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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r I C i r c u l a r N o . 6916 1 M a rc h 2 1 , 1972 J O FFE R IN G OF TW O SERIES O F TREASU RY BILLS $2,300,000,000 of 91-Day Bills, A dditional A m ount, Series D ated Decem ber 30, 1971, Due Ju n e 29, 1972 (To Be Issued M arch 30 ,1 9 7 2 ) $1,800,000,000 of 182-Day Bills, D ated M arch 30, 1972, Due Septem ber 28, 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: The T reasury Departm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate amount of $4,100,000,000, or thereabouts, for cash and in exchange for Treasury bills m aturing M arch 30, 1972, in the amount of $4,107,255,000, as follow s: 91-day bills (to m aturity date) to be issued M arch 30, 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated Decem ber 30, 1971, and to m ature June 29, 1972 (C U S IP No. 912793 N H 5 ), originally issued in the amount of $1,601,370,000 (an additional $204,310,000 was issued on M arch 6, 1972), the additional and original bills to be freely interchangeable. 182-day bills, for $1,800,000,000, or thereabouts, to be dated M arch 30, 1972, and to m ature September 28, 1972 (C U S IP No. 912793 P E 0 ). T he 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 am ount 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 v alu e). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern Standard time, Monday, M arch 27, 1972. Tenders will not be received a t the T reasury Departm ent, W ashington. Each tender must be for 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 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. O thers than banking institutions will not be per mitted to submit tenders except for their own account. Tenders will be received w ithout deposit from incorporated banks and tru st 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 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 after the closing 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 rig h t 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 w ithout 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. Settlem ent for accepted tenders in accordance w ith the bids must be made or completed at the Federal Reserve Bank on M arch 30, 1972, in cash or other im mediately available funds or in a like face amount of T reasury bills m aturing M arch 30, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for dif ferences between the par value of m aturing bills accepted in ex change and the issue price of the new bills. U nder Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount a t 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 owner of T reasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, w hether on o r i g i n a l issue or on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year for which the retu rn is made. T reasury D epartm ent Circular No. 418 (current 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, March 27, 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 March 23, 1972, representing an additional amount of bills dated December 23, 1971, maturing June 22, 1972; and 182-day bills dated March 23, 1972 maturing September 21,1972) are shown on the reverse side of this circular. A l f r ed H a y e s , President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 23, 1972) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing June 22,1972 182-Day Treasury Bills Maturing September 21,1972 A pprox. equiv. annual rate Price Price A pprox. equiv. annual rate High .. 99.019a 3.881 % 97.83 l b 4.290% Low . . . 99.002 3.948% 97.806 4.340% Average 99.009 3.920%x 97.815 4.322%! aExcepting one tender of $830,000. bExcepting one tender of $500,000. 1These rates are on a bank discount basis. The equivalent coupon issue yields are 4.01% fo r the 91-day bills, and 4.48% for the 182-day bills. (19 percent of the amount of 91-day bills bid for at the low price was accepted.) (57 percent of the amount of 182-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 June 22,1972 Accepted Applied fo r D istrict Boston ................................ ........ $ 22,480,000 182-Day Treasury Bills Maturing September 21,1972 $ 12,480,000 Applied for $ 33,850,000 Accepted $ 2,250,000 New Y o r k .......................... ........ 2,932,480,000 1,854,785,000 2,811,460,000 1,556,640,000 Philadelphia ...................... ........ 25,030,000 17,030,000 29,265,000 4,265,000 Cleveland............................ ........ 24,465,000 24,465,000 56,500,000 14,430,000 Richmond .......................... ........ 40,850,000 25,850,000 29,805,000 12,355,000 A tla n ta ................................ . . . . . Chicago .............................. ........ 58,295,000 43,295,000 36,315,000 10,680,000 326,790,000 185,740,000 209,210,000 119,660,000 St. L o u is ............................ ........ M inneapolis........................ ........ 64,485,000 44,765,000 45,265,000 18,215,000 25,785,000 22,165,000 18,415,000 13,915,000 ........ 41,080,000 34,670,000 24,375,000 12,325,000 ........ 35,695,000 17,695,000 30,855,000 8,555,000 ........ 217,900,000 117,550,000 151,245,000 27,395,000 ........ $3,815,335,000 $2,400,490,000° Clncludes $211,165,000 noncompetitive tenders accepted a t the average price of 99.009. <JIncludes $92,295,000 noncompetitive tenders accepted at the average price of 97.815. $3,476,560,000 $ 1,800,685,000d
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