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FE D ERAL R ESERVE BANK O F N E W YORK Fiscal Agent of the United States r C ircular No. 6 9 8 1 1 ** A ugust 1, 1972 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated May 11, 1972, Due November 9, 1972 (To Be Issued August 10, 1972) $1,800,000,000 of 182-Day Bills, Dated August 10, 1972, Due February 8, 1973 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: F ollow in g is the text of a notice issued by the Treasury Departm 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 10, 1972, in the amount of $3,900,925,000, as follow s: 91-day bills (to maturity date) to be issued August 10, 1972, in the amount of $2,300,000,000, or thereabouts, representing an additional amount of bills dated May 11, 1972, and to mature November 9, 1972 (C U S IP No. 912793 P L 4), originally issued in the amount of $1,800,365,000, the addtional and original bills to be freely interchangeable. 182-day bills, for $1,800,000,000, or thereabouts, to be dated August 10, 1972, and to mature February 8, 1973 (C U S IP No. 912793 Q E 9). 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, August 7, 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 10, 1972, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing August 10, 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 :3 0 p.m ., Eastern D aylight Saving time, M onday, A ugu st 7, 1972, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. Tender 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. Paym ent for the Treasury bills cannot be made by credit through the Treasury T ax and Loan Account. Settlem ent must be made in cash or other im m edi ately available funds or in m aturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued August 3, 1972, representing an additional amount of bills dated May 4, 1972, maturing November 2, 1972; and 182-day bills dated August 3, 1972, maturing February 1, 1973) are shown on the reverse side of this circular. A lfred H a y es, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 3, 1972) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing February 1 , 1973 p i-Day Treasury Bills Maturing November 2, 1972 Price H ig h A pprox. equiv. annual rate Approx. equiv. annual rate Price ...................................................... 99.053 3.746% 97.848 4.257% L ow ......................................................... 99.032 3.829% 97.810 4.332% A v e r a g e ................................................. 99.041 3.794% ! 97.827 4.298% ! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 3.88% for the 91-day bills, and 4.45% for the 182-day bills. (35 percent of the amount of 91-day bills bid for at the low price w as accepted.) (3 5 percent of the amount 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 November 2, 1972 D istrict Boston Applied for .............................. ............. $ 9,475,000 182-Day Treasury Bills Maturing February 1 , 1973 $ 9,475,000 Accepted Applied for Accepted $ 1,270,000 $ 1,270,000 N e w Y ork ....................... ............. 3,080,925,000 1,972,425,000 2,610,545,000 1,480,550,000 P hiladelphia ..................... ............. 9,210,000 9 ,210,000 25,725,000 5,725,000 Cleveland .......................... ............. 22,465,000 22,465,000 17,070,000 17,070,000 Richm ond .......................... ............. 6,055,000 6,055,000 3,405,000 3,405,000 A tlanta .............................. ............. 28,540,000 16,540,000 3 0,300,000 16,810,000 ............................ ............. 221,675,000 111,190,000 230,165,000 119,300,000 St. L ouis ......................... ............. 47,625,000 38,975,000 41,580,000 30,105,000 M inneapolis ..................... ............. 28,540,000 2 3,540,000 3 0,320,000 25,320,000 K ansas City ..................... ............. 28,465,000 17,650,000 2 2,530,000 12,530,000 D allas ................................. ............. 31,300,000 9,300,000 29,770,000 7,770,000 San F rancisco ................ ............. 102,640,000 63,220,000 117,175,000 80,175,000 T o tal ................... ............. $3,616,915,000 C hicago $2,300,045,000® $3,159,855,000 a-Includes $158,765,000 noncompetitive tenders accepted at the average price of 99.041. b Includes $83,935,000 noncompetitive tenders accepted at the average price of 97.827. $1,800,030,0 0 0 b
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