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

Fiscal Agent of the United States

OFFERING OF TWO SERIES OF TREASURY BILLS

8 2
November
[Circular No.23, 21977ITJ

$2 ,300,000,000 of 91-Day Bills, Additional Amount, Series Dated September 1, 1977, Due March 2, 1978
(To Be Issued December 1, 1977)
$3,500,000,000 of 182-Day Bills, Dated December 1, 1977, Due June 1, 1978
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 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 December 1, 1977. This offering will
provide $400 million of new cash for the Treasury as the maturing
bills are outstanding in the amount of $5,402 million. The two series
offered are as fo llo w s:

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.

91-day bills (to maturity date) for approximately $2,300
million, representing an additional amount of bills dated
September 1, 1977, and to mature March 2, 1978
( C U S i P N o . 912793 N 9 3 ) , originally issued in the
amount of $3,304 million, the additional and original
bills to be freely interchangeable.

N o 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.

182-day bills for approximately $3,500 million to be dated
December 1, 1977, and to mature June 1, 1978 ( C U S I P
N o . 912793 Q 6 6 ).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing December 1, 1977. Federal Reserve Banks,
for themselves and as agents of foreign and international monetary
authorities, presently hold $2,536 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 aDie 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 Standard time, Monday, November 28,
1977. Form P D 4632-2 (for 26-week series) or Form P D 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 N ew Y ork 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.

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 December 1, 1977, in cash or other immediately available funds
or in Treasury bills maturing December 1, 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 4 5 4 (b ) and 12 21 (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 in­
come 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 N o. 418 (current revi­
sion) and Public Debt Series— N os. 26-76 and 27-76, and this
notice prescribe the terms of these Treasury bills and govern the
conditions 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 Standard time, Monday, November 28,
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 ym e n t for T reasu ry hills cannot be m ade by credit through

the T reasu ry T a x and L oan A ccou nt. S ettlem en t m ust be m ade in cash or other im m ediately available fun ds or in
m atu rin g T reasu ry bills.

Results of the last weekly offering of Treasury bills (90-day bills to be issued November 25, 1977, representing an
additional amount of bills dated August 25, 1977, maturing February 23, 1978; and 181-day bills dated November 25,
1977, maturing May 25, 1978) are shown on the reverse side of this circular.
P

[481



aul

A. V

olcker,

President.
( over)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED NOVEMBER 25, 1977)
Range of Accepted Competitive Bids
90-Day Treasury Bills
Maturing February 23,1978

Price
98.483
98.477
98.479

High...
Low....
Average
1 Equivalent

Discount
Rate

181-Day Treasury Bills
Maturing May 25,1978

Investment
Rate 1

Price

Discount
Rate

Investment
R ate1

6.25%
6.27%
6.26%

96.799
96.786
96.790

6.367%
6.392%
6.385%

6.67%
6.70%
6.69%

6.068%
6.092%
6.084%

coupon-issue yield.

(26 percent of the amount of 90-day bills
bid for at the low price was accepted.)

(6 percent of the amount of 181-day bills
bid for at the low price was accepted.)

Total Tenders Received and Accepted
90-Day Treasury Bills
Maturing February 23,1978

Received

F.R. District (and U S . Treasury)
Boston.......................................
New Y o r k .................................
Philadelphia..............................
Cleveland..................................
Richmond.................................
Atlanta......................................
Chicago.....................................
St. L ou is...................................
Minneapolis..............................
Kansas C ity ..............................
Dallas........................................
San Francisco...........................

$

19,235,000
3,691,705,000
27,265,000
54,455,000
27,245,000
49,600,000
523,815,000
41,315,000
23,330,000
24,520,000
48,760,000
276,625,000

U.S. Treasury..........................

$4,808,095,000

$

Accepted

$ 26,005,000
4,747,150,000
10,420,000
81,820,000
48,075,000
13,575,000
476,150,000
48,175,000
20,740,000
28,420,000
15,260,000
543,645,000

$
7,005,000
2,843,950,000
10,420,000
36,820,000
37,075,000
13,075,000
186,150,000
20,175,000
14,740,000
27,920,000
9,260,000
295,145,000

225,000

195,000

195,000

$2,301,130,000a

a Includes $346,960,000 noncompetitive tenders from the public.
b Includes $163,635,000 noncompetitive tenders from the public.




Received

15,235,000
1,907,815,000
27,265,000
34,040,000
20,245,000
35,030,000
99,940,000
19,475,000
18,110,000
24,520,000
44,540,000
54,690,000

225,000

T otals ...............................

Accepted

181-Day Treasury Bills
Maturing May 23, 1978

$6,059,630,000

$3,501,930,000b