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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States No. 6 7 5 9 "I July 6, 1971 J [Circular OFFERING OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated April 15, 1971, Due October 14, 1971 (To Be Issued July 15, 1971) $1,600,000,000 of 182-Day Bills, Dated July 15, 1971, Due January 13, 1972 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 T reasury Department, released at 4 p.m. to d ay : The T reasury Departm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount of $3,900,000,000, or thereabouts, fo r cash and in exchange fo r T reas ury bills m aturing July 15, 1971, in the amount of $3,809,920,000, as follow s: companies and from responsible and recognized dealers in invest ment securities. Tenders from others m ust be accompanied by payment of 2 percent of the face amount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or tru st company. 91-day bills (to m aturity date) to be issued July 15, 1971, in the amount of $2,300,000,000, or thereabouts, represent ing an additional am ount of bills dated A pril 15, 1971, and to m ature October 14, 1971 (C U S IP No. 912793 L M 6), originally issued in the am ount of $1,600,225,000, the additional and original bills to be freely inter changeable. Immediately a fte r the dosing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the T reasury D epartm ent of the amount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the right to accept or reject any o r all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r 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) of accepted competi tive bids fo r the respective issues. Settlem ent fo r accepted tenders in accordance w ith the bids must be made or completed at the Federal Reserve Bank on July IS, 1971, in cash or other im mediately available funds or in a like face amount of T reasury bills_ m aturing July 15, 1971. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made fo r d if ferences between the par value of m aturing bills accepted in ex change and the issue price of the new bills. 182-day bills, fo r $1,600,000,000, or thereabouts, to be dated July 15, 1971, and to m ature January 13, 1972 (C U S IP No. 912793 M H 6 ). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at m aturity their face amount will be payable w ithout 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 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving time, Monday, July 12, 1971. Tenders will not be received at the T reasury Departm ent, W ashington. E ach 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 form s and forw arded in the special enve lopes which will be supplied by Federal Reserve Banks o r Branches on application therefor. Banking institutions generally may submit tenders fo r account of customers, provided the names of the customers are set forth in such tenders. O thers than banking institutions will not be per mitted to submit tenders except fo r their own account Tenders will be received w ithout deposit from incorporated banks and trust U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of 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 ow ner of T reasury bills (other than life insurance companies) issued hereunder m ust include in his income tax return, as ordinary gain or loss, the d if ference between the price paid fo r the bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year fo r which the return is made. T reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the term s of the T reasury 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., E astern Daylight Saving time, Monday, July 12, 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 T reasury Bills (W eekly).” Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlem ent 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 July 8, 1971, representing an addi tional amount of bills dated April 8, 1971, m aturing October 7, 1971; and 182-day bills dated July 8, 1971, m aturing January 6, 1972) are shown on the reverse side of this circular. A lfred H ayes, President. (o v e r ) RESULTS OF LAST W EE K LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JULY 8, 1971) R ange o f A ccepted Com petitive B ids 91-Day Treasury Bills Maturing October 7,1971 182-Day Treasury Bills Maturing January 6,1972 Price A pprox. equiv. annual rate Price A pprox. equiv. annual rate High ............................ .............. 98.652a 5.333% 97.200b 5.538% Low .............................. .............. 98.598 5.546% 97.140 5.657% ...................... .............. 98.618 5.467%x 97.162 5.614%* Average bExcepting one tender of $300,000. a Excepting one tender of $400,000. 1 These rates are on a bank discount basis. 5.87 percent for the 182-day bills. The equivalent coupon issue yields are 5.64 percent for the 91-day bills, and (31 percent of the amount of 182-day bills bid for at the low price was accepted.) (11 percent of the amount of 91-day bills bid for at the low price was accepted.) T o tal Tenders A p p lie d for and Accepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing October 7,1971 Accepted Applied fo r District Boston ........................ .......... $ 22,310,000 182-Day Treasury Bills Maturing January 6,1972 $ 11,810,000 Applied fo r $ 23,600,000 Accepted $ 3,100,000 New York .................. .......... 2,727,145,000 1,787,895,000 2,645,605,000 1,314,255,000 Philadelphia................ .......... 40,365,000 20,365,000 20,160,000 5,160,000 Cleveland .................... .......... 52,550,000 43,550,000 32,395,000 24,025,000 R ich m on d.................... 16,780,000 16,780,000 24,980,000 12,980,000 Atlanta ........................ .......... 38,110,000 34,110,000 24,000,000 13,200,000 ...................... .......... 166,595,000 166,595,000 168,705,000 111,975,000 St. Louis .................... .......... 49,195,000 45,195,000 25,295,000 13,795,000 Minneapolis ................ .......... 17,880,000 17,880,000 12,725,000 10,725,000 Kansas C i t y ................ .......... 38,185,000 38,185,000 13,720,000 11,420,000 Dallas .......................... .......... 36,485,000 31,485,000 35,180,000 13,800,000 127,360,000 86,360,000 267,640,000 65,630,000 Chicago San Francisco ............ T o t a l ..................... ........ $3,332,960,000 $2,300,210,000° $3,294,005,000 c Includes $248,370,000 noncompetitive tenders accepted at the average price o f 98.618. d Includes $121,525,000 noncompetitive tenders accepted at the average price o f 97.162. $1,600,065,000d
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