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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
Circular No. 6 7 2 6 1
May 4, 1971
J

[
O FFERIN G OF TW O SERIES OF TR E A SU R Y BILLS

$2,000,000,000 o f 91-Day Bills, Additional Amount, Series Dated February 11,1971, Due August 12,1971
(T o Be Issued May 13, 1971)
$1,400,000,000 o f 182-Day Bills, Dated May 13, 1971, Due November 11, 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 Treas­
ury bills maturing May 13, 1971, in the amount of $3,403,620,000,
as follow s:
91-day bills (to maturity date) to be issued May 13, 1971,
in the amount of $2,000,000,000, or thereabouts, repre­
senting an additional amount of bills dated February 11.
1971, and to mature August 12, 1971 (C U S IP No. 912793
LD 6), originally issued in the amount of $1,400,250,000
(an additional $200,520,000 was issued April 6, 1971), the
additional and original bills to be freely interchangeable.
182-day bills, for $1,400,000,000, or thereabouts, to be dated
May 13, 1971, and to mature November 11. 1971 (C U S IP
No. 912793 L R 5).
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 Daylight
Saving time, Monday, May 10, 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
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
of 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 May 13, 1971, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing May 13, 1971. 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 ex­
change 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 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 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 ob­
tained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Savings time, Monday, May 10,
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 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.
Results of the last weekly offering of Treasury bills (91-d ay bills to be issued M ay 6, 1971, representing an addi­
tional amount of bills dated February 4, 1971, maturing August 5, 197 1 ; and 182-day bills dated M ay 6, 1971, matur­
ing November 4, 1971) are shown on the reverse side of this circular.




A

lfred

H ayes,

President.

(

over

)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES
TO BE ISSUED MAY 6, 1971)

Range of Accepted Competitive Bids

91 -Day Treasury Bills
Maturing August 5,1971
Price

182-Day Treasury Bills
Maturing November 4,1971

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

H i g h ............................ ....................

99.032

3.829%

97.900

4.154%

Low

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

99.015

3.897%

97.872

4.209%

Average ...................... ....................

99.023

3.865%1

97.886

4.182%!

1 These rates are on a bank discount basis. The equivalent coupon issue yields ar<; 3.97 percent for the 91-day bills and 4.3^
percent for the 182-day bills.

(92 percent of the amount of 182-day bills
bid for at the low price was accepted.)

(100 percent of the amount of 91-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 August 5, 1971
Boston

Accepted

Applied for

District

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

$

13,660,000

182-Day Treasury Bills
Maturing November 4.1971

$

13,660,000

Applied for

$

13,940,000

Accepted

$

3,940,000

New York .................. ..........

2,626,290,000

1,653,790,000

2,283,050,000

1,193,000.000

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

42,135,000

27,135,000

19,170,000

9,150,000

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

29,865,000

28,605,000

30,605,000

29,705,000

R ichm ond.................... ..........

15,585,000

15,585,000

32,230,000

11,230,000

Atlanta ........................ ..........

41,535,000

20,915,000

25,985,000

15,845,000
63,870,000

C hicago........................ ..........

180,955,000

83,955,000

190,470,000

St. Louis .................... ..........

56,705,000

44,305,000

40,200,000

28,870,000

Minneapolis ................ ..........

19,500,000

11,500,000

15,990,000

3,990,000

Kansas C it y ................ ..........

29,735,000

24,760,000

15,095,000

9,375.000

..........

38,065,000

15,865,000

32,260,000

10,060,000

125,560,000

60,160,000

107,565,000

21.365,000

D allas

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

San Francisco ............
T o t a l ............

..........

$3,219,590,000

$2,000,235,000a

a Includes $240,270,000 noncompetitive tenders accepted at the average price of 99.023.
b Includes $99,895,000 noncompetitive tenders accepted at the average price of 97.886.




$2,806,560,000

$ 1,400,400,000b


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102