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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States rCircular No. 6 6 7 2 ~ l I January 19, 1971 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,000,000,000 of 91-Day Bills, Additional Amount, Series Dated October 29, 1970, Due April 29, 1971 (To Be Issued January 28, 1971) $1,400,000,000 of 182-Day Bills, Dated January 28, 1971, Due July 29, 1971 To A ll 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 o f Treasury bills to the aggregate amount o f $3,400,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing January 28, 1971, in the amount o f $3,401,640,000, as follow s: 91-day bills (to maturity date) to be issued January 28, 1971, in the amount o f $2,000,000,000, or thereabouts, representing an additional amount o f bills dated Octo ber 29, 1970, and to mature April 29, 1971 (C U S IP No. 912793 K F 2 ), originally issued in the amount of $1,400,925,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,400,000,000, or thereabouts, to be dated January 28, 1971, and to mature July 29, 1971 (C U SIP No. 912793 L A 2 ). The bills o f 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 o f $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 Stand ard time, Monday, January 25, 1971. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in mul tiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis o f 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 o f 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 o f 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. 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 fo r $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 fo r accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on January 28, 1971, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing January 28, 1971. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made fo r differ ences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. 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, re deemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner o f Treasury bills (other than life insurance companies) issued hereunder must j1*/* *ncome ta-x 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 fo r 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 o f 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 25, 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 of the last weekly offering o f Treasury bills (91-day bills to be issued January 21, 1971, representing an additional amount o f bills dated October 22, 1970, maturing April 22, 1971; and 182-day bills dated January 21, 1971, maturing July 22, 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 21, 1971) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 22,1971 182-Day Treasury Bills Maturing July 22,1971 Price Approx. equiv. annual rate .................................... 98.952 4.146% 97.896 4.162% L o w ....................................... 98.926 4.249% 97.838 4.276% Average 98.935 4.213%J 97.855 4.243%1 High .............................. A pprox. equiv. annual rate Price 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.32% for the 9t-day bills, and 4.40% for the 182-day bills. (98% of the amount o f 91-day bills bid for at the low price was accepted.) (9 % of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing April 22,1971 Applied fo r District Boston ........................ .......... New York .................. .......... $ 24,910,000 182-Day Treasury Bills Maturing July 22,1971 Applied fo r Accepted $ 14,910,000 $ 12,405,000 Accepted $ 2,405,000 2,287,200,000 1,402,260,000 1,879,925,000 Philadelphia............................ Cleveland .................... .......... 36,095,000 21,095,000 26,965,000 26,965,000 38,075,000 37,155,000 45,735,000 45,735,000 R ich m on d.................... .......... Atlanta ........................ .......... 25,455,000 17,855,000 8,150,000 8,150,000 52,140,000 48,790,000 27,760,000 21,355,000 C h icago........................ .......... St. L o u is ........................ .......... 201,850,000 155,150,000 188,020,000 115,100,000 65,085,000 59,085,000 44,610,000 34,610,000 Minneapolis .................. .......... Kansas City .................. .......... 42,785,000 42,785,000 34,710,000 34,710,000 48,020,000 48,020,000 21,910,000 21,900,000 Dallas ............................ ........ San Francisco .............. 40,320,000 28,320,000 30,245,000 21,425,000 132,800,000 125,700,000 122,685,000 68,685,000 .................. .......... $2,994,735,000 T otal $2,001,125,000 a Includes $309,940,000 noncompetitive tenders accepted at the average price of 98.935. b Includes $123,145,000 noncompetitive tenders accepted at the average price o f 97.855. $2,443,120,000 999,175,000 $1,400,215,000b
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