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FED ER A L R ESER VE BANK O F N EW YORK Fiscal Agent of the United States r Circular No. 7 0 3 7 ~ 1 L November 14, 1972 J O FFER IN G OF TWO SERIES OF TREASURY BILLS $2,400,000,000 of 90-Day Bills, A dditional A m ount, Series Dated Aug. 24, 1972, Due Feb. 22, 1973 (To Be Issued N ovem ber 24, 1972) $1,900,000,000 of 181-Day Bills, D ated N ovem ber 24, 1972, Due May 24, 1973 To All Incorporated Banks and Trust Ccnnpanies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice issued by the Treasury Department, released at 4 p.m. to d ay : 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 $4,300,000,000, or thereabouts, fo r cash and in exchange for T reasury bills m aturing November 24, 1972, in the am ount of $4,102,680,000, as follow s: companies and from responsible and recognized dealers in invest ment securities. T enders from others must 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. 90-day bills (to m aturity date) to be issued November 24, 1972, in the am ount of $2,400,000,000, or thereabouts, representing an additional am ount of bills dated A ugust 24, 1972, and to m ature February , 1973 (C U S IP No. 912793 Q G 4), originally issued in the amount of $1,800,540,000, the additional and original bills to be freely interchangeable. 181-day bills, fo r $1,900,000,000, or thereabouts, to be dated November 24, 1972, and to m ature M ay 24, 1973 (C U S IP No. 912793 Q V 1). Immediately a fte r the dosing 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 submitting competitive tenders will be advised of the acceptance o r rejection thereof. T he Secretary of the T reasury expressly reserves the rig h t to accept o r reject any o r all tenders, in whole o r in part, and his action in any such respect shall be final. Subject to these reservations, noncompetitive tenders fo r each issue fo r $ 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 o r completed a t the Federal Reserve Bank on November 24, 1972, in cash or other im mediately available funds o r in a like face amount of T reasury bills m aturing N ovember 24, 1972. Cash and exchange tenders will re ceive equal treatm en t Cash adjustm ents will be made fo r differ ences between the p ar value of m aturing bills accepted in exchange and the issue price o f the new bills. 2 2 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 amount will be payable w ithout in terest 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., E astern Stand ard time, Monday, November 20, 1972. T enders will not be received at the T reasury Departm ent, W ashington. E ach tender m ust be fo r a minimum of $10,000. Tenders over $10,000 m ust be in mul tiples of $5,000. In the case of competitive tenders the price offered must be expressed on the basis of , w ith not m ore than three decimals, e.g., 99.925. Fractions may not be u sed 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. 10 0 Banking institutions generally m ay submit tenders fo r account o f customers, provided the names of the customers are set fo rth in such tenders. O thers than banking institutions will not be per m itted to submit tenders except fo r their own account Tenders will be received w ithout 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 am ount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. A ccording^, the owner of Treasury bills (other than life insurance companies) issued hereunder must include in his income tax return, as ordinary gain o r loss, the d if ference between the price paid fo r the bills, w hether on original issue o r 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 reasury D epartm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the term s o f the T reasury bills and govern the conditions o f their issue. Copies of the circular may be ob tained from any Federal Reserve Bank o r Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 20, 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 T reasury Bills (W eekly).” Tenders not requiring a deposit may be submitted by telegraph, subject to w ritten confirmation; no tenders may be submitted by telephone. Paym ent fo r the Treasury bills cannot be made by credit through the Treasury T a x and Loan Account. Settlem ent must be made in cash or other immediately available fu n d s or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued November 16, 1972, representing an additional amount of bills dated August 17, 1972, maturing February 15, 1973; and 182-day bills dated November 16, 1972, maturing May 17, 1973) are shown on the reverse side of this circular. A lfred H a y es, President. P lease n ote that the cu rren t offering is fo r 90-day and 181-day T reasu ry bills. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 16, 1972) Range of Accepted C om petitive Bids 91-Day Treasury Bills Maturing February 1 5 ,1 9 7 3 182-Day Treasury Bills Maturing M ay 1 7 ,1 9 7 3 P rice A pprox. equiv. annual rate High _____ _________ _________ 98.802 4.739% 97.450 5.044% L o w ............................................. . 98.789 4.791% 97.431 5.082% A verage......................................... 98.793 4.775%1 97.437 5.070%! 1 These rates are on a bank discount basis. 5.28 p ercen t for th e 182-day bills. A pprox. equiv. annual rate Price T he equivalent coupon issue yields are 4.90 percent fo r the 91-day bills, and (49 percent of the amount of 91-day bills bid for at the low price was accepted.) (95 percent of the amount o f 182-day bills bid for at the low price was accepted.) T otal T enders A pplied for and Accepted (By F ederal Reserve Districts) 91-Day Treasury Bills ^ Maturing February 1 5 ,1 97 3 Applied fo r District ................ $ 27,975,000 182-Day Treasury Bills Maturing M ay 17,1 97 3 Accepted $ 13,465,000 Applied fo r $ 20,830,000 Accepted $ 4,830,000 New Y o r k ............... ................ 3,243,740,000 2,052,620,000 3,107,000,000 1,643,050,000 Philadelphia............. ...... .......... 35,010,000 15,010,000 35,685,000 6,685,000 Cleveland ................. ................ 19,755,000 19,740,000 34,335,000 9,235,000 Richm ond................. ................ 42,660,000 18,640,000 61,205,000 24,955,000 Atlanta ..................... ................ 29,970,000 16,250,000 13,215,000 8,630,000 Chicago ................... ................ 270,800,000 92,170,000 301,275,000 53,390,000 St. Louis ................. ................ 38,050,000 23,030,000 46,085,000 25,535,000 Minneapolis ............. ................ 44,730,000 33,965,000 25,180,000 9,180,000 28,240,000 18,380,000 22,225,000 10,225,000 8,765,000 96,320,000 Kansas C ity ............. ............... Dallas ........................ ............... 34,105,000 11,840,000 39,465,000 San Francisco ......... ............... 110,790,000 86,980,000 199,820,000 T o ta l................. ............... $3,925,825,000 $2,402,090,000a $3,906,320,000 a In clu d es $169,890,000 non co m p etitiv e ten d ers accepted a t th e av erag e price of 98.793. b In clu d es $92,100,000 noncom p etitiv e te n d e rs accepted at th e av erag e price of 97.437. $1,900,800,000b
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