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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
r Circular No. 6 4 5 6 1
L December 22, 1969 J

OFFERING OF T W O SERIES OF T R E A SU R Y BILLS
$1,800,000,000 of 90-Day Bills, Additional Amount, Series Dated October 2, 1969, Due April 2, 1970
(To Be Issued January 2, 1970)
$1,200,000,000 of 181-Day Bills, Dated January 2, 1970, Due July 2, 1970
T o A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal R eserve D istrict:

Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today:
T h e T reasu ry D epartm ent, by this public notice, invites
tenders for tw o series of T reasu ry bills to the aggregate am ount
o f $3,000,000,000, or thereabouts, for cash and in exchange for
T reasu ry bills m aturing January 2, 1970, in the am ount of
$2,911,209,000, as fo llo w s:
90-day bills (to m aturity date) to be issued January 2,
1970, in the am ount of $1,800,000,000, or thereabouts,
representing an additional am ount of bills dated O c to ­
ber 2, 1969, and to mature A pril 2, 1970, originally
issued in the am ount of $1,208,450,000, the additional
and original bills to be freely interchangeable.
181-d ay bills, for $1,200,000,000, or thereabouts, to be
dated January 2, 1970, and to mature July 2, 1970.
T h e bills of both series will be issued on a discount basis
under com petitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable
w ithout interest. T h e y will be issued in bearer form only, and
in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (m aturity valu e).
T en ders will be received at Federal R eserve B anks and
Branches up to the closing hour, one-thirty p.m ., Eastern
Standard time, M on d ay, D ecem ber 29, 1969. T en ders will not
be received at the T reasury D epartm ent, W a sh in g to n . Each
tender m ust be for an even multiple of $1,000, and in the case
of com petitive tenders the price offered m ust be expressed on
the basis of 100, with not m ore than three decimals, e.g., 99.925.
Fractions m ay not be used. It is urged that tenders be made
on the printed form s and forw arded in the special envelopes
w hich will be supplied by Federal R eserve Banks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for
account of custom ers, provided the nam es of the custom ers are
set forth in such tenders. O th ers than banking institutions will
not be perm itted to submit tenders except for their ow n account.
T en d ers will be received without deposit from incorporated
banks and trust com panies and from responsible and recognized
dealers in investm ent securities. T en ders from others m ust be
accom panied by paym ent of 2 percent o f the face am ount of
T reasu ry bills applied for, unless the tenders are accom panied
by an express guaranty of paym ent by an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders will be opened
at the Federal R eserve Banks and Branches, follow ing which

public announcem ent will be m ade by the T reasury D epartm ent
of the am ount and price range of accepted bids. T h ose sub­
m itting tenders will be advised of the acceptance or rejection
thereof. T h e Secretary of the T reasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part,
and his action in any such respect shall be final. Subject to
these reservations, noncom petitive tenders for each issue for
$200,000 or less w ithout stated price from any one bidder will
be accepted in full at the average price (in three decim als) of
accepted com petitive bids for the respective issues. Settlem ent
for accepted tenders in accordance with the bids m ust be made
or com pleted at the Federal R eserve Bank on January 2, 1970,
in cash or other im m ediately available funds or in a like face
am ount of T reasury bills m aturing January 2, 1970. Cash and
exchange tenders will receive equal treatm ent. Cash adjust­
m ents will be made for differences betw een the par value of
m aturing bills accepted in exchange and the issue price of the
new bills.
T h e incom e derived from T reasury bills, whether interest
or gain from the sale or other disposition of the bills, does not
have any exem ption, as such, and loss from the sale or other
disposition of T reasu ry bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. T h e
bills are subject to estate, inheritance, gift or other excise
taxes, w hether Federal or State, but are exem pt from all taxa­
tion now or hereafter im posed on the principal or interest
thereof by any State, or any of the possessions of the U nited
States, or by any local taxing authority. F or purposes of
taxation the am ount of discount at which T reasu ry bills are
originally sold by the U nited States is considered to be interest.
U nder Sections 4 5 4 (b ) and 1 22 1(5) of the Internal Revenue
C ode o f 1954, the am ount 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 in gly,
the ow ner of T reasu ry bills (other than life insurance co m ­
panies) issued hereunder need include in his incom e tax return
only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the
am ount actually received either upon sale or redem ption at
m aturity during the taxable year for which the return is made,
as ordinary gain or loss.
T reasu ry D ep artm ent Circular N o . 418 (current revision)
and this notice prescribe the term s of the T reasu ry bills and
govern the conditions of their issue. Copies of the circular m ay
be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 29,
1969, 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.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be
submitted by telephone. Payment for 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 of the last weekly offering of Treasury bills (90-day bills to be issued December 26, 1969, representing an
additional amount of bills dated September 25, 1969, maturing March 26, 1970; and 181-day bills dated December 26,
1969, maturing June 25, 1970) are shown on the reverse side of this circular.
A

lfred

H

a y es

,

President.
Please note that the current offering is for 90-day and 181-day Treasury bills.




(

over

)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS

(TWO SERIES

TO BE ISSUED DECEMBER 26, 1969)

Range of Accepted Competitive Bids
90-Day Treasury Bills

181-Day Treasury Bills

Maturing March 2 6 ,1 97 0

Maturing June 25,1 97 0
_

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

H i g h .........................................

98.060

7.760%

96.094

7.769%

Low

.........................................

98.041

7.836%

96.057

7.842%

Average ...................................

98.049

7.804% !

96.071

7.815% !

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8.07 percent for the 90-day bills, and
.25 percent for the 181-day bills.

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

(47 percent of the amount of 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

181-Day Treasury Bills

Maturing March 26 ,1 97 0

Maturing June 25,1970

$

46,331,000

Applied for

Accepted

Applied for

District

$

38,931,000

$

20,007,000

Accepted

$

10,007,000

1,737,369,000

1,255,329,000

1,304,927,000

823,503,000

34,177,000

19,177,000

21,314,000

11,314,000

39,257,000

39,222,000

53,988,000

50,940,000

30,203,000

25,243,000

13,489,000

11,489,000

46,551,000

33,876,000

38,762,000

28,367,000

198,831,000

167,043,000

186,036,000

153,836,000

51,303,000

41,719,000

31,764,000

25,164,000

.................

14,182,000

13,182,000

8,814,000

8,814,000

Kansas City .................

35,865,000

35,627,000

29,739,000

29,589,000

Dallas

............................

26,661,000

18,181,000

24,277,000

15,277,000

San F r a n c is co ...............

171,448,000

112,528,000

130,222,000

31,719,000

T o t al ......................

$2,432,178,000

...........

Minneapolis

$1,800,058,000a

$1,863,339,000

a Includes $339,315,000 noncompetitive tenders accepted at the average price of 98.049.
b Includes $203,692,000 noncompetitive tenders accepted at the average price of 96.071.




$1,200,019,000b