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F E D E R A L R E S E R V E BAN K O F NEW YO R K
Fiscal Agent of the United States
r Circular No. 6 5 5 3 '1

L

J une 3, 1970

J

O FFERING OF TWO SERIES OF TREASURY BILLS
$1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated March 12,1970, Due September 10,1970
(To Be Issued June 11, 1970)
$1,300,000,000 of 182-Day Bills, Dated June 11, 1970, Due December 10, 1970
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today:
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$3,100,000,000, or thereabouts, for cash and in exchange for Treas­
ury bills maturing June 11, 1970, in the amount of $2,998,363,000,
as follows:
91-day bills (to maturity date) to be issued June 11, 1970,
in the amount of $1,800,000,000, or thereabouts, repre­
senting an additional amount of bills dated March 12,
1970, and to mature September 10, 1970, originally issued
in the amount of $1,301,270,000, the additional and
original bills to be freely interchangeable.
182-day bills, for $1,300,000,000, or thereabouts, to be dated
June 11, 1970, and to mature December 10, 1970.
The bills of 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 of
$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 Daylight
Saving time, Monday, June 8, 1970. Tenders will not be received
at the Treasury Department, Washington. Each tender must be
for an even multiple of $10,000, and in the case of competitive
tenders the price offered must be expressed on the basis of 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
of customers, provided the names of the customers are set forth
in such tenders. Others than banking institutions will not be per­
mitted 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 invest­
ment securities. Tenders from others must be accompanied by
payment of 2 percent of the face amount of Treasury bills applied
for, unless the tenders are accompanied by an express guaranty of
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 of the
amount and price range of accepted bids. Only those submitting
competitive 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 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 competi­
tive bids for the respective issues. Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on June 11, 1970, in cash or other immedi­
ately available funds or in a like face amount of Treasury bills
maturing June 11, 1970. Cash and exchange tenders will receive
equal treatment. Cash adjustments 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 Treasury bills, whether 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 Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 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 im­
posed on the principal or interest thereof by any State, or any of
the possessions of the United States, or by any local taxing au­
thority. For purposes of taxation the amount of discount at which
Treasury bills are originally sold by the United States is consid­
ered to be interest. Under Sections 454(b) and 1221(5) of the
Internal Revenue Code of 1954, the amount 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. Accord­
ingly, the owner of 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 during 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 of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be ob­
tained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 8,
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 Treasury Bills (W eekly).” Tenders may be submitted by telegraph, subject to written confirmationthey may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treas­
ury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturinq
Treasury Bills.
Results of the last weekly offering of Treasury bills (91-day bills to be issued June 4, 1970, representing an
additional amount of bills dated March 5, 1970, maturing September 3, 1970; and 182-day bills dated June 4 1970
maturing December 3, 1970) are shown on the reverse side of this circular.
’
’




A

lfred

H

ay es,

President.

(

o ver

)

RESULTS OF LAST W EEK LY O FFER IN G OF TREASURY BILLS (TW O SERIES
TO BE ISSUED JUNE 4, 1970)

R ange of Accepted C om petitive Bids
91-Day Treasury Bills
Maturing September 3 , 1970

182-Day Treasury Bills
Maturing December 3, 1970

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

High ..................... ...........................

98.294

6.749%

96.555

6.814%

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

98.266

6.860%

96.530

6.864%

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

98.275

6.824% 1

96.533

6.858% 1

Low

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.04 percent for the 91-day bills, ar
7.20 percent for the 182-day bills.

(68 percent of the amount of 182-day bills
bid for at the low price was accepted.)

(91 percent of the amount of 91-day bills
bid for at the low price was accepted.)

T otal Tenders A pplied for and Accepted (By F ederal Reserve Districts)
182-Day Treasury Bills
M aturing December 3 , 1970

91-Day Treasury Bills
Maturing September 5 , 1970
Applied for

District

Boston .................. .....................

$

31,640,000

Applied for

Accepted

$

31,620,000

$

19,100.000

Accepted

$

8,050,000

New York ............ .....................

1.892,320,000

1.137,620,000

2,033,040,000

930,340,000

Philadelphia ....... .....................

53,940,000

23,530,000

12,580,000

11,280,000

Cleveland .............. ......................

44,460,000

36,700,000

46,830,000

26,060,000

Richmond ............ .....................

44,480,000

37,980,000

32,820,000

19,320,000

A tlanta ..................

46,980,000

34,890,000

44,470,000

18,170,000

Chicago ................ .....................

299,950,000

250,260,000

323,380,000

165,300,000

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

41,900,000

35,970,000

42,700,000

19,780,000

Minneapolis ........ .................

40,170,000

34,540,000

27,100,000

4,100,000

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

29,790,000

28,680,000

26,530,000

18,730,000

Dallas ..................... .....................

30,870,000

19,870,000

25,290,000

12,290,000

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

186,500,000

128,800,000

174,440,000

72,200,000

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

$2,743,000,000

St. Louis ..............

San Francisco
T otal

$ 1,800,460,000 a

$2,808,280,000

a Includes $347,440,000 noncompetitive tenders accepted at the average price of 98.275.
b Includes $214,090,000 noncompetitive tenders accepted at the average price of 96.533.




$1,305,620,000b