,000
568,015,000

$ 16,980,000
2,109,430,000
23,910,000
39,420,000
81,755,000
43,770,000
143,995,000
28,835,000
4,125,000
37,735,000
23,405,000
347,215,000

......................... ...........

$5,449,235,000

$2,801,550,000a

$6,555,580,000

$2,900,575,000b

District

T

o tal

a Includes $625,220,000 noncompetitive tenders from the public.
t> Includes $319,505,000 noncompetitive tenders from the public.




Received

Accepted


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102