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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E
DALLAS, TEXAS

U N IT E D

STATES

75222

Circular No. 73-96
April 25, 1973

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Quoted below is the text of a statement issued by the Treasury
Department today concerning May refinancing plans.

TREASURY ANNOUNCES PAYDOWN ON

MAY REFINANCING

The Treasury announced today that it will auction to the public
up to $2 . 0 billion of 7 -year 6 -7 /8 $ notes and up to $650 million
of 25 -year 7° bonds to provide funds for refunding part of the $*+.3
lo
billion of notes maturing on May 15. The Treasury said that it will
use available cash to handle the balance of the maturities. Addi­
tional amounts of the notes and bonds will be allotted to Government
accounts and the Federal Reserve Banks in exchange for their holdings
of the maturing notes, which total $ 5 .3 billion.
The securities to be auctioned to the public will be:
Up to $2.0 billion of 6-7/8$ Treasury Notes of
Series A-I98 O dated May 15, 1973, due May 15,
I98 O, (CUSIP No. 912827 DL3) with interest pay­
able on May 15 and November 15, and
Up to $650 million of 7$ Treasury Bonds of 1993­
9 8 , dated May 1 5 , 1973, due May 15, 1998, callable
at the option of the United States on any interest
payment date on and after May 15, 1993, (CUSIP No.
912810 BP2) with interest payable on May 15 and
November 15.
The notes and bonds will be issued in registered and bearer
form in denominations of $1 ,0 0 0 , $ 5 ,0 0 0 , $1 0 ,0 0 0 , $10 0,0 00 and
$1 ,0 0 0 ,0 0 0 .
Tenders for the notes will be received up to 1:30 p.m.,
Eastern Daylight Saving time, Tuesday, May 1, 1973, and tenders
for the bonds will be received up to 1:30 p.m., Eastern Daylight

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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Saving time, Wednesday, May 2, 1973 , at any Federal Reserve Bank
or Branch and at the Office of the Treasurer of the United States,
Washington, D. C. 20222; provided, however, that noncompetitive
tenders will be considered timely received if they are mailed
to any such agency under a postmark no later than April 30 for
the notes and May 1 for the bonds. Each tender must be in the
amount of $1 ,0 0 0 or a multiple thereof, and must state the price
offered, if it is a competitive tender, or the term "noncompeti­
tive” , if it is a noncompetitive tender.
The price on competitive tenders for the notes must be ex­
pressed on the basis of 1 0 0 , with two decimals, e.g., 1 0 0 .0 0 .
Tenders at a price less than 9 8 .2 6 for the notes will not be
accepted. Tenders at the highest prices will be accepted to the
extent required to attain the amount offered. Successful com­
petitive bidders for the notes will be required to pay for the
notes at the price they bid. Noncompetitive bidders will be
required to pay the average price of all accepted competitive
tenders.
The price on competitive tenders for the bonds must be
expressed on the basis of 1 0 0 , with two decimals in a multiple
of .05, e.g., 100.10, 100.05, 100.00, 99*95? etc. Tenders at
the highest prices will be accepted to the extent required to
attain the amount offered. All accepted tenders for the bonds
will be awarded at the price of the lowest accepted bid.
Fractions may not be used in tenders. The notation "TENDER
FOR TREASURY NOTES" or "TENDER FOR TREASURY BONDS" should be
printed at the bottom of the envelopes in -which the tenders are
submitted.
Those submitting 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
$^0 0 ,0 0 0 or less for the notes will be accepted in full at the
average price of accepted competitive tenders and noncompetitive
tenders for $250,000 or less for the bonds will be accepted in
full at the same price as accepted competitive tenders. The
prices may be 1 0 0 .0 0 , or more or less than 1 0 0 .0 0 .
Commercial banks, which for this purpose are defined as banks
accepting demand deposits, may submit tenders for account of cus­
tomers provided the names of the customers are set forth in such
tenders. Others than commercial banks will not be permitted to
submit tenders except for their own account.

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Tenders will be received without deposit from commercial
and other banks for their own account, Federally-insured savings
and loan associations, States, political subdivisions or instru­
mentalities thereof, public pension and retirement and other
public funds, international organizations in which the United
States holds membership, foreign central banks and foreign States,
dealers who make primary markets in Government securities and
report daily to the Federal Reserve Bank of New York their posi­
tions with respect to Government securities and borrowings thereon,
Federal Reserve Banks, and Government accounts. Tenders from others
must be accompanied by payment of 5 percent of the face amount of
securities applied for.
Payment for accepted tenders must be completed on or before
Tuesday, May 15? 1973? at the Federal Reserve Bank or Branch or at
the Office of the Treasurer of the United States in cash, ^-3/^$
Treasury Notes of Series E-1973 or 7 - 3 Treasury Notes of Series
A-19735 which will be accepted at par, or other funds immediately
available to the Treasury by that date. Where full payment is not
completed in funds available by the payment date, the allotment
will be canceled and the deposit with the tender up to 5 percent
of the amount of securities allotted will be subject to forfeiture
to the United States.
The Treasury will construe as timely payment any check drawn
to the order of the Federal Reserve Bank or the Treasurer of the
United States that is received at such bank or office by Thursday,
May 10, 1973j provided the check is drawn on a bank in the Federal
Reserve District of the bank or office to which the tender is sub­
mitted. Other checks will constitute payment only if they are
fully and finally collected by the payment date Tuesday, May 15?
1973. Checks not so collected will subject the investor's deposit
to forfeiture as set forth in the preceding paragraph. A check
payable other than at a Federal Reserve Bank received on the pay­
ment date will not constitute immediately available funds on that
date.
Commercial banks are prohibited from making unsecured loans,
or loans collateralized in whole or in part by the securities bid
for, to cover the deposits required to be paid when tenders are
entered, and they will be required to make the usual certification
to that effect. Other lenders are requested to refrain from
making such loans.
All bidders are required to agree not to purchase or to sell,
or to make any agreements with respect to the purchase or sale or
other disposition of the securities bid for under this offering at
a specific rate or price, until after 1:30 p.m., Eastern Daylight

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Saving time, Tuesday, May 1, 19735 in the case of the notes, and
until after 1:30 p.m., Eastern Daylight Saving time, Wednesday,
May 2 , 1973? in the case of the bonds.

Tender forms and official circulars -will be mailed on Thursday,
April 26, 1973*

Yours very truly,
P. E. Coldwell
President