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F E D E R A L R E S E R V E B A N K O F N E W YORK Fiscal Agent of the United States r Circular No. 6 7 0 7 " 1 I March 30, 1971 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,900,000,000 of 91-Day Bills, Additional Amount, Series Dated January 7, 1971, Due July 8, 1971 (To Be Issued April 8, 1971) $1,600,000,000 of 182-Day Bills, Dated April 8, 1971, Due October 7, 1971 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: 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 $3,500,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing April 8, 1971, in the amount o f $3,404,445,000, as follow s: 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 of payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued April 8, 1971, in the amount o f $1,900,000,000, or thereabouts, repre senting an additional amount o f bills dated January 7, 1971, and to mature July 8, 1971 (C U S IP No. 912793 K X 3 ), originally issued in the amount o f $1,401,705,000, (an additional amount o f approximately $200,000,000 will be issued on April 6 ), the additional and original bills to be freely interchangeable. 182-day bills, for $1,600,000,000, or thereabouts, to be dated April 8, 1971, and to mature October 7, 1971 (C U S IP No. 912793 L L 8 ). 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 April 8, 1971, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing April 8, 1971. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for d if ferences between the par value o f maturing bills accepted in ex change and the issue price o f the new bills. 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 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 Stand ard time, Monday, April 5, 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 multiples o f $5,000. In the case o f 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 o f 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 Under Sections 454(b) and 1221(5) o f the Internal Revenue Code of 1954, the amount of discount at which bills issued hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from considera tion as capital assets. Accordingly, the owner o f 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 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, April 5, 1971, at the Securities Department o f 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 April 1, 1971, representing an additional amount of bills dated December 31, 1970, maturing July 1, 1971; and 182-day bills to be issued April 1, 1971, representing an additional amount of bills dated September 30, 1970, maturing September 30, 1971) are shown on the reverse side o f this circular. A lfred H ayes, President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 1, 1971) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 1,1971 Price Approx. equiv. annual rate 182-Day Treasury Bills Maturing September 30,1971 Price Approx. equiv. annual rate High .......................... ................ 99.130 3.442% 98.160b 3.640% Low .......................... ................ 99.090 3.600% 98.114 3.731% 99.110 3.521%1 98.132 3.695 % 1 A v e ra g e ...................... ................ a Excepting one tender o f $1,300,000. b Excepting one tender o f $100,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 3.61 percent for the 91-day bills, and 3.83 percent for the 182-day bills. (9 percent of the amount o f 91-day bills bid for at the low price was accepted.) (47 percent 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 July 1,1971 Accepted Applied fo r District .......................... .......... New York .................... .......... Philadelphia.................. .......... Boston Cleveland ...................... .......... R ich m on d ...................... .......... Atlanta .......................... .......... C h ica go.......................... .......... St. Louis ...................... .......... Minneapolis .................. .......... $ 19,780,000 182-Day Treasury Bills Maturing September 30,1971 $ 9,780,000 A pplied fo r $ 12,510,000 Accepted $ 2,510,000 2,250,845,000 1,362,295,000 2,235,700,000 1,332,300,000 33,975,000 19,975,000 6,290,000 6,290,000 35,690,000 35,690,000 20,205,000 15,205,000 11,830,000 11,830,000 13,300,000 13,300,000 38,150,000 38,150,000 21,570,000 12,570,000 229,100,000 199,100,000 162,510,000 127,630,000 56,610,000 55,610,000 24,375,000 19,375,000 32,155,000 27,335,000 21,720,000 10,720,000 32,350,000 32,350,000 14,015,000 14,015,000 Kansas C i t y .................. .......... Dallas ............................ ........ 29,750,000 21,750,000 26,230,000 9,230,000 San Francisco .............. ........ 114,660,000 86,550,000 113,960,000 36,860,000 ........ $2,884,895,000 T otal ............... $1,900,415,000c c Includes $239,465,000 noncompetitive tenders accepted at the average price of 99.110. d Includes $103,705,000 noncompetitive tenders accepted at the average price of 98.132. $2,672,385,000 $1,600,005,000d
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