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F E D E R A L R ESER VE B A N K O F N E W Y OR K Fiscal Agent of the United States r Circular No. 6 6 0 1 " I U September 8, 1970 J OFFERING OF TWO SERIES OF TREASURY BILLS .,800,000,000 of 91-Day Bills, Additional Amount, Series Dated June 1 8 ,1 9 7 0 , Due Dec. 17, 1970 (To Be Issued September 17, 1970) $1,400,000,000 of 182-Day Bills, Dated September 17, 1970, Due March 18, 1971 To A ll Incorporated B anks and T ru st Com panies, and O thers Concerned, in the Second F ederal R e se rv e D istric t: Follow ing is the te x t of a notice issued by the T reasu ry The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $3,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing September 17, 1970, in the amount of $3,105,940,000, as follows: 91-day bills (to maturity date) to be issued September 17, 1970, in the amount of $1,800,000,000, or thereabouts, representing an additional amount of bills dated June 18, 1970, and to mature December 17, 1970, originally issued in the amount of $1,302,670,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated September 17, 1970, and to mature March 18, 1971 (CUSIP No. 912793 JZ0). 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, $15,000, $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 Day light Saving time, Monday, September 14, 1970. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. 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 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 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 D epartm ent, released at 4 p.m. today: 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 competitive 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 September 17, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing Septem ber 17, 1970. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences be tween the par value of maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the difference between the price paid for the 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. 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 obtained from any Federal Reserve Bank or Branch. T his B ank will receive tenders for both series up to 1 :30 p.m., E astern D aylight Saving tim e, M onday, Septem ber 14, 1970, at the Securities D epartm ent of its H ead Office and a t its Buffalo B ranch. T en d er form s for the respective series are enclosed. Please use the appropriate form s to subm it tenders and retu rn them in the enclosed envelope m arked “ T ender for T reasu ry Bills (W e e k ly ).” T enders m ay be subm itted by telegraph, subject to w ritte n confirm ation; they may not be subm itted by telephone. Paym ent for the Treasury bills cannot be made by credit through the Treas ury T ax and Loan Account. Settlem ent must be made in cash or other immediately available funds or in maturing Treasury bills. R esults of the last weekly offering of T reasu ry bills (91-day bills to be issued Septem ber 10, 1970, representing an additional am ount of bills dated Ju n e 11, 1970, m aturing D ecem ber 10, 1970; and 182-day bills dated Septem ber 10, 1970, m atu rin g M arch 11, 1971) are shown on the reverse side of this circular. A lfred H a y es, President. ( over) R E S U L T S O F L A ST W E E K L Y O F F E R IN G O F T R E A S U R Y B IL L S (T W O SE R IE S TO B E ISS U E D S E P T E M B E R 10, 1970) R an g e of A ccep ted C om petitive B ids 91-Day Treasury Bills M aturing December 10,1970 P rice 182-Day Treasury Bills M aturing March 11,1971 A p p ro x . equiv. annual rate P rice A p p ro x . equiv. annual rate H i g h ................ .................................. 98.408 6.298% 96.693a 6.541% .................................. 98.384 6.393% 96.677 6.573% A v e r a g e ......... .................................. 98.391 6.365% ! 96.686 6.555% ! a Excepting one tender of $600,000. - These rates are on a bank discount basis. The equivalent coupon issue yields are 6.56 percent for the 91-day bills, an 6.87 percent for the 182-day bills. (70 percent of the am ount of 9’1-day bills bid for at the low price was accepted.) (49 percent of the am ount of 182-day bills bid for at the low price was accepted.) T o ta l T en d ers A p p lie d fo r an d A ccepted (B y F e d e ra l R eserve D istricts) 91-Day Treasury Bills Maturing December 10,1970 A ccepted Applied, for D istrict ............................. $ 29,965,000 182-Day Treasury Bills M aturing March 11,1971 $ 19,545,000 A pplied for $ 18,545,000 A ccepted $ 5,545,000 . . ............................. 1,957,975,000 1,127,975,000 2,299,285,000 1,130,785,000 Philadelphia . ............................. 36,320,000 21,195,000 9,400,000 9,300,000 ............................. 43,715,000 43,300,000 21,315,000 19,215,000 R ichm ond . . . ............................. 43,565,000 32,465,000 22,530,000 12,430,000 ......... ............................. 42,600,000 27,665,000 37,190,000 13,900,000 C h ic a g o ......... ............................. 228,995,000 209,895,000 177,170,000 30,905,000 ............................. 49,915,000 45,915,000 34,020,000 27,220,000 . . , ............................ 31,235,000 25,675,000 25,510,000 9,310,000 K ansas City .. ............................. 42,135,000 40,755,000 27,685,000 18,185,000 ............. ............................. 28,470,000 15,870,000 25,045,000 11,445,000 ........................... 218,780,000 190,080,000 278,615,000 112,555,000 .............................. $2,753,670,000 N ew Y o rk A tlan ta St. Louis M inneapolis D allas San Francisco T otal $1,800,335,000b $2,976,310,000 b Includes $313,535,000 noncompetitive tenders accepted at the average price of 98.391. c Includes $165,585,000 noncompetitive tenders accepted at the average price of 96.686. $1,400,795,000c
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