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FED ERAL R ESERVE BANK O F N E W YORK
Fiscal Agent of the United States
r C ircular No. 6 9 7 7 1
L
J u ly 25, 1972
J

OFFERING OF TWO SERIES OF TREASURY BILLS
,300,000,000 of 91-Day Bills, Additional Amount, Series Dated May 4, 1972, Due November 2, 1972
(To Be Issued August 3, 1972)
$1,800,000,000 of 182-Day Bills, Dated August 3, 1972, Due February 1, 1973
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

F o llow in g is the text of a notice issued by the Treasury D epartm ent, released at 4 p.m. today
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$4,100,000,000, or thereabouts, for cash and in exchange for Treasury
bills maturing August 3, 1972, in the amount of $3,901,285,000, as
follow s:
91-day bills (to maturity date) to be issued August 3,
1972, in the amount of $2,300,000,000, or thereabouts,
representing an additional amount of bills dated May
4, 1972, and to mature November 2, 1972 (C U S IP
No. 912793 P K 6), originally issued in the amount of
$1,800,630,000, the additional and original bills to be
freely interchangeable.
182-day bills, for $1,800,000,000, or thereabouts, to be dated
August 3, 1972, and to mature February 1, 1973
(C U S IP No. 912793 Q D 1).
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided,
and at maturity their face amount will be payable without 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 (maturity
value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Monday, July 31, 1972. Tenders will not be received
at the Treasury Department, Washington. Each tender must be
for a minimum of $10,000. Tenders over $10,000 must be in multi­
ples 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 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. Others 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

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 Treasury bills applied
for, unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Only those submitting
competitive tenders will be advised of the acceptance or rejection
thereof. The Secretary of the Treasury expressly reserves the
right 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 without 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. Settlement for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on August 3, 1972, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing August 3, 1972. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for dif­
ferences between the par value of maturing bills accepted in ex­
change and the issue price of the new bills.
Under 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 Treasury
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, whether on original
issue or on subsequent purchase, and the amount actually received
either upon sale or redemption at maturity during the taxable year
for which the return is made.
Treasury Department Circular No. 418 (current revision) and
this notice prescribe the terms of the Treasury 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 Bank w ill receive tenders for both series up to 1 :30 p.m., Eastern D aylight Saving tim e, M onday, July 31,
1972, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender form s for the respective
series are enclosed. P lease use the appropriate form s to submit tenders and return them in the enclosed envelope
marked “T ender for T reasury B ills ( W e e k ly ) .” T enders not requiring a deposit m ay be subm itted by telegraph,
subject to w ritten confirm ation; no tenders m ay be subm itted 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 July 27, 1972, representing an
additional amount of bills dated April 27, 1972, maturing October 26, 1972; and 182-day bills dated July 27, 1972,
maturing January 25, 1973) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
( ov er)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JULY 27, 1972)

Range of Accepted Competitive Bids
9 1-Day Treasury Bills
Maturing October 26, 1972
Price

H igh

....................................................

182-Day Treasury Bills
Maturing January 25, 1973

Approx. equiv.
annual rate

Approx. equiv.
annual rate

Price

98.990

3.996%

97.688

4.573%

L ow .........................................................

98.973

4.063 %

97.673

4.603%

A v e r a g e .................................................

98.977

4.0 4 7 % 1

97.682

4.585% !

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.15% for the 91-day bills, and 4.76% for the
182-day bills.

(7 9 percent of the am ount of 9 1 -day bills
bid for at the low price w as accepted.)

(1 7 percent of the am ount of 182-day bills
bid for at the low price w as accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
9 1-Day Treasury Bills
Maturing October 26, 1972
D istrict

$

20,480,000

$

5,480,000

Accepted

Applied for

Accepted

Applied for

.............................. .............

Boston

182-Day Treasury Bills
Maturing January 25, 1973
$

36,000,000

$

1,000,000

N ew Y ork ....................... .............

2,996,935,000

1,901,740,000

2,958,015,000

1,572,715,000

Philadelphia ..................... .............

28,050,000

18,050,000

30,915,000

4,665,000

Cleveland ......................... .............

25,305,000

25,095,000

56,815,000

11,065,000

Richm ond ......................... .............

8,640,000

6,640,000

20,175,000

9,175,000

A tlanta .............................. .............

37,730,000

23,655,000

26,760,000

6 ,560,000

128,755,000

266,690,000

41,790,000
8,320,000

Chicago

............................ .............

265,770,000

St. L ouis ......................... .............

32,980,000

19,980,000

24,820,000

M inneapolis ..................... .............

31,605,000

8,605,000

38,220,000

14,840,000

K ansas City ..................... .............

36,885,000

19,915,000

22,640,000

8,340,000

D allas ................................. .............

36,030,000

13,925,000

29,400,000

7,150,000

San Francisco ................ ............

201,645,000

128,545,000

196,790,000

114,540,000

..................... ............

$3,722,055,000

T

otal

$ 2 ,3 0 0 ,3 8 5 ,0 0 0

$3,707,240,000

alncludes $167,665,000 noncompetitive tenders accepted at the average price of 98.977.
^Includes $90,155,000 noncompetitive tenders accepted at the average price of 97.682.




$1,800,160,000b