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FEDERAL RESERVE BANK OF N E W YORK
F iscal A g e n t of th e U n ited S tates
TCircular No. 6 4 7 6 1
L January 28, 1970 J
OFFERING OF TWO SERIES OF TREASURY BILLS
$1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated November 6, 1969, Due May 7, 1970
(To Be Issued February 5, 1970)
$1,200,000,000 of 182-Day Bills, Dated February 5, 1970, Due August 6, 1970
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:
Following is the text of a notice issued by the T reasury Department, released at 4 p.m. today:
T he T reasury D epartm ent, by this public notice, invites
tenders for tw o series of T reasury bills to the aggregate
amount of $3,000,000,000, or thereabouts, for cash and in
exchange for T reasury bills m aturing February 5, 1970, in the
am ount of $3,004,928,000, as follows:
91-day bills (to m aturity date) to be issued February
5, 1970, in the am ount of $1,800,000,000, or th ere
abouts, representing an additional am ount of bills
dated November 6, 1969, and to m ature May 7, 1970,
originally issued in the am ount of $1,201,387,000, the
additional and original bills to be freely inter
changeable.
182-day bills, for $1,200,000,000, or thereabouts, to be
dated February 5, 1970, and to m ature A ugust 6,
1970.
T he bills of both series will be issued on a discount basis
under competitive and noncom petitive bidding as hereinafter
provided, and at m aturity their face am ount will be payable
w ithout interest. T hey 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 (maturity value).
T enders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern
S tandard tim e, M onday, F ebruary 2, 1970. Tenders will not
be received at the T reasury D epartm ent, W ashington. 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, w ith not m ore than three decimals, e.g.,
99.925. Fractions may not be used. I t is urged th at 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 of customers, provided the names of the custom ers are
set forth in such tenders. O thers than banking institutions will
not be perm itted to subm it tenders except for their own
account. Tenders will be received w ithout deposit from incor
porated banks and trust com panies and from responsible and
recognized dealers in investm ent securities. T enders from
others m ust be accompanied by paym ent 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.
Im m ediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the T reasury D epart
m ent of the am ount and price range of accepted bids. O nly
those subm itting competitive tenders will be advised of the
acceptance o r rejection thereof. T he Secretary of the T reasury
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 each issue for $200,000 or less without stated price
from any one bidder will be accepted in full at the average
price (in three decimals) of accepted competitive bids for
the respective issues. Settlem ent for accepted tenders in
accordance with the bids m ust be made or completed at the
Federal Reserve Bank on February 5, 1970, in cash or other
immediately available funds o r in a like face am ount of
T reasury bills m aturing F ebruary 5, 1970. Cash and exchange
tenders will receive equal treatm ent. Cash adjustm ents will
be made for differences between the par value of maturing
bills accepted in exchange and the issue price of the new bills.
The income derived from T reasury bills, w hether interest
or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other
disposition of T reasu ry bills does not have any special trea t
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, w hether Federal or State, but are exempt from all taxa
tion now or hereafter imposed 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 o r purposes of
taxation the am ount of discount at which T reasury bills are
originally sold by the United States is considered to be interest
U nder Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954, the am ount of 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. Accordingly,
the owner of T reasury 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,
w hether 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.
Treasury D epartm ent Circular No. 418 (current revision)
and this notice prescribe the term s of the T reasury bills and
govern the conditions of their issue. Copies of the circular mav
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, February 2, 1970,
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 T reasury Bills (W eekly).” Tenders may be submitted by telegraph, subject to written confirmation; they
may not be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury
T a x and Loan Account. Settlem ent m ust be made in cash or other immediately available fu n d s or in maturing
Treasury bills.
Results of the last weekly offering of T reasury bills (91-day bills to be issued January 29, 1970, representing an
additional amount of bills dated A pril 30, 1969, m aturing A pril 30, 1970; and 182-day bills dated January 29, 1970,
m aturing July 30, 1970) are shown on the reverse side of this circular.
A
lfred
H
a y es,
President.
('o v e r ')
RESULTS OF LAST W EEK LY O FFER IN G OF TREASURY BILLS (TW O SERIES
TO BE ISSUED JANUARY 29, 1970)
R ange of Accepted C om petitive Bids
91-Day Treasury Bills
M aturing A pril 30,1970
182-Day Treasury Bills
M aturing July 30,1970
Price
Approx. equiv.
annual rate
Price
Approx. equiv.
annual rate
H igh ................. .....................
98.018*
7.841%
96.090b
7.734%
L o w ................. .....................
97.998
7.920%
96.061
7.791%
A v e ra g e ........... .....................
98.006
7.888% 1
96.069
7.776% 1
b Excepting two tenders totaling $304,000.
a Excepting two tenders totaling $25,000.
1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8.16 percent for the 91-day bills, and
8.21 percent for the 182-day bills.
(80 percent of the amount of 182-day bills
bid for at the low price was accepted.)
(64 percent of the amount of 91-day bills
bid for at the low price was accepted.)
T otal Tenders A pplied for and A ccepted (By F ederal Reserve Districts)
91-Day Treasury Bills
M aturing A pril 30,1970
A pplied for
District
Boston ................... .................
$
38,345,000
182-Day Treasury Bills
M aturing July 30,1970
Accepted
$
38,345,000
A pplied fo r
$
23,848,000
Accepted
$
23,598,000
New Y ork ............. .................
1,982,999,000
1,114,919,000
1,565,262,000
696,052,000
P h ila d e lp h ia ........... .................
48,953,000
38,873,000
24,828,000
14,828,000
...............
54,006,000
54,006,000
71,587,000
61,762,000
R ic h m o n d ................. .................
24,526,000
24,026,000
20,031,000
18,031,000
A tlanta ........................ .................
56,040,000
50,320,000
42,960,000
32,160,000
................... .................
238,113,000
222,113,000
239,373,000
173,368,000
St. Louis ................... ...................
62,741,000
55,633,000
37,442,000
28,142,000
Minneapolis .............. ...............
24,319,000
19,069,000
19,617,000
11,117,000
48,415,000
48,415,000
37,893,000
37,758,000
34,834,000
24,834,000
36,478,000
24,478,000
160,684,000
109,540,000
144,399,000
78,897,000
Cleveland ...............
Chicago
Kansas C i t y ............. ...............
Dallas ........................ ...............
San F ra n c is c o ........ ...............
T o tal
...............
$2,773,975,000
$1,800,093,000°
c Includes $492,023,000 noncompetitive tenders accepted at the average price of 98.006.
d Includes $329,311,000 noncompetitive tenders accepted at the average price of 96.069.
$2,263,718,000
$1,200,191,000d
@FedFRASER