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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular N o. 7 0 7 5 1 L January 2, 1973 J O F F E R IN G OF T W O SERIES OF T R E A S U R Y BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated October 12, 1972, Due April 12, 1973 (To Be Issued January 11, 1973) $1,900,000,000 of 182-Day Bills, Dated January 11, 1973, Due July 12, 1973 T o A ll Incorporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: The Treasury Department, by this public notice, invites tenders for tw o series of Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for Treas ury bills maturing January 11, 1973, in the amount of $4,103,330,000, as fo llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by payment of 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued January 11, 1973, in the amount of $2,400,000,000, or thereabouts, representing an additional amount o f bills dated O cto ber 12, 1972, and to mature A pril 12, 1973 (C U S I P N o. 912793 Q P 4 ), originally issued in the amount of $1,802,170,000, the additional and original bills to be freely interchangeable. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range of accepted bids. Only those submitting competitive tenders will be advised of the acceptance or rejection thereof. T he Secretary o f 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 decim als) o f accepted com peti 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 January 11, 1973, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing January 11, 1973. Cash and exchange tenders will re ceive equal treatment. Cash adjustments will be made for differ ences between the par value of maturing bills accepted in exchange and the issue price of the new bills. 182-day bills, for $1,900,000,000, or thereabouts, to be dated January 11, 1973, and to mature July 12, 1973 (C U S I P N o. 912793 R K 4 ). T h e bills o f both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter pro vided, and at maturity their face amount will be payable without interest. They will be issued in bearer form only, and in denomina tions o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Monday, January 8, 1973. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. In the case of competitive tenders the price offered must be expressed on the basis o f 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 enve lopes which 'will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f customers, provided the names o f 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 Under Sections 4 5 4 (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, redeemed or otherwise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the owner o f T reas ury bills (other than life insurance com panies) issued hereunder must include in his income tax return, as ordinary gain o r loss, the difference 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 N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, January 8 , 1973, 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 confirmation; 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. Results of the last weekly offering of Treasury bills (91-day bills to be issued January 4, 1973, representing an additional amount of bills dated October 5, 1972, maturing April 5, 1973; and 182-day bills dated January 4, 1973, maturing July 5, 1973) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 4, 1973) Rang;e of Accepted Competitive Bids 91 -Day Treasury Bills Maturing April 5. 1973 182-Day Treasury Bills Maturing July 5,1973 A p p rox. equiv. annual rate P rice P rice A p p rox. equiv. annual rate . 98.706 5.119% 97.294 5.353% Low . . 98.687 5.194% 97.260 5.420% Average 98.695 5.163%* 97.272 5.396%! High 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.30% for the 91-day bills, and 5.62% for the 182-day bills. (98 percent of the amount of 91-day bills bid for at the low price was accepted.) (69 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing April 5,1973 Boston .......................... ........ $ 38,915,000 Applied for A ccepted A pplied for D istrict 182-Day Treasury Bills Maturing July 5,1973 $ 35,915,000 $ 17,725,000 A ccepted $ 3,415,000 New York .................... ........ 2,929,105,000 1,845,105,000 2,578,765,000 1,500,395,000 ................ ........ 15,375,000 15,375,000 25,985,000 15,985,000 Cleveland .................... ........ 22,320,000 22,320,000 34,755,000 29,755,000 Richmond .................... ........ 14,915,000 8,915,000 12,820,000 4,820,000 Atlanta ........................ ........ 14,390,000 11,390,000 8,595,000 7,595,000 Chicago ........................ .......... 331,550,000 242,230,000 308,570,000 192,470,000 St. Louis ...................... .......... 59,090,000 56,090,000 27,375,000 22,655,000 Minneapolis .......................... 22,940,000 20,940,000 27,370,000 26,750,000 Kansas Citv ................ .......... 29,245,000 19,045,000 20,375,000 16,355,000 .......................... .......... 49,580,000 33,540,000 33,710,000 13,090,000 109,840.000 89,340,000 151,460,000 66,810,000 $3,247,505,000 $1,900,095,000 Philadelphia Dallas San F ran cisco.............. T OTAL ....................... .......... $3,637,265,000 $2,400,205,000“ a Includes $165,855,000 noncompetitive tenders accepted at the average price of 98.695. b Includes $80,905,000 noncompetitive tenders accepted at the average price of 97.272.
@FedFRASER