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FE D ER A L R ES ER V E BANK O F NEW YO RK Fiscal Agent of the United States £ Circular No. 6 6 1 7 October 13, 1970 ] OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated July 23, 1970, Due January 21, 1971 (To Be Issued October 22, 1970) $1,400,000,000 of 182-Day Bills, Dated October 22, 1970, Due April 22, 1971 T o A l l In c o r p o ra te d B a n k s a n d T r u s t C o m p a n ies, a n d O th e rs C o n ce rn ed , in th e S e c o n d F e d e ra l R e s e r v e D is tr ic t: Follow ing is the te x t of a notice issued by the T rea su ry D epartm ent, released a t 4 p.m. to d a y : The T reasury Departm ent, by this public notice, invites tenders fo r two series of T reasu ry bills to the aggregate amount of $3,200,000,000, or thereabouts, fo r cash and in exchange fo r T reasury bills m aturing October 22, 1970, in the am ount of $3,104,290,000, as follow s: panies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 91-day bills (to m aturity date) to be issued October 22, 1970, in the am ount of $1,800,000,000, or thereabouts, rep resenting an additional amount of bills dated July 23, 1970, and to m ature January 21, 1971, originally issued in the amount of $1,300,110,000, the additional and original bills to be freely interchangeable. Immediately a fter the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the T reasury D epartm ent 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 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 fo r $200,000 or less w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted com petitive bids fo r the respective issues. Settlem ent fo r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 22, 1970, in cash or other immediately available funds or in a like face amount of T reasury bills m aturing October 22, 1970. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. 182-day bills, fo r $1,400,000,000, or thereabouts, to be dated October 22, 1970, and to m ature A pril 22, 1971 (C U S IP No. 912793 K E 5 ). T he bills of both series will be issued on a discount basis under competitive and noncompetitive 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 denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve B anks and Branches up to the closing hour, one-thirty p.m., E astern Daylight Saving time, Monday, October 19, 1970. Tenders will not be received at the T reasury Departm ent, W ashington. Each tender m ust 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, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders fo r account of customers, provided the names of the customers are set fo rth in such tenders. O thers than banking institutions will not be perm itted to submit tenders except fo r their own account. Tenders will be received w ithout deposit from incorporated banks and tru st com U nder 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 T reasury 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 fo r the bills, w hether on original issue o r on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year fo r which the return is made. T reasury D epartm ent C ircular 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 may be obtained from any Federal Reserve Bank or Branch. T his B ank will receive ten d ers fo r both series up to 1 :30 p.m., E astern D aylight Saving time, M onday, O cto ber 19, 1970, at the S ecurities D epartm ent of its H ead Office and at its Buffalo B ranch. T en d er form s fo r the respective series are enclosed. Please use the ap p ro p riate form s to subm it tenders and re tu rn them in the enclosed envelope m arked “ T en d er fo r T re a su 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. 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 maturing Treasury bills. R esults of the last weekly offering of T re a su ry bills (9 1 -day bills to be issued O ctober 15, 1970, representing an additional am ount of bills dated Ju ly 16, 1970, m aturing Ja n u a ry 14, 1971; and 182-day bills dated O ctober 15, 1970, m atu rin g A p ril 15, 1971) are show n on the reverse side of this circular. A lfred H ayes, President. ( 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 BILLS (TW O SE R IE S TO B E ISSU ED O C T O B E R 15, 1970) R an g e of A ccepted C o m p etitiv e B ids 91-Day Treasury Bills Maturing January 14,1971 182-Day Treasury Bills Maturing April 15,1971 P r ic e A p p r o x . equ iv. annual r a te P r ic e A p p ro x . equ iv. annual ra te 98.488a 5.982% 96.870 6.191% L o w ................................ .................. 98.466 6.069% 96.850 6.231% A v e r a g e ......................... .................. 98.476 6.029% 1 96.853 6.225% 1 H ig h ............................. .................. a Excepting two tenders totaling $210,000. 1 These rates are on a bank discount basis. 6.52 percent for the 182-day bills. The equivalent coupon issue yields are 6.21 percent for the 91-day bills, and (10 percent of th e am ount of 91-day bills bid fo r at the low price was accepted.) (43 percent o f the am ount of 182-day bills bid for a t the low price was accepted.) T o ta l T en d ers A p p lie d fo r a n d A ccepted (B y F e d e ra l R eserve D istricts) 91-Day Treasury Bills Maturing January 14,1971 B oston A c c e p te d A p p lie d f o r D is tr ic t ............................. ......... $ 27,245,000 182-Day Treasury Bills Maturing April 15,1971 $ 18,245,000 A p p lie d f o r $ 15,590,000 A c c e p te d $ 5,340,000 ...................... ......... 2,050,845,000 1,256,345,000 2,479,810,000 1,063,460,000 P h ila d e lp h ia .................... ......... 34,845,000 19,845,000 22,970,000 7,970,000 Cleveland ......................... ......... 37,170,000 35,870,000 52,665,000 23,865,000 R ic h m o n d ......................... ......... 23,875,000 21,875,000 40,395,000 33,895,000 A tla n ta ............................. ......... 45,075,000 35,475,000 34,660,000 15,770,000 C h ic a g o ............................. ......... 246,565,000 194,565,000 333,280,000 132,630,000 St. L o u i s ........................... ......... 44,530,000 36,760,000 47,285,000 40,625,000 M inneapolis ...................... ......... 33,045,000 24,045,000 29,845,000 5,245,000 K ansas C ity ...................... ......... 38,665,000 36,585,000 31,490,000 22,050,000 D allas ................................. ......... 29,430,000 17,430,000 28,285,000 14,245,000 167,125,000 103,625,000 325,125,000 36,950,000 N ew Y o rk S an F rancisco .................. T o t a l ................. ......... $2,778,415,000 $1,800,665,000b b Includes $319,655,000 noncompetitive tenders accepted at the average price of 98.476. c Includes $206,735,000 noncompetitive tenders accepted at the average price of 96.853. $3,441,400,000 $1,402,045,000°
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