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FED ERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States TCircular No. 6 9 5 6 1 June 20, 1972 J k O FFE R IN G OF TWO SERIES OF TREASU RY BILLS $2,300,000,000 of 91-Day Bills, A dditional A m ount, Series Dated M arch 30,1972, Due Septem ber 28,1972 (To Be Issued Ju n e 29, 1972) $1,800,000,000 of 182-Day Bills, Dated Ju n e 29, 1972, Due Decem ber 28, 1972 To A ll Incorporated B anks and T ru st Companies, and Others Concerned, in the Second Federal Reserve D istrict: F o llo w in g is th e te x t of a notice issu ed by th e T re a s u ry D e p a rtm e n t, released a t 4 p.m . to d a y : T he T reasury Departm ent, by this public notice, invites tenders for tw o series of T reasury bills to the aggregate amount of $4,100,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing June 29, 1972, in the amount of $4,106,070,000, 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 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 June 29, 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated M arch 30, 1972, and to m ature September 28, 1972 (C U S IP No. 912793 P E 0 ), originally issued in the amount of $1,804,905,000, the additional and original bills to be freely interchangeable. 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. The Secretary of the T reasury expressly reserves the righ 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 $ 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 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 June 29, 1972, in cash or other im mediately available funds or in a like face am ount of T reasury bills m aturing June 29, 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. 182-day bills for $1,800,000,000, or thereabouts, to be dated June 29,1972, and to m ature December 28, 1972 (C U S IP No. 912793 P S 9 ). 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. T hey 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 Daylight Saving time, Monday, June 26, 1972. Tenders will not be received at the T reasury Department, 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 , 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. 10 0 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 without deposit from incorporated banks and trust 200 0,00 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 owner of T reasury bills (other than life insurance companies) issued hereunder must include in his income ta x return, as ordinary gain or loss, the dif ference between the price paid for the bills, w hether on original 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 C ircular No. 418 (cu rren t revision) and this notice prescribe the term s of the T reasu ry bills and govern the conditions of their issue. Copies of the circular may be ob tained from any Federal Reserve Bank or Branch. T h is B a n k w ill receive te n d e rs fo r b oth series u p to 1 :30 p.m ., E a s te r n D ay lig h t S av in g tim e, M o n d ay , Tune 26 1972, a t th e S ecu rities D e p a rtm e n t of its H e a d Office an d a t its B uffalo B ran ch . T e n d e r fo rm s fo r th e resp ectiv e series a re enclosed. P lea se use th e a p p ro p ria te fo rm s to su b m it te n d e rs a n d r e tu r n th e m in th e en clo sed envelope m a rk e d “ T e n d e r fo r T re a s u ry B ills ( W e e k ly ) .” T e n d e rs n o t re q u irin g a d ep o sit m a y be su b m itte d by te le g ra p h su b je ct to w ritte n c o n firm a tio n ; no te n d e rs m ay be su b m itted by telep h o n e. P ent jor th T aym e reasury b ca n t b ills n o e m d b credit through th T ae y e reasury Tax a L A nd oan ccount. Settlem m st b m in ca or other im edi ent u e ade sh m a a a b funds o in m tely v ila le r aturing T reasury b ills. Results of the last weekly offering of Treasury bills (91-day bills to be issued June 22, 1972 representing an additional amount of bills dated March 23, 1972, maturing September 21, 1972; and 182-day bills dated Tune 22 1972 maturing December 21, 1972) are shown on the reverse side of this circular. ’ 5 A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 22, 1972) R a n g e o f A c c e p te d C o m p e titiv e B id s 91-D yT a reasuryB ills M aturingSeptem 21,1972 ber Price H ig h 182-D yT a reasuryB ills M aturingD ber 21,1972 ecem A pprox. equiv. annual rate Price A pprox. equiv. annual rate ..................................................... 99.016 3 .8 9 3 % 97.822 4 .3 0 8 % L o w ....................................................... 99.000 3 .9 56 % 97.806 4.3 4 0 % A v e r a g e ................................................ 99.008 3.924% * 97.812 4.328% * 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.02% for the 91-day bills, and 4.49% for the 182-day bills. (3 2 p erc en t of th e am o u n t of 91-d ay bills bid fo r a t th e low p rice w as a c ce p te d .) (8 p erc en t of th e am o u n t of 182-day bills bid fo r a t th e low p rice w as ac ce p te d .) T o ta l T e n d e rs A p p lie d f o r a n d A c c e p te d (B y F e d e r a l R e se rv e D is tric ts ) 91-D yT a reasuryB ills M aturingSeptem 21,1972 ber B osto n ....................................... .......... $ 25,135,000 Applied fo r Accepted Applied fo r District 182-D T ay reasuryB ills M aturingD ber 21,1972 ecem $ 8,135,000 $ 21,015,000 Accepted $ 1,745,000 N e w Y o r k ............................... .......... 2,903,140,000 1,870,240,000 2,659,835,000 1,558,215,000 ........................... .......... 15,760,000 15,335,000 23,935,000 3,655,000 C le v e la n d .................................. .......... 22,405,000 22,405,000 34,695,000 13,540,000 ............................... .......... 12,335,000 7,335,000 10,290,000 4,990,000 A t l a n t a ....................................... .......... 53,325,000 35,180,000 43,450,000 17,635,000 C hicago .................................... .......... 263,790,000 148,090,000 280,995,000 109,095,000 S t. L o u i s .................................. .......... 41,475,000 32,255,000 30,435,000 21,705,000 M in n e a p o lis ............................. .......... 26,105,000 13,545,000 23,780,000 6,660,000 K a n s a s C i t y ............................. .......... 35,230,000 25,165,000 25,785,000 12,545,000 D a l l a s ......................................... .......... 31,960,000 10,960,000 31,520,000 9,420,000 S a n F r a n c i s c o ........................ .......... 163,035,000 111,625,000 134,405,000 41,195,000 P h ila d e lp h ia R ich m o n d T otal .................... $3,593,695,000 $2,300,270,000a a Includes $180,135,000 noncompetitive tenders accepted at the average price of 99.008. b Includes $102,445,000 noncompetitive tenders accepted at the average price of 97.812. $3,320,140,000 $1,800,400,000b