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F E D E R A L R E S E R V E BA N K O F N EW Y O R K

Fiscal Agent of the United States

1977
[ September 28,8 1 8 6 1J
OFFERING OF TWO SERIES OF TREASURY BILLS
$2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated July 7, 1977, Due January 5, 1978
(To Be Issued October 6, 1977)
$3,500,000,000 of 182-Day Bills, Dated October 6, 1977, Due April 6, 1978
Circular No.

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 yesterday:

The Department of the Treasury, by this public notice, invites
tenders for two series of Treasury bills totaling approximately
$5,800 million, to be issued October 6, 1977. This offering will
not provide new cash for the Treasury as the maturing bills are
outstanding in the amount of $5,806 million. The two series offered
are as follows:
91-day bills (to maturity date) for approximately $2,300
million, representing an additional amount of bills dated
July 7, 1977, and to mature January 5, 1978 (C U SIP
No. 912793 M94), originally issued in the amount of
$3,305 million, the additional and original bills to be
freely interchangeable.
182-day bills for approximately $3,500 million to be dated
October 6, 1977, and to mature April 6, 1978 (C U SIP
No. 912793 P67).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing October 6, 1977. Federal Reserve Banks,
for themselves and as agents of foreign and international monetary
authorities, presently hold $2,871 million of the maturing bills.
These accounts may exchange bills they hold for the bills now
being offered at the weighted average prices of accepted competi­
tive tenders.
The bills will be issued on a discount basis under competitive and
noncompetitive bidding, and at maturity their par amount will be
payable without interest. Except for definitive bills in the $100,000
denomination, which will be available only to investors who
are able to show that they are required by law or regulation to
hold securities in physical form, both series of bills will be issued
entirely in book-entry form in a minimum amount of $10,000 and
in any higher $5,000 multiple, on the records either of the Federal
Reserve Banks and Branches, or of the Department of the Treasury.
Tenders will be received at Federal Reserve Banks and Branches
and at the Bureau of the Public Debt, Washington, D. C. 20226,
up to 1 :30 p.m., Eastern Daylight Saving time, Monday, October
3, 1977. Form PD 4632-2 (for 26-week series) or Form PD 4632-3
(for 13-week series) should be used to submit tenders for bills to
be maintained on the book-entry records of the Department of the
Treasury.
Each tender must be for a minimum of $10,000. Tenders over
$10,000 must be in multiples 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.
Banking institutions and dealers who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of New York their positions in and borrowings on such
securities may submit tenders for account of customers, if the
names of the customers and the amount for each customer are
furnished. Others are only permitted to submit tenders for their
own account.

Payment for the full par amount of the bills applied for must
accompany all tenders submitted for bills to be maintained on the
book-entry records of the Department of the Treasury. A cash
adjustment will be made on all accepted tenders for the difference
between the par payment submitted and the actual issue price as
determined in the auction.
No deposit need accompany tenders from incorporated banks
and trust companies and from responsible and recognized dealers
in investment securities for bills to be maintained on the book-entry
records of Federal Reserve Banks and Branches, or for bills issued
in bearer form, where authorized. A deposit of 2 percent of the par
amount of the bills applied for must accompany tenders for such
bills from others, unless an express guaranty of payment by an
incorporated bank or trust company accompanies the tenders.
Public announcement will be made by the Department of the
Treasury of the amount and price range of accepted bids. Competi­
tive bidders will be advised of the acceptance or rejection of their
tenders. The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and the
Secretary’s action 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
weighted average price (in three decimals) of accepted competitive
bids for the respective issues.
Settlement for accepted tenders for bills to be maintained on the
book-entry records of Federal Reserve Banks and Branches, and
bills issued in bearer form must be made or completed at the Fed­
eral Reserve Bank or Branch or at the Bureau of the Public Debt
on October 6, 1977, in cash or other immediately available funds
or in Treasury bills maturing October 6, 1977. Cash adjustments
will be made for differences between the par value of the 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 these bills are sold
is considered to accrue when the bills are sold, redeemed or other­
wise disposed of, and the bills are excluded from consideration as
capital assets. Accordingly, the owner of these bills (other than
life insurance companies) must include in his or her Federal incofne tax return, as ordinary gain or loss, the difference between
the price paid for the bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the
return is made.
Department of the Treasury Circulars, No. 418 (current revi­
sion), Public Debt Series—Nos. 26-76 and 27-76, and this notice,
prescribe the terms of these Treasury bills and govern the condi­
tions of their issue. Copies of the circulars and tender forms may
be obtained from any Federal Reserve Bank or Branch, or from
the Bureau of the Public Debt.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, October 3,
1977, 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.” Forms for submitting tenders directly to the Treasury are available from the Government
Bond Division of this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to written confir­
mation; no tenders may be submitted by telephone. P a y m e n t fo r T r e a s u r y b ills ca n n o t be m a d e b y c r e d it th ro u g h
th e T r e a s u r y T a x a n d L o a n A c c o u n t. S e ttle m e n t m u s t be m a d e in cash o r o th e r im m e d ia te ly a va ila b le fu n d s o r in
m a tu rin g T r e a s u r y b ills.

Results of the last weekly offering of Treasury bills (91-day bills to be issued September 29, 1977, representing an
additional amount of bills dated June 30, 1977, maturing December 29, 1977; and 182-day bills dated September 29, 1977,
maturing March 30, 1978) are shown on the reverse side of this circular.
[

40 ]




Paul A. V olcker,

President.
( over)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED SEPTEMBER 29, 1977)
Range of Accepted Competitive Bids
9 1 - D a y T r e a s u r y B ills
M a tu r in g D e c e m b e r 2 9 , 1 9 7 7

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

P rice

98.496
98.486
98.488

D iscount
R ate

5.950%
5.989%
5.982%

Investm en t
R a te 1

6.12%
6.17%
6.16%

1 8 2 - D a y T r e a s u r y B ills
M a tu r in g M a rc h 3 0 , 1 9 7 8

P rice

96.890
96.868
96.873

D iscount
R a te

6.152%
6.195%
6.185%

Investm en t
R a te 1

6.44%
6.48%
6.47%

1 Equivalent coupon-issue yield.

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

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

Total Tenders Received and Accepted
9 1 - D a y T r e a s u r y B ills
M a tu r in g D e c e m b e r 2 9 , 1 9 7 7

F.R. District (and U S. Treasury)

Received

Boston ...................................... $ 18,495,000
New York ................................ 3,674,025,000
18,140,000
Philadelphia ..............................
31,810,000
Cleveland ..................................
16,660,000
Richmond..................................
44,830,000
Atlanta ......................................
494,665,000
Chicago......................................
61,245,000
St. Louis ..................................
7,325,000
Minneapolis ..............................
Kansas City..............................
35,450,000
Dallas ........................................
12,125,000
San Francisco ..........................
230,520,000
U.S. Treasury ..........................
30,000
T
.......................................
$4,645,320,000
otals

Accepted

$ 16,495,000
1,906,040,000
17,490,000
30,515,000
16,660,000
28,125,000
54,425,000
36,555,000
7,325,000
26,510,000
12,125,000
48,080,000
30,000
$2,200,375,000 a

a Includes $330,495,000 noncompetitive tenders from the public.
b Includes $162,000,000 noncompetitive tenders from the public.




1 8 2 - D a y T r e a s u r y B ills
M a tu r in g M a rc h 3 0 , 1 9 7 8

Received

$ 23,515,000
4,712,725,000
9,665,000
24,745,000
15,075,000
66,060,000
590,705,000
40,560,000
5,295,000
20,100,000
3,330,000
310,775,000
200,000
$5,822,750,000

Accepted

$ 16,515,000
2,898,725,000
9,665,000
9,745,000
9,575,000
44,060,000
158,705,000
18,415,000
5,295,000
20,100,000
3,330,000
105,775,000
200,000
$3,300,105,000 b

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