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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 j" Circular No. 6 6 0 6 1 L September 22, 1970 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated Dec. 31, 1969, Due Dec. 31, 1970 (To Be Issued October 1, 1970) $1,400,000,000 of 182-Day Bills, Dated October 1, 1970, Due April 1, 1971 T o 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 October 1, 1970, in the amount of $3,107,760,000, as follows: 91-day bills (to maturity date) to be issued October 1, 1970, in the amount of $1,800,000,000, or thereabouts, representing an additional amount of bills dated Decem ber 31, 1969, and to mature December 31, 1970, origi nally issued in the amount of $1,002,063,000 (additional amounts of $500,400,000 and $1,303,120,000 were issued March 31, 1970, and July 2, 1970, respectively), the addi tional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated October 1, 1970, and to mature April 1, 1971 (CUSIP No. 912793 KB1). 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 28, 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 D epartm ent, released at 4 p.m. today: dealers in investment 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 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 October 1, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 1, 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. 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 28, 1970, a t 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 ap p ro p riate form s to subm it tenders and retu rn them in the enclosed envelope m arked “ T en d er for T re a su ry Bills (W e e k ly ).” T enders m ay be subm itted by telegraph, subject to w ritten confirm ation; they m ay not be subm itted by telephone. Paym ent for the Treasury bills cannot be made by credit through the Treas ury T a x and Loan Account. Settlem ent m ust 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 24, 1970, representing an additional am ount of bills dated Ju n e 25, 1970, m aturing December 24, 1970; and 182-day bills dated Septem ber 24, 1970, m atu rin g M arch 25, 1971) are show n on the reverse side of this circular. A lfred H a y es, P resident. ( over) R E SU 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 ISSU ED S E P T E M B E R 24, 1970) R an g e of A ccep ted C o m petitive B ids 91-Day Treasury Bills M aturing December 24,1970 182-Day Treasury Bills M aturing March 25,1971 A p p ro x . equiv. annual rate P rice A p p ro x . equiv. annual rate 98.509 5.898% 96.868 6.195% Low ........ ......................... 98.491 5.970% 96.836 6.258% A v e r a g e .................. ......................... 98.495 5.954% ! 96.845 6.241% ! Price H i g h ......................... ......................... 1 T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 6.13 p ercen t for the 91-day bills, an 6.53 p ercen t for th e 182-day bills. (92 percent of the am ount of 91-day bills bid for a t the low price was accepted.) (44 percent of the am ount of 182-day bills bid for a t the low price was accepted.) T o ta l T en ders 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 24,1970 .................. ..................... Boston A ccepted A pplied for D istrict $ 28,395,000 182-Day Treasury Bills Maturing March 25,1971 $ 18,385,000 A pplied for $ 29,315,000 A ccepted $ 18,315,000 .......... ..................... 2,199,685,000 1,269,030,000 1,828,195,000 963,435,000 Philadelphia ........... .................... 46,720,000 21,365,000 19,785,000 14,455,000 ................ .................... 46,470,000 45,350,000 24,915,000 21,115,000 R ichm ond .................................... 32,905,000 32,905,000 38,845,000 34,845,000 .................. .................. C h ic a g o .................. .................. 57,185,000 39,525,000 37,755,000 23,955,000 242,175,000 180,130,000 256,445,000 151,085,000 ................ ................ 47,600,000 38,600,000 32,655,000 25,555,000 .......... .................. 32,975,000 23,695,000 30,110,000 14,270,000 K ansas C i t y ........... .................. 50,295,000 34,660,000 36,090,000 22,125,000 ....................... .................. 30,590,000 17,090,000 29,565,000 15,765,000 177,110,000 79,320,000 166,020,000 95,160,000 N ew York Cleveland A tlan ta St. L ouis M inneapolis D allas S an Francisco T otal ............. ................ $2,992,105,000 $1,800,055,000* $2,529,695,000 a Includes $373,210,000 noncom petitive tenders accepted at the average price of 98.495. b Includes $203,945,000 noncompetitive tenders accepted at the average price of 96.845. $1,400,080,000b
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