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FE D E R A L R E S E R V E B ANK O F N E W YORK Fiscal Agent of the United States r Circular No. 6 7 3 3 *1 L M ay 18, 1971 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,100,000,000 of 91-Day Bills, Additional Amount, Series Dated February 25,1971, Due August 26,1971 (To Be Issued May 27, 1971) $1,400,000,000 of 183-Day Bills, Dated May 27, 1971, Due November 26, 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 of Treasury bills to the aggregate amount of $3,500,000,000, or thereabouts, for cash and in exchange for Treas ury bills maturing May 27, 1971, in the amount of $3,504,755,000, 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 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. 91-day bills (to maturity date) to be issued May 27, 1971, in the amount of $2,100,000,000, or thereabouts, repre senting an additional amount of bills dated February 25, 1971, and to mature August 26, 1971 (C U S IP No. 912793 L F 1 ), originally issued in the amount of $1,402,070,000 (an additional $200,520,000 was issued April 6, 1971), the additional and original bills to be freely interchangeable. 183-day bills, for $1,400,000,000, or thereabouts, to be dated May 27, 1971, and to mature November 26, 1971 (C U S IP No. 912793 L T 1 ). 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 27, 1971, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing May 27, 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. 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 (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 24, 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 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 Saving time, Monday, May 24, 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-day bills to be issued May 20, 1971, representing an addi tional amount of bills dated February 18, 1971, maturing August 19, 1971; and 182-day bills dated May 20, 1971, maturing November 18, 1971) are shown on the reverse side of this circular. A lfr e d H ayes, President. Please note that the Treasury bills maturing November 26, 1971, will be 183-day bills. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MAY 20, 1971) Range of Accepted Competitive Bids 9 i-Day Treasury Bills Maturing August 19, ig y i Price 182-Day Treasury Bills Maturing November 18, 1971 Approx. equiv. annual rate Price Approx. equiv. annual rate High ...................... .......................... 98.926a 4.249% 97.764 4.423% Low .................... .......................... 98.888 4.399% 97.676 4.597% A verage.............. .......................... 98.900 4.352% 1 97.710 4.530% 1 a Excepting six tenders totaling $3,600,000. 1 These rates are on a bank discount basis. The equivalent coupon issue; yields are 4.47 percent for the 91-day bills, ; 4.71 percent for the 182-day bills. (86 percent of the amount of 182-day bills bid for at the low price was accepted.) (95 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 19, 1971 District Accepted Applied for B oston ...................... .......................... $ 23,210,000 182-Day Treasury Bills Maturing November 18, 1971 $ 13,210,000 Accepted Applied for $ 18,520,000 $ 8,520,000 New York ............................... 2,528,220,000 1,666,820,000 2,072,795,000 1,187,095,000 Philadelphia ........ ..................... 42,665,000 17,665,000 6,580,000 6,580,000 9,505,000 Cleveland ............ ......................... 29,155,000 29,155,000 14,505,000 Richm ond ............... ......................... 9,245,000 9,245,000 3,740,000 3,740,000 Atlanta .................... ......................... 30,080,000 27,080,000 16,665,000 13,525,000 Chicago ................. ......................... 191,040,000 109,290,000 169,370,000 85,970,000 St. Louis ............... ......................... 40,835,000 36,835,000 22,825,000 19,325,000 Minneapolis ........ .................... 12,755,000 12,230,000 3,135,000 3,135,000 Kansas C ity ........ ......................... 26,615,000 24,615,000 18,015,000 18,015,000 Dallas ...................... ......................... 33,855,000 14,755,000 30,675,000 10,395,000 San Francisco ......................... 86,540,000 39,290,000 .71,725,000 34,325,000 ........ ......................... $3,054,215,000 T otal $2,000,190,000b bIncludes $215,840,000 noncompetitive tenders accepted at the average price of 98.900. c Includes $97,460,000 noncompetitive tenders accepted at the average price of 97.710. $2,448,550,000 $1,400,130,000c