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FED ER AL RESERVE BANK O F N EW YORK Fiscal Agent of the United States rCircular No. 6 9 0 1 1 U February 22, 1972 J O FFE R IN G OF TW O SERIES OF TREASU RY BILLS $2,400,000,000 of 91-Day Bills, A dditional A m ount, Series D ated D ecem ber 2, 1971, Due Ju n e 1, 1972 (To Be Issued M arch 2, 1972) $1,800,000,000 of 182-Day Bills, A dditional A m ount, Series D ated A ugust 31, 1971, Due A ugust 31, 1972 (To Be Issued M arch 2, 1972) 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: T he T reasury Departm ent, by this public notice, invites tenders fo r two series of T reasu ry bills to the aggregate am ount of $4,200,000,000, or thereabouts, fo r cash and in exchange fo r T reasury bills m aturing M arch 2, 1972, in the am ount of $3,901,360,000, as follow s: 91-day bills (to m aturity date) to be issued M arch 2, 1972, in the am ount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated Decem ber 2, 1971, and to m ature June 1, 1972 (C U S IP No. 912793 N D 4 ), originally issued in the amount of $1,600,870,000, the additional and original bills to be freely interchangeable. 182-day bills (to m aturity date) to be issued M arch 2, 1972, in the amount of $1,800,000,000, o r thereabouts, representing an additional amount of bills dated A ugust 31, 1971, and to m ature A ugust 31, 1972, (C U S IP No. 912793 N K 8), originally issued in the amount of $1,199,890,000 (an additional $500,275,000 was issued November 30, 1971), the additional and original bills to be freely interchangeable. 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 Standard time, Monday, February 28, 1972. Tenders will not be received at the T reasury Departm ent, W ashington. Each tender must be fo r a minimum of $10,000. Tenders over $10,000 must be in m ulti ples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of 100, w ith 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 envelopes which will be supplied by Federal Reserve Banks or 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 m itted to submit tenders except fo r their own account. Tenders will be received w ithout deposit from incorporated banks and trust companies and from responsible and recognized dealers in invest m ent securities. T enders from others m ust be accompanied by payment of 2 percent of the face am ount 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. Im mediately a fte r the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following w hich public annoucement will be made by the T reasury D epartm ent of the am ount and price range of accepted bids. Only those subm itting competitive tenders will be advised of the acceptance or rejection thereof. The S ecretary of the T reasury expressly reserves the n £, , to accept o r 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 fo r each issue fo r $200,000 or less w ithout stated price from any one bidder will be accepted in • u 'j r ave.rage price (in three decimals) of accepted competi tive bids fo r the respective issues. Settlem ent fo r accepted tenders m accordance w ith the bids must be made or completed at the re d e ra l Reserve B ank on M arch 2, 1972, in cash or other im mediately available funds o r in a like face amount of T reasury bills m aturing M arch 2, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made fo r difierences between the par value of m aturing bills accepted in exchange and the issue price of the new bills. r j ef n ^ ec^ ons 4 5 4(b) and 1221(5) of the Internal Revenue j 1954, the am ount 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, th e owner of T reasury bills (other than life insurance companies) issued hereunder must include m his income tax return, as ordinary gain o r loss, the d if ference between the price paid fo r the bills, w hether on original issue o r on subsequent purchase, and the am ount actually received either upon sale o r 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., Eastern Standard time, Monday, February 28, 1972, 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 con firmation; 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 February 24, 1972, representing an additional amount of bills dated November 26, 1971, maturing May 25, 1972; and 182-day bills dated February 24 1972, maturing August 24, 1972) 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 FEBRUARY 24, 1972) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing August 24,1972 91-Day Treasury Bills Maturing May 25,1972 High ... Price A pprox. equiv. annual rate Price A pprox. equiv. annual rate 99.214 3.109% 98.235 3.491% 3.525% 3.513%^ L o w ...... 99.196 3.181% 98.218 Average 99.205 3.145%x 98.224 1These rates are on a bank discount basis. T he equivalent coupon issue yields are 3.22% fo r the 91-day bills, and 3.64% for the 182-day bills. (71 percent of the amount of 182-day bills bid for at the low price was accepted.) (78 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 May 25,1972 Boston ........................... .......... Accepted Applied fo r D istrict $ 23,325,000 182-Day Treasury Bills Maturing August 24,1972 $ 13,325,000 Applied fo r $ 18,910,000 Accepted $ 860,000 3,300,450,000 2,037,970,000 3,172,590,000 1,631,430,000 28,840,000 13,740,000 10,070,000 3,855,000 25,595,000 25,510,000 15,780,000 5,130,000 7,610,000 7,610,000 6,725,000 1,725,000 35,000,000 14,000,000 35,480,000 6,300,000 242,455,000 169,355,000 276,665,000 101,665,000 St. Louis ....................... .......... Minneapolis ................... .......... 32,705,000 22,485,000 16,375,000 7,375,000 31,980,000 22,880,000 43,800,000 6,200,000 Kansas C ity ................... ....... 33,110,000 20,200,000 19,740,000 5,280,000 35,420,000 13,420,000 27,275,000 5,175,000 109,125,000 39,785,000 143,290,000 26,590,000 New Y o r k ..................... .......... Philadelphia................... .......... Cleveland ....................... .......... Richm ond....................... .......... Atlanta ........................... .......... Chicago ......................... .......... San Francisco ............... T o ta l....................... .......... $3,905,615,000 $2,400,280,000" $3,786,700,000 ^Includes $172,380,000 noncompetitive tenders accepted at the average price of 99.205. ^Includes $64,430,000 noncompetitive tenders accepted at the average price of 98.224. $1,801,585,000b
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