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federal Re s e r v e B a n k o f D a l l a s F IS C A L A G E N T O F T H E U N IT E D S T A T E S DALLAS. TEXAS 75222 Circular No. 70-262 November 2, 1970 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued by the Treasury Department in regard to current financing: BIDDING AND OTHER PROCEDURES FOR TREASURY'S NOTE AUCTION The Treasury today said that bidding and other procedures in the Treasury's new $2 billion cash financing will very closely follow the standard procedures used in regular Treasury bill auctions. The new securities, which will carry a 6-3/^$ coupon and have an 18-month maturity, will be issued on November l6, 1970, and mature on Jfey 15, 1972. Subscription forms will be available in the usual way through Federal Reserve Banks and Branches. They will also be available at the Office of the Treasurer of the United States, Washington, D. C. 20220. Some banks may wish to use the services of correspon dents. Books will close at 1:30 p.m., EST on Thurs day, November 5, 1970, and tenders received after that time will not be accepted. In the case of competitive bids, prices must be expressed on the bidding form on the basis of 100 and two decimals, e.g., 100.25. The 6-3/^$ coupon on this issue is somewhat higher than market yields pre vailing for issues with comparable maturities already in the market. To avoid tax problems which would result from discounts lower than 99 *76$ of par, in no event will the Treasury accept bids below that price. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Bidders for smaller amounts (i.e., up to $200,000) -willing to accept the average of prices bid in the auction can do so by appropriately indicating in the space provided on the tender form that their tenders are noncompetitive. These noncompetitive tenders -will be a-warded in full at the average of the accepted competitive bids. No deposits from commercial banks certain other classes ing individuals, must will be required with tenders for their own account or from of subscribers. Others, includ make a 5$ deposit with their bid. Qualified depositories will be allowed to pay 50$ of the subscription price by crediting Treas ury Tax and Loan Accounts. Complete details with regard to the offering will be found in the official offering circular. In accordance with the above announcement, tenders will be received at this Bank and its branches at El Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard Time, Thursday, November 1970. Yours very truly, P. E. Coldwell President
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