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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 6 6 6 7 T L January 5, 1971 J OFFERING OF TW O SERIES OF TREASURY BILLS ,000,000,000 of 91-Day Bills, Additional Amount, Series Dated October 15, 1970, Due April 15, 1971 (To Be Issued January 14, 1971) $1,400,000,000 of 182-Day Bills, Dated January 14, 1971, Due July 15, 1971 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department, 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 $3,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 14, 1971, in the amount of $3,407,695,000, as follow s: companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued January 14, 1971, in the amount of $2,000,000,000, or thereabouts, representing an additional amount o f bills dated Octo ber 15, 1970, and to mature April 15, 1971 (C U S IP No. 912793 K D 7 ), originally issued in the amount o f $1,404,245,000, the additional and original bills to be freely interchangeable. 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 o f the amount and price range o f accepted bids. Only those submitting competitive tenders will be advised o f the acceptance or rejection thereof. The Secretary o f 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) o f 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 January 14, 1971, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing January 14, 1971. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differ ences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. 182-day bills, for $1,400,000,000, or thereabouts, to be dated January 14, 1971, and to mature July 15, 1971 (C U S IP No. 912793 K Y I ). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without 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 (matu rity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Stand ard time, Monday, January 11, 1971. 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 mul tiples o f $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 o f 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 Under Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 1954, the amount o f 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 o f Treasury bills (othei than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif fei ence 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 i or which the return is made. Treasury Department Circular No. 418 (current revision) and this notice prescribe the^ terms o f the Treasury bills and govern the conditions of their issue. Copies o f the circular may be ob tained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 11, 1971, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked “ Tender for Treasury Bills (W eekly).” Tenders not requiring a deposit may be submitted by telegraph , subject to written confirmation; no tenders may be submitted by telephone. Payment fo r 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. Results o f the last weekly offering o f Treasury bills (91-day bills to be issued January 7, 1971, representing an additional amount o f bills dated October 8, 1970, maturing April 8, 1971; and 182-day bills dated January 7, 1971, maturing July 8, 1971) are shown on the reverse side o f this circular. A lfred H ayes, President. ( over ) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 7, 1971) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing April 8,1971 182-Day Treasury Bills Maturing July 8, 1971 Price A pprox. equiv. annual rate 98.779a 4.830% 97.530b 4.886% L o w ............................ ................ 98.747 4.957% 97.500 4.945% A v era ge...................... ................ 98.756 4.921 % x 97.509 4.927%1 High .......................... ................ a E xcepting one tender o f $400,000. Price A pprox. equiv. annual rate b E xceptin g one tender o f $900,000. 1 These rates are on a bank discount basis. 5.12 percent for the 182-day bills. The equivalent coupon issue yields are 5.05 percent for the 91-day bills, and (3 7% of the amount of 91-day bills bid for at the low price was accepted.) (100% of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders A pplied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing April 8, 1971 Applied fo r District Boston .......................... ........ $ 31,525,000 182-Day Treasury Bills Maturing July 8, 1971 Accepted $ 11,525,000 Applied fo r $ 13,720,000 Accepted $ 3,240,000 .................... ........ 2,520,200,000 1,545,600,000 2,144,885,000 960,885,000 Philadelphia.................. ........ 32,820,000 17,820,000 6,160,000 6,160,000 Cleveland ...................... 33,235,000 33,235,000 44,405,000 26,405,000 R ich m on d...................... ........ 27,365,000 16,665,000 14,430,000 Atlanta .......................... ........ 48,930,000 36,870,000 28,465,000 14,185,000 C h ica go............................ ........ 157,110,000 137,110,000 248,570,000 206,230,000 St. L o u i s .......................... ........ 59,640,000 52,295,000 29,880,000 20,480,000 Minneapolis .................... ........ 27,515,000 21,885,000 20,455,000 11,455,000 Kansas City .................... ........ 28,525,000 28,525,000 13,840,000 10,840,000 Dallas .............................. . . 42,140,000 22,150,000 36,405,000 12,985,000 138,765,000 76,375,000 262,220,000 112,970,000 New York San Francisco ................ To tal ................. ........ $3,147,770,009 $2,000,055,000° c Includes $294,185,000 noncompetitive tenders accepted at the average price of 98.756. d Includes $121,640,000 noncompetitive tenders accepted at the average price o f 97.509. $2,863,435,000 . 14,250,000 $1,400,085,000d
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