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F E D E R A L R E SE R V E BA N K O F NEW Y O R K

Fiscal Agent of the United States
r Circular No. 6642 "I

LNovember 24,

1970

J

O F F E R IN G OF T W O SERIES OF T R E A S U R Y B ILLS
$1,900,000,000 of 91-Day Bills, A dditional Amount, Series Dated September 3, 1970, Due March 4, 1971
(To Be Issued December 3, 1970)
$1,400,000,000 of 182-Day Bills, Dated December 3, 1970, Due June 3, 1971
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Follow ing is the tex t of a notice issued by the T reasury D epartm ent, released at 4 p.m. to d a y :
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate amount
of $3,300,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing December 3, 1970, in the amount of
$3,107,925,000, as follows:
91-day bills (to maturity date) to be issued December 3,
1970, in the amount of $1,900,000,000, or thereabouts, repre­
senting an additional amount of bills dated September 3,
1970, and to mature March 4, 1971 (C U SIP No. 912793
JX 5), originally issued in the amount of $1,400,355,000, the
additional and original bills to be freely interchangeable.
182-day bills, for $1,400,000,000, or thereabouts, to be dated
December 3, 1970, and to mature June 3, 1971 (C U SIP
No. 912793 KL9).
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 30, 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
ox 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 in 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 December 3, 1970, in cash or other
immediately available funds or in a like face amount of Treasury
bills maturing December 3, 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 h is Bank will receive tenders for both series tip to 1 :30 p.m., E astern Standard time, M onday, N ovem ber 30, 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 forms to submit tenders and return them in the enclosed envelope m arked “Tender
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 m ay 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 e s u l t s of the last weekly offering of T reasu ry bills (90-dav bills to be issued Novem ber 27, 1970. representing an
additional am ount of bills dated A ugust 27, 1970, m aturing F ebruary 25, 1971; and 181-day bills dated November 27,
1970, m atu rin g M ay 27, 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 27, 1970)

R an g e of A ccepted C om petitive B ids

90-Day Treasury Bills
Maturing February 25,1971
Price

181-Day Treasury Bills
Maturing May 27,1971

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

............................... ................

98.829

4.684%

97.599

4.775%

Low ................................. ................

98.797

4.812%

97.546

4.881%

A v e r a g e ........................... ................

98.810

4.760% 1

97.559

4.855% 1

H igh

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.88 percent for the 90-day bills, and 5.05
percent for the 181-day bills.

(7 percent of the am ount of 90-day bills
bid for at the low price was accepted.)

(10 percent of the am ount of 181-day bills
bid for at the low price was accepted.)

T o ta l T en d ers A p plied fo r and A ccepted (By F e d e ra l R eserve D istricts)

90-Day Treasury Bills
Maturing February 25,1971
Boston

............................. ...........

$

38,335,000

Applied for

Accepted

Applied for

District

181-Day Treasury Bills
Maturing May 27,1971

$

38,335,000

$

26,925,000

Accepted

$

20,425,000

...................... ...........

2,153,085,000

1,330,635,000

1,882,290,000

1,046,790,000

Philadelphia .................... .........

40,065,000

24,765,000

9,290,000

9,290,000

Cleveland ........................ .........

49,770,000

49,370,000

49,455,000

28,305,000

...................... .........

16,035,000

16,035,000

8,600,000

8,600,000

A tlanta ............................. .........

48,420,000

46,420,000

30,285,000

24,035,000

........................... .........

188,455,000

187,255,000

161,355,000

155,655,000

St. L o u i s ........................... .........

42,300,000

39,300,000

21,990,000

17,490,000

M inneapolis .................... .........

39,740,000

38,740,000

30,650,000

30,650,000

K ansas City .................... .........

35,960,000

35,960.000

18,670,000

18,670,000

Dallas ............................... .........

29,505,000

21,505,000

23,910,000

14,910,000

156,950,000

71,820,000

206,220,000

25,220,000

New Y ork

Richm ond

Chicago

San Francisco

................

T otal ............... .........

$2,838,620,000

$1,900,140,000“

a Includes $312,455,000 noncompetitive tenders accepted at the average price of 98.810.
b Includes $149,650,000 noncompetitive tenders accepted at the average price of 97.559.




$2,469,640,000

$ 1,400,040,000b