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FEDER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States f C ircular No. 6 9 4 6 * 1 l. M av 30, 30. 1972 J May O FFE R IN G OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, A dditional A m ount, Series Dated M arch 9 ,1 9 7 2 , Due Septem ber 7, 1972 (To Be Issued J u n e 8, 1972) $1,800,000,000 of 182-Day Bills, D ated Ju n e 8, 1972, Due Decem ber 7, 1972 To A ll Incorporated B anks and T rust 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 reasury bills to the aggregate am ount of $4,100,000,000, or thereabouts, fo r cash and in exchange fo r T reasury bills m aturing June 8, 1972, in the amount of $4,206,245,000, as fo llo w s: 91-day bills (to m aturity date) to be issued June 8, 1972, in the am ount of $2,300,000,000, o r thereabouts, representing an additional amount of bills dated M arch 9, 1972, and to m ature September 7, 1972 (C U S IP No. 912793 P B 6 ), originally issued in the am ount of $1,800,315,000, the additional and original bills to be freely interchangeable. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated June 8, 1972, and to m ature December 7, 1972 (C U S IP No. 912793 P P 5 ). The bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as h ereinafter 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 value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern D aylight Saving time, Monday, June 5, 1972. Tenders will not be received at the T reasury D epartm 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 fo rth 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 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 am ount of T reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank o r tru st company. Immediately a fte r the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement will be made by the T reasu ry D epartm ent of the amount and price range of accepted bids. O nly those subm itting competitive tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasu ry expressly reserves the right to accept o r 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 w ithout stated price from any one bidder will be accepted in full a t 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 June 8, 1972, in cash o r other im mediately available funds or in a like face am ount of T reasury bills m aturing June 8, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made fo r d if ferences between the p a r 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) o f 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 (o th er than life insurance companies) issued hereunder must 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 amount actually received either upon sale o r redemption at m aturity during the taxable year fo r which the return is made. T reasu ry 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 Daylight Savings time, Monday, June 5, 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 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 immedi ately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued June 1, 1972, representing an additional amount of bills dated August 31, 1971, maturing August 31, 1972; and 182-day bills to be issued June 1, 1972, representing an additional amount of bills dated November 30, 1971, maturing November 30, 1972) are shown on the reverse side of this circular. A lfred H a y e s, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 1, 1972) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing August 31,1972 Price 182-Day Treasury Bills Maturing November 30,1972 A pprox. equiv. annual rate Price A pprox. equiv. annual rate High ............................ .............. 99.059 3.723% 97.951 4.053% Low .............................. .............. 99.041 3.794% 97.906 4.142% A v e ra g e........................ .............. 99.049 3.762%! 97.924 4.106%! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 3.85% fo r the 91-day bills and 4.25% for the 182-day bills. (34 percent of the amount of 91-day bills bid for at the low price was accepted.) (91 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 August 31,1972 D istrict Applied fo r Boston ........................ .......... $ 20,600,000 182-Day Treasury Bills Maturing 'November 30,1972 Accepted $ A pplied fo r 10,600,000 $ 32,110,000 Accepted $ 2,110,000 New York .................. .......... 3,080,000,000 2,027,700,000 2,416,935,000 1,502,685,000 P hiladelphia................ .......... 13,005,000 13,005,000 24,655,000 4,655,000 Cleveland .................... .......... 17,770,000 17,770,000 19,305,000 19,305,000 R ichm ond.................... .......... 6,885,000 6,885,000 3,340,000 2,340,000 Atlanta ........................ .......... 34,525,000 23,525,000 37,990,000 22,790,000 ...................... .......... 202,590,000 85,190,000 237,785,000 103,985,000 St. L o u is ...................... .......... 37,385,000 26,735,000 31,405,000 24,405,000 Minneapolis ................ .......... 31,740,000 12,420,000 33,235,000 20,145,000 Kansas C i t y ................ .......... 27,870,000 17,370,000 20,750,000 10,750,000 Dallas .......................... .......... 36,135,000 17,135,000 28,485,000 7,485,000 160,305,000 42,295,000 87,845,000 79,595,000 Chicago San Francisco ............ T otal ...................... ........ $3,668,810,000 $2,300,630,000 $2,973,840,000 a Includes $156,210,000 noncompetitive tenders accepted at the average price of 99.049. b Includes $80,935,000 noncompetitive tenders accepted at the average price of 97.924. $1,800,250,000b
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