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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r Circular No. 6 4 4 3 "1 1- November 26,1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated September 4,1969, Due March 5,1970 (To Be Issued December 4, 1969) $1,200,000,000 of 182-Day Bills, Dated December 4, 1969, Due June 4, 1970 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice issued by the Treasury Department, released at 4 p.m. tod a y: The Treasury Department, by this public notice, invites tenders for two series o f Treasury bills to the aggregate amount of $3,000,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing December 4, 1969, in the amount of $2,903,767,000, as fo llo w s: 91-day bills (to maturity date) to be issued December 4, 1969, in the amount o f $1,800,000,000, or thereabouts, representing an additional amount o f bills dated Septem ber 4, 1969, and to mature March 5, 1970, originally issued in the amount o f $1,201,020,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,200,000,000, or thereabouts to be dated December 4, 1969, and to mature June 4, 1970. The bills o f both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Monday, December 1, 1969. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple o f $1,000, and in the case o f competitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers, provided the names o f the customers are set forth in such tenders. Others than banking institutions will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. The Secretary o f 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 reserva tions, noncompetitive tenders for each issue fo r $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted competitive bids fo r the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on December 4, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills matur ing December 4, 1969. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, as such, under the Internal Revenue Code o f 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 1954, the amount o f discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccord ingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity dur ing the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Standard time, Monday, December 1, 1969, at the Securities Department o f its Head Office and at its Buffalo Branch. Tender forms fo r 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.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results o f the last weekly offering o f Treasury bills (90-day bills to be issued November 28, 1969, representing an additional amount o f bills dated August 28, 1969, maturing February 26, 1970; and 181-day bills dated November 28, 1969, maturing M ay 28, 1970) are shown on the reverse side o f this circular. A lfred H ayes, President. RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 28, 1969) Range of Accepted Competitive Bids 90-D ay Treasury Bills 181-Day Treasury Bills Maturing February 2 6 ,1 97 0 Maturing M ay 2 8 ,1 97 0 Approx. equiv. annual rate Price Price Approx. equiv. annual rate H igh ............................................................ 98.178a 7.288% 95.968b 8.019% L ow ............................................................. 98.119 7.524% 95.962 8.031% Average ...................................................... 98.131 7.476%* 95.964 8 .027% 1 a Excepting one tender o f $1,212,000. b Excepting two tenders totaling $5,115,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.72 percent for the 90-day bills, and >.48 percent fo r the 181-day bills. (41 percent o f the amount o f 90-day bills bid fo r at the low price was accepted.) (76 percent o f the amount o f 181-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 90-Day Treasury Bills Maturing February 26 ,1 97 0 A pplied for District ............. $ 33,786,000 181-Day Treasury Bills Maturing M ay 2 8,1970 Accepted $ 23,786,000 Applied for $ 7,270,000 Accepted $ 7,270,000 ............. 2,154,552,000 1,319,102,000 2,719,358,000 975,507,000 ............. 41,866,000 26,866,000 21,519,000 10,540,000 ............. 37,357,000 37,357,000 46,808,000 25,199,000 ............. 21,306,000 21,306,000 16,228,000 10,228,000 ............. 37,858,000 28,878,000 32,222,000 15,676,000 ............. 145,947,000 143,677,000 227,837,000 36,288,000 ............. 42,426,000 41,949,000 41,916,000 31,016,000 ................... ............. 22,252,000 13,252,000 18,590,000 6,590,000 28,217,000 28,217,000 23,145,000 18,728,000 ............. 24,209,000 20,209,000 21,473,000 11,457,000 San Francisco ............... ............. 143,474,000 95,859,000 216,090,000 52,845,000 ............. $2,733,250,000 Minneapolis Kansas City .................... T otal ........................... $1,800,458,000° 0 Includes $337,510,000 noncompetitive tenders accepted at the average price of 98.131. d Includes $225,295,000 noncompetitive tenders accepted at the average price of 95.964. $3,392,456,000 $1,201,344,000d
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