The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 7 0 4 0 ' U November 21, 1972 . O FFER IN G OF TWO SERIES OF TREASURY BILLS $2,400,000,000 of 91-Day Bills, A dditional A m ount, Series Dated A ugust 31, 1972, Due M arch 1, 1973 (To Be Issued N ovem ber 30, 1972) $1,900,000,000 of 182-Day Bills, A dditional A m ount, Series D ated May 31, 1972, Due May 31, 1973 (To Be Issued N ovem ber 30, 1972) To A ll Incorporated B anks and T rust Companies, and O thers 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: The T reasury Departm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate amount of $4,300,000,000, or thereabouts, fo r cash and in exchange fo r T reasury bills m aturing November 30, 1972, in the am ount of $5,803,525,000, as follow s: 91-day bills (to m aturity date) to be issued November 30, 1972, in the amount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated A ugust 31, 1972, and to m ature M arch 1, 1973 (C U S IP No. 912793 Q H 2 ), originally issued in the am ount of $1,801,810,000, the additional and original bills to be freely interchangeable. 182-day bills (to m aturity date) to be issued November 30, 1972, in the amount of $1,900,000,000, o r thereabouts, representing an additional am ount of bills dated May 31, 1972, and to m ature M ay 31, 1973, (C U S IP No. 912793 P X ), originally issued in the amount of $1,200,180,000 (an additional $500,950,000 was issued A ugust 31, 1972), the additional and original bills to be freely interchangeable. 8 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 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 v alu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m.,_ E astern Standard time, Monday, November 27, 1972. Tenders will not be received at the T reasury Departm ent, W ashington. E ach 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 , 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 form s and forw arded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. 100 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 fo r their own account. Tenders will be received w ithout deposit from incorporated banks and tru st 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 am ount 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. Im mediately a fte r 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 submitting competitive tenders will be advised o f the acceptance o r rejection thereof. T he Secretary of the T reasury 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 fo r each issue fo r $ or less w ithout stated price from any one bidder will be accepted in full at 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 30, 1972, in cash or other im mediately available funds or in a like face am ount of T reasury bills m aturing November 30, 1972. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made fo r d if ferences between the par 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) of the Internal Revenue Code of 1954, the am ount of discount a t which bills issued here under are sold is considered to accrue when the bills are sold, re deemed o r 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 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 or on subsequent purchase, and the amount actually received either upon sale or redemption at m aturity during the taxable year fo r which the return is made. T reasury D epartm ent Circular No. 418 (current 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. 200,000 This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday November 27, 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 con firmation; 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 immediately available funds or in maturing Treasury bills. R esults of the last w eekly offering of T re a su ry bills (90-day bills to be issued N ovem ber 24, 1972, representing an additional am ount of bills dated A ugust 24, 1972, m aturing F eb ru ary 22, 1973; and 181-day bills dated N ovem ber 24, 1972, m atu rin g M ay 24, 1973) are show n 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 NOVEMBER 24, 1972) R ange of Accepted C om petitive Bids 90-Day Treasury B ills Maturing February 2 2 ,1 97 3 181-Day Treasury Bills Maturing M ay 2 4 ,1 97 3 Price A pprox. equiv. annual rate Price High ... 98.817 4.732% 97.482 5.( L o w ...... 98.801 4.796% 97.453 5.066% Average 98.806 4 .7 7 6 % ! 97.461 5.050%! A pprox. equiv. annual rate 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 4.90 percent fo r the 90-day bills, and 5.25 percent fo r the 181-day bills. (95 percent of the amount of 90-day bills bid for at the low price was accepted.) (81 percent of the amount of 181-day bills bid for at the low price was accepted.) T otal T enders A pplied for and Accepted (By F ederal Reserve Districts) 9 0 -Day Treasury Bills Maturing February 2 2 ,1 97 3 A pplied fo r District Boston ................... .................. New Y o r k ............. .............. $ 31,615,000 181-D ay Treasury Bills Maturing M ay 2 4 ,1 9 7 3 Accepted $ 19,040,000 Applied fo r $ 22,510,000 Accepted $ 8,510,000 3,013,620,000 1,980,545,000 2,886,640,000 1,605,490,000 Philadelphia........... ................. 31,935,000 21,685,000 29,555,000 9,455,000 Cleveland ............... 22,535,000 21,735,000 38,025,000 21,875,000 Richm ond............... 16,445,000 12,345,000 13,120,000 2,920,000 Atlanta ................... __________ 25,955,000 24,945,000 22,340,000 8,090,000 Chicago ................. ................. 289,125,000 165,025,000 295,485,000 112,565,000 St. Louis ............... ................. 44,755,000 30,755,000 40,500,000 18,000,000 Minneapolis ........... ................. 31,880,000 22,630,000 20,035,000 9,035,000 ................. 28,335,000 18,335,000 22,485,000 11,185,000 Dallas ...................... ................. 36,295,000 19,245,000 31,420,000 8,420,000 .............. 98,690,000 64,840,000 384,285,000 84,785,000 Kansas C it y ........ San Francisco ....... T o ta l........... .............. $3,671,185,000 $2,401,125,000“ a Includes $160,105,000 noncompetitive tenders accepted at the average price of 98.806. b Includes $88,735,000 noncompetitive tenders accepted at the average price of 97.461. $3,806,400,000 $1,900,330,000b
@FedFRASER