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FEDERAL RESERVE BANK OF MEW YORK Fiscal Agent o f the United States Circular No. 10,062 _ July 25, 1986 _ Offering of $9,500,000,000 of 364-EDay Treasury Bills Dated August 7,1986 Due August 6,1987 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: The following is the text of a notice issued by the Treasury Department: The Departm ent o f the Treasury, by this public notice, invites tenders for approximately $9,500 million o f 364-day Treasury bills to be dated August 7, 1986, and to m ature August 6, 1987 (CUSIP No. 912794 MX9). This issue will provide about $725 million of new cash for the Treasury, as the m aturing 52-week bill is outstanding in the am ount o f $8,778 million. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 p.m., Eastern Daylight Saving time, Thursday, July 31, 1986. The bills will be issued on a discount basis under competitive and noncompetitive bidding, and at m aturity their par am ount will be payable without interest. This series of bills will be issued entirely in book-entry form in a m inimum am ount of $10,000 and in any higher $5,000 multiple, on the records either o f the Federal Reserve Banks and Branches, or o f the D epart ment of the Treasury. The bills will be issued for cash and in exchange for Treasury bills m aturing August 7, 1986. In addition to the maturing 52-week bills, there are $14,186 million of m aturing bills which were originally issued as 13-week and 26-weeks bills. The disposition o f this latter am ount will be announced next week. Federal Reserve Banks currently hold $1,759 million as agents for foreign and international m onetary authorities, and $5,180 million for their own account. These am ounts represent the combined holdings of such accounts for the three issues of m atur ing bills. Tenders from Federal Reserve Banks for their own account and as agents for foreign and international m onetary authorities will be accepted at the weighted average bank discount rate o f accepted competitive tenders. Additional am ounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and international m onetary authorities, to the extent that the aggregate am ount o f tenders for such accounts exceeds the aggregate am ount o f m aturing bills held by them . For purposes of determining such additional am ounts, foreign and inter national m onetary authorities are considered to hold $100 million o f the original 52-week issue. Tenders for bills to be m aintained on the book-entry records of the Departm ent of the Treasury should be subm itted on Form PD 4632-1. This Bank will receive tenders at the time indicated in the above notice at the Securities Depart ment of its Head Office and at its Buffalo Branch. A tender form is enclosed. Please be sure to use that form to submit the tender and return it in the enclosed envelope. Forms for submitting tenders directly to the Treasury are available from the Government Bond Division of this Bank. Tenders may not be submitted by telephone. Settlement must be made in cash or other immediately available funds or in maturing Treasury securities. Treasury Tax and Loan Note Option Depositaries may make payment for Treasury bills by credit to their Treasury Tax and Loan Note Accounts. A document containing the standard terms and conditions o f Treasury bill offerings may be obtained from the Circulars Division of this Bank. Results of the previous 52-week bill offering are shown on the reverse side of this circular. E. Gerald Corrigan , President. (Over) R E S U L T S O F P R E V I O U S 52-W E E K O F F E R I N G O F T R E A S U R Y BILLS (ISSUED J U L Y 10, 1986) IRANGE OF ACCEPTED COMPETITIVE ElDSs D iico u n t Investm ent Hate Rate (Equivalent Coupon-Issue yield) P r i c e 5 0§!i$&ji/ 6*33^ 9 3 0 ® ?4 S 3e§33 High S,©0% 6*381. 93.954 Av@rsig© o 5 *S 8 1 So 351 a/ I§se@ptlng 1 tender of $1*000*000. fenders at the high d isco un t rate tie rt © H o tte d 25% * TENDERS RECEIVED AND ACCEPTED (In Thousands) Received Location Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St* Louis Minneapolis Kansas City Dallas San Francisco Treasury TOTALS $ SB *205 21*549*575 9,895 17*595 16*185 12*400 1,323, 330 15 ,850 19,180 22,755 7,410 963,640 114*440 Accepted $ 18,205 8*727,075 9,895 17,595 16,185 12,400 154,080 i ,850 19,180 22,755 5,160 382,390 114,440 $24,130*460 $9,509,210 $21,566,390 364,070 $21,930,460 ..$6,945,140 364*070 $7,309,210 2,100,000 __ __ 100,000 2,100,000 . _ __ 100,000 $24*130,460 $9,509,210 Type Competitive Noncompetitive Subtotal* Public Federal Reserve Foreign Official Institutions TOTALS An additional $161*200 thousand of the bills will be issued to foreign official institutions for new cash* TB-12 (Rev. 9/85) IMPORTANT — This is a standard form. Its terms are subject to change at any time by the Treasury. This tender will be construed as a bid to purchase the securities for which the Treasury has outstanding an invitation for tenders. (See reverse side fo r further instructions.) TENDER FOR 12-MONTH BOOK-ENTRY TREASURY BILLS (For Use in Subscribing Through a Financial Institution) Do N ot Use This Form fo r Direct Subscriptions to the Treasury PRIV A C Y A C T STATEM ENT: The individually identifiable inform ation required on this form is necessary to perm it the tender to be processed and the bills to be issued in accordance with the General Regulations governing United States book-entry Treasury Bills (D epartm ent Circular No. 26-76, Public Debt Series). The transaction will not be completed unless all required data is furnished. To F ederal R eserve Bank of N ew York D ated at ............................................................ Fiscal Agent of the United States New York, N.Y. 10045 .......................................................... , 1 9 ............. Pursuant and subject to the provisions of Treasury D epartm ent Circulars No. 26-76 and No. 27-76, Public Debt Series, and to the provisions of the public notice issued by the Treasury D epartm ent inviting tenders for the current offering of 12-month Treasury bills, the undersigned hereby offers to purchase such currently offered Treasury bills in the am ount indicated below, and agrees to make paym ent therefor at your Bank on or before the issue date in accordance with the provisions of the official offering circular. COMPETITIVE TENDER D o not f ill in both C ompetitive and N oncom petitive tenders on one fo r m $ .................................................................. (m aturity value) or any lesser am ount that may be awarded. R a t e : .................................. (Bank Discount Basis) (Rate must be expressed in two decimal places, fo r example, 7.15 percent. See reverse side o f form fo r additional explanation.) NONCOMPETITIVE TENDER $ .................................................................. (m aturity value) (Not to exceed $1,000,000 fo r one bidder through all sources) at the average of accepted competitive bids. A noncompetitive bidder may not have entered into an agreement, or may not make an agreement with respect to the purchase or sale or other disposition o f any noncompetitive awards o f this issue in this auction prior to the designated closing time fo r receipt o f tenders. Certification by Competitive Bidders: The Bidder’s□ Customer’s □ net long position in these bills (including bills acquired through “ when issued” trading, and futures and forward transactions, as well as holdings of outstanding bills with the same maturity date as the new offering) as of 12:30 p.m. Eastern time on the day of this auction, was — □ N ot in excess of $200 million. □ In excess of $200 million, am ounting to $ ...........................................million. Subject to allotm ent, please issue and accept paym ent for the bills as indicated below: Payment Instructions Safekeeping or Delivery Instructions (No changes will be accepted) Book-Entry— □ l.H old in safekeeping at FRBNY inEl Investment Account (4) □ General Account (5) □ Trust Account (6) □ 2 .Hold as collateral for Treasury Tax and Loan Note Account*(7) □ 3.Wire t o ....................................................................................................(8) Payment will be made as follows: □ By charge to our reserve account □ By credit to the Treasury Tax and Loan Note Account □ By check in immediately available funds □ By surrender o f eligible maturing securities □ By charge to my correspondent bank (Exact Receiving Bank Wire A ddress/A ccount) (Name o f Correspondent) *The undersigned certifies th at the alloted securities will be owned solely by the undersigned. Nam e o f Subscriber (Please P rint or Type) Address Insert this tender in envelope m arked “Tender fo r Treasury Securities” City Phone (Include A rea Code) State Zip Code Signature o f Subscriber or A uthorized Signature Title o f A uthorized Signer (Banking institutions subm itting tenders for custom er account m ust list custom ers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) (OVER) V IN S T R U C T IO N S : 1. No tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (m aturity value). 2. Only banking institutions and dealers who make prim ary m arkets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for custom er account; in doing so, they may consolidate competitive tenders at the same rate (except that a separate tender must be submitted for each customer whose net long position in the bill being offered exceeds $200 million) and may consolidate noncompetitive tenders, provided a list is attached showing the name o f each bidder and the am ount bid for his account. Others will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer o f the cor poration authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation that such officer has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ......................................................................, a copartnership b y ................................................................................. a member of the firm ” . 4. Tenders will be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face am ount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or trust company. All checks must be drawn to the order of the Federal Reserve Bank of New York; and personal checks must be certified. Checks endorsed to this Bank will not be accepted. 5. The Bank Discount Basis is the difference between the dollar price of a Treasury bill and the m aturity value for a given num ber of days based on a 360-day year. (The investment return or annualized bond-equivalent yield on a Treasury t>ill is at a higher rate than the bank discount basis.) 6. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is m aterial, the tender may be disregarded.
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