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f FE D ER A L R ESER V E BANK O F NEW YO R K Fiscal Agent of the United States Circular No. 6 6 2 1 J t October20,1970 OFFERING OF TWO SERIES OF TREASURY BILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated July 30, 1970, Due January 28, 1971 (To Be Issued October 29, 1970) $1,400,000,000 of 182-Day Bills, Dated October 29, 1970, Due April 29, 1971 T o A l l In c o rp o ra te d B a n k s and T r u s t C o m p a n ies, an d O th e rs C o n cern 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 re a su ry D epartm ent, released a t 4 p.m. to d a y : T he T reasury Departm ent, by this public notice, invites tenders fo r two series of T reasury bills to the aggregate amount of $3,200,000,000, o r thereabouts, fo r cash and in exchange fo r T reasury bills m aturing October 29, 1970, in the am ount of $3,102,340,000, as follow s: panies and from responsible and recognized dealers in investment securities. Tenders from others m ust 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 o r tru st company. 91-day bills (to m aturity date) to be issued October 29, 1970, in the amount of $1,800,000,000, o r thereabouts, rep resenting an additional amount of bills dated July 30, 1970, and to m ature January 28, 1971, originally issued in the amount of $1,300,670,000, the additional and original bills to be freely interchangeable. Immediately a fte r 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 am ount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance o r rejection thereof. T he Secretary of the T reasury expressly reserves the right to accept o r reject any or all tenders, in whole o r in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r 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 w ith the bids must be made o r completed at the Federal Reserve Bank on October 29, 1970, in cash or other immediately available funds o r in a like face am ount of T reasury bills m aturing October 29, 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 29, 1970, and to m ature A pril 29, 1971 (C U S IP No. 912793 K F 2 ). T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and a t m aturity their face amount will be payable w ithout 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 (m aturity value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, Monday, October 26, 1970. Tenders will not be received a t the T reasury Departm ent, W ashington. 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 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 may 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 ow ner 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, whether 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 tenders fo r both series up to 1:30 p.m., Eastern Standard time, M onday, O ctober 26, 1970, at the Securities D ep artm en t of its H ead Office and a t its Buffalo B ranch. T en d er form s fo r the respective series are enclosed. Please use the appropriate 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 Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. R esults of th e last weekly offering of T re a su ry bills (91-day bills to be issued O ctober 22, 1970, representing an additional am ount of bills dated Ju ly 23, 1970, m atu rin g Ja n u a ry 21, 1971; and 182-day bills dated O ctober 22, 1970, m aturin g A p ril 22, 1971) are show n on th e 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 (TW O SE R IE S T O B E ISSU E D O C T O B E R 22, 1970) R an g e of A ccepted C o m p etitiv e B ids 91-Day Treasury Bills Maturing January 21,1971 182-Day Treasury Bills Maturing April 22,1971 P r ic e A p p ro x . equ iv. annual r a te P r ic e A p p r o x . eq u iv. annual ra te ............................. .................. 98.504 5.918% 96.930 6.073% L o w ............................... .................. 98.494 5.958% 96.886 6.160% A v e r a g e ......................... .................. 98.498 S.942% 1 96.902 6.128% 1 H ig h 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 6.12 percent fo r the 91-day bills, and 6.41 percent fo r the 182-day bills. (79 p ercent of the am ount of 91-day bills bid fo r a t the low price w as accepted.) (54 percent of the am ount of 182-day bills bid fo r a t the low price w as 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 January 21,1971 B oston A c c e p te d A p p lie d f o r D is tr ic t ............................. ......... $ 31,165,000 182-Day Treasury Bills Maturing April 22,1971 $ 20,575,000 A p p lied f o r $ 18,000,000 A c c e p te d $ 18,000,000 ....................... ......... 2,353,735,000 1,378,185,000 1,511,365,000 P h ila d e lp h ia .................... ......... 42,080,000 23,115,000 10,595,000 10,595,000 C leveland ......................... ......... 51,655,000 41,630,000 39,175,000 26,445,000 R ic h m o n d ......................... ......... 53,155,000 21,845,000 19,930,000 13,010,000 A tla n ta ............................. ......... 55,345,000 39,535,000 37,660,000 32,200,000 C h ic a g o ............................. ......... 241,430,000 97,670,000 213,430,000 175,930,000 St. L o u i s ........................... ......... 47,625,000 33,865,000 35,005,000 31,905,000 M inneapolis .................... ......... 37,550,000 24,800,000 26,065,000 16,065,000 K ansas C ity ...................... ......... 44,720,000 38,985,000 27,265,000 25,965,000 D allas ................................. ......... 30,880,000 17,680,000 31,495,000 26,035,000 166,445,000 62,870,000 129,495,000 55,195,000 N ew Y o rk S an F rancisco .................. T o t a l ................. ......... $3,155,785,000 $1,800,755,000a a Includes $389,300,000 noncompetitive tenders accepted at the average price of 98.498. b Includes $230,415,000 noncompetitive tenders accepted at the average price of 96.902. $2,099,480,000 968,965,000 $l,400,310,000b
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