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FE D ER A L RESER V E BANK OF NEW Y O R K Fiscal Agent of the United States [" Circular No. 6635 ~| LNovember 10 , 1970 J O F F E R IN G OF T W O SERIES O F T R E A S U R Y B ILLS $1,800,000,000 of 91-Day Bills, Additional Amount, Series Dated August 20,1970, Due February 18,1971 (To Be Issued November 19,1970) $1,400,000,000 of 182-Day Bills, Dated November 19, 1970, Due May 20, 1971 T o A l l I n c o r p o ra te d B a n k s and T r u s t Com panies, and O t h e r s Con ce rn ed, in the S eco n d F e dera l R e s e r v e D i s t r i c t : Follow ing is the text of a notice issued by the T reasury D epartm ent, released at 4 p.m. today : 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 November 19, 1970, in the amount of $3,106,830,000, as follows: 91-day bills (to maturity date) to be issued November 19, 1970, in the amount of $1,800,000,000, or thereabouts, repre senting an additional amount of bills dated August 20. 1970. and to mature February 18, 1971, originally issued in the amount of $1,297,710,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated November 19, 1970, and to mature May 20, 1971 (C U SIP No. 912793 K J4). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denomi nations 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 Standard time, Monday, November 16, 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 multi ples 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 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 per mitted 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 ir. invest ment 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 competi tive 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 November 19, 1970, in cash or other immediately available funds or in a like face amount of Treasury bills maturing November 19, 1970. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for dif ferences 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 Bank will receive tenders for both series up to 1 :30 p.m., E astern S tandard time, M onday, N ovem ber 16, 1970, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender forms for the respective series are enclosed. Please use the appropriate form s to subm it tenders and return them in the enclosed envelope m arked “ T ender for T reasu ry Bills (W e e k ly ).” T enders not requiring a deposit may be subm itted by telegraph, subject to w ritten confirm ation; no tenders may be subm itted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. or in maturing Treasury bills. Settlement must be made in cash or other immediately available funds Results of the last weekly offering of T reasu ry bills (91-day bills to be issued N ovem ber 12, 1970. representing an additional am ount of bills dated A ugust 13, 1970. m aturing F ebruary 11, 1971 ; and 182-day bills dated N ovem ber 12, 1970, m aturing M ay 13, 1971) are shown on the reverse side of this circular. A lfred H ayes, 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 SU R Y BILLS (T W O SE R IE S T O B E ISSU ED N O V E M B E R 12, 1970) R ange of A ccepted C om petitive B ids 91-Day Treasury Bills Maturing February 11, 1971 Price 182-Day Treasury Bills Maturing May 13, 1971 Approx. equiv. annual rate Price Approx. equiv. annual rate H igh -------------------------- ________ 98.632“ 5.412% 97.160 5.618% Low __________________ ________ 98.614 5.483% 97.137 5.663% A v e ra g e _______________________ 98.620 5.459% ! 97.142 5.653% 1 a Excepting one tender of $300,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.61 percent for the 91-day bills, and 5.90 percent for the 182-day bills. (89 percent of the am ount of 91-day bills bid for at the low price was accepted.) (36 percent of the am ount of 182-day bills bid for at the low price was accepted.) T o tal T enders A p p lied fo r and A ccepted (By F e d e ra l Reserve D istricts) 91-Day Treasury Bills Maturing February 11,1971 Boston - --- -------------------------- $ 31,820,000 Applied for Accepted Applied for District 182-Day Treasury Bills Maturing May 13,1971 $ 31,820,000 $ 16,505,000 Accepted $ 5,375,000 New Y ork _________________ 2,145,730,000 1,235,280,000 2,259,780,000 1,156,940,000 Philadelphia ------------------------- 38,310,000 23,310,000 30,440,000 7,370,000 Cleveland __________________ 45,575,000 44,625,000 28,290,000 21,825,000 Richm ond __________________ 19,550,000 17,995,000 30,770,000 15,770,000 A tlanta _____________________ 45,900,000 35,870,000 37,785,000 18,045,000 Chicago ___________________ 218,160,000 191,560,000 224,485,000 52,155,000 St. Louis ___ -______________ 38,900,000 34,780,000 35,385,000 22,765,000 M inneapolis ________________ 40,025,000 32,805,000 32,735,000 22,935,000 K ansas City ________________ 36,680,000 31,370,000 29,585,000 16,770,000 Dallas ______________________ 29,400,000 16,345,000 24,945,000 11,945,000 San Francisco ______________ 186,090,000 105,580,000 189,275,000 48,990,000 T otal ________________ $2,876,140,000 $ 1,801,340,000b b Includes $325,235,000 noncompetitive tenders accepted at the average price of 98.620. c Includes $187,235,000 noncompetitive tenders accepted at the average price of 97.142. $2,939,980,000 $1,400,885,000c
@FedFRASER