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F E D E R A L R ESER VE B A N K O F N E W YORK Fiscal Agent of the United States r Circular No. 6 6 1 0 ~ I L September 29, 1970 J OFFERING OF TWO SERIES OF TREASURY BILLS L ,800,000,000 of 91-Day Bills, Additional Amount, Series Dated July 9, 1970, Due January 7,1971 (To Be Issued October 8, 1970) $1,400,000,000 of 182-Day Bills, Dated October 8, 1970, Due April 8, 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 8, 1970, in the amount of $3,105,520,000, as follows: 91-day bills (to maturity date) to be issued October 8, 1970, in the amount of $1,800,000,000, or thereabouts, representing an additional amount of bills dated July 9, 1970, and to mature January 7, 1971, originally issued in the amount of $1,311,020,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated October 8, 1970, and to mature April 8, 1971 (CUSIP No. 912793 KC9). 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, October 5, 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. to d a y : 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 8, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 8, 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 h is B ank will receive tenders for both series up to 1 :30 p.m., E a ste rn D aylight Saving time, M onday, O cto ber 5, 1970, at the Securities D epartm ent of its H ead Office and at its Buffalo B ranch. T en d er form s for the respective series are enclosed. Please use the app ro p riate form s to subm it tenders and re tu rn them in the enclosed envelope m arked “ T en d er for T reasu ry Bills (W e e k ly ).” T en d ers 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 (9 1 -day bills to be issued O ctober 1, 1970, representing an additional am ount of bills dated D ecem ber 31, 1969, m atu rin g D ecem ber 31, 1970; and 182-day bills dated O ctober 1, 1970, m atu rin g A p ril 1, 1971) are show n on the reverse side of this circular. A lfred H a y es, President. ( over) R E SU L T S O F LA 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 S E R IE S TO B E ISSU ED O C T O B E R 1, 1970) R ange of A ccepted C om petitive B ids 91-Day Treasury Bills M aturing December 31,1970 182-Day Treasury Bills M aturing A pril 1,1971 P rice A pprox. equiv. annual rate H i g h ................................ .................. 98.553 5.724% 96.804a 6.322% ................................ .................. 98.511 5.891% 96.766 6.397% A verage ......................... .................. 98.532 5.807% ! 96.778 6.373% ! L ow P rice A p p ro x . equiv. annual rate a Excepting two tenders totaling $800,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.98 percent for the 91-day bills, and 6.68 percent for the 182-day bills. (21 percent of the am ount of 91-day bills bid for a t the low price was accepted.) (2 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 M aturing December 31,1970 ........................... ........... B oston A ccepted A pplied for D istrict $ 28,715,000 182-Day Treasury Bills M aturing A pril 1,1971 $ 18,415,000 A pplied for $ 15,510,000 A ccepted $ 15,510,000 .................... ........... 1,806,755,000 1,202,505,000 1,810,775,000 922,825,000 Philadelphia .................. ........... 41,170,000 26,070,000 14,670,000 9,320,000 ....................... ........... 40,540,000 40,540,000 35,780,000 35,280,000 Richm ond ....................... ........... 25,670,000 23,170,000 11,080,000 8,580,000 ........................... ........... 47,555,000 40,765,000 36,825,000 20,935,000 Chicago ........................... ........... 217,080,000 217,080,000 318,735,000 233,735,000 ....................... ........... 46,185,000 44,210,000 42,245,000 35,165,000 .................. ........... 39,710,000 39,710,000 25,560,000 20,560,000 K ansas C i t y .................. ........... 35,055,000 34,555,000 30,115,000 26,875,000 ............................. ........... 28,910,000 22,910,000 27,420,000 14,420,000 95,715,000 90,715,000 116,415,000 56,975,000 N ew Y o rk Cleveland A tlan ta St. L ouis M inneapolis D allas S an Francisco T otal ............. ....................... ........... $2,453,060,000 $ 1,800,645,000b $2,485,130,000 b Includes $337,505,000 noncompetitive tenders accepted at the average price of 98.532. c Includes $208,630,000 noncompetitive tenders accepted at the average price of 96.778. $1,400,180,000c
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