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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