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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agen t of the United States [“Circular N o. 7 0 7 7 1 U January 9, 1973 J O FFERING OF T W O SERIES OF TR E A SU R Y BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated October 19, 1972, Due April 19, 1973 (To Be Issued January 18, 1973) $1,900,000,000 of 182-Day Bills, Dated January 18, 1973, Due July 19, 1973 T o A ll In corporated Banks and T rust Companies, and Others Concerned, in the Second Federal R eserv e 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 o f Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for Treas ury bills maturing January 18, 1973, in the amount of $4,080,590,000, 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 of the face amount of Treasury bills applied tor, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued January 18, 1973, in the amount o f $2,400,000,000, or thereabouts, representing an additional amount o f bills dated O cto ber 19, 1972, and to mature A p ril 19, 1973 (C U S I P N o. 912793 Q Q 2 ), originally issued in the amount of $1,800,300,000, 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 will be made by the Treasury Department o f the amount and price range of accepted bids. Only those submitting competitive tenders w dl be advised o f 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 decim als) o f 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 January 18, 1973, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing January 18, 1973. Cash and exchange tenders w ill 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 18, 1973, and to mature July 19, 1973 (C U S I P N o. 912793 R L 2 ). Th e bills o f both series w ill 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. Th ey 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 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M onday, January 15, 1973. Tenders w ill 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 o f 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 forw arded 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 ow n 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 o f 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 Treas ury bills (other than life insurance com panies) issued hereunder must include in his income tax return, as ordinary gain or 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 of their issue. Copies o f 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 15, 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 11, 1973, representing an additional amount of bills dated October 12, 1972, maturing April 12, 1973; and 182-day bills dated January 11, 1973, maturing July 12, 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 11, 1973) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing April 12,1973 A p p rox. equiv. annual rate P r ice High ., Low . . , Average 182-Day Treasury Bills Maturing July 12,1973 P r ice A p p ro x . equiv. annual rate 98.705 5.123% 97.274 5.392% 98.693 5.171% 97.253 5.434% 5.155%! 97.264 5.412%! 98.697 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 5.30% for the 91-day bills, and 5.64% for the 182-day bills. (7 percent of the amount of 91-day bills bid for at the low price was accepted.) (13 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 12,1973 D istrict Applied, for Boston .................... .............. New Y o r k .............. .............. $ 68,655,000 182-Day Treasury Bills Maturing July 12,1973 A ccep ted $ 62,245,000 A pplied for $ 38,670,000 A ccep ted $ 2,170,000 3,034,690,000 1,958,320,000 2,794,780,000 1,624,380,000 .......... .............. 15,640,000 15,640,000 54,610,000 3,895,000 Cleveland .............. .............. 23,790,000 23,580,000 71,100,000 21,100,000 Richmond .............. .............. 14,245,000 11,315,000 7,140,000 3,140,000 Atlanta .................. .............. 13,305,000 9,755,000 15,200,000 5,095,000 Chicago .................. .............. 298,595,000 169,565,000 270,250,000 71,745,000 St. Louis ................ .............. 56,330,000 43,005,000 33,150,000 18,650,000 .......... .............. 36,490,000 16,700,000 42,010,000 13,010,000 Kansas City .......... .............. 27,830,000 15,275,000 31,675,000 14,315,000 .............. 46,770,000 14,865,000 32,580,000 7,590,000 San F ra n cisco........ ............... 113,750,000 60,175,000 188,935,000 114,935,000 .................................. $3,750,090,000 Philadelphia Minneapolis T otal $2,400,440,000a a Includes $182,505,000 noncompetitive tenders accepted at the average price of 98.697. b Includes $100,145,000 noncompetitive tenders accepted at the average price of 97.264. $3,580,100,000 $ 1,900,025,000b
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