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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agen t of the United States Circular N o. 7 0 8 0 -1 January 16, 1973 J £ OFFERING OF T W O SERIES OF TREASURY BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated October 26, 1972, Due April 26, 1973 (To Be Issued January 25, 1973) $1,900,000,000 of 182-Day Bills, Dated January 25, 1973, Due July 26, 1973 T o A ll Incorporated Banks and Trust 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 of Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for T reas ury bills maturing January 25, 1973, in the amount of $4,101,200,000, 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 o f 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 25, 1973, in the amount o f $2,400,000,000, or thereabouts, representing an additional amount of bills dated O cto ber 26, 1972, and to mature A pril 26, 1973 (C U S I P N o. 912793 Q R O ), originally issued in the amount of $1,800,705,000, 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 w ill 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 decimals) 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 25, 1973, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing January 25, 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 25, 1973, and to mature July 26, 1973 (C U S I P N o. 912793 R M 0 ). The 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, M onday, January 22, 1973. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for a minimum of $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 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 forw arded in the special enve lopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of 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 o f 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. Accordingly, the owner o f Treas ury bills (other than life insurance companies) 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 22, 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 18, 1973, representing an additional amount of bills dated October 19, 1972, maturing April 19, 1973; and 182-day bills dated January 18, 1973, maturing July 19, 1973) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 18, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 19,1973 A p p rox. equiv. annual rate P rice High 182-Day Treasury Bills Maturing July 19,1973 P rice A pprox. equiv. annual rate .......................... .......... 98.678 5.230% 97.206 5.527% Low ............................ .......... 98.655 5.321% 97.182 5.574% Average ...................... .......... 98.666 5.277% x 97.199 5.540%1 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.42% for the 91-day bills, and 5.78% for the 182-day bills. (24 percent of the amount of 91-day bills bid for at the low price was accepted.) (65 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 19,1973 D istrict New Y o r k .................. .......... Philadelphia .............. .......... $ 45,660,000 2,902,165,000 12,745,000 A pplied for A ccep ted Applied, fo r Boston ........................ ........... 182-Day Treasury Bills Maturing July 19,1973 $ 43,660,000 $ 46,845,000 A ccepted $ 3,845,000 1,929,965,000 2,890,780,000 1,624,930,000 12,745,000 68,150,000 32,600,000 10,910,000 Cleveland .................. .......... 22,620,000 22,620,000 37,105,000 Richmond .................. .......... 17,625,000 15,625,000 14,725,000 6,725,000 ...................... .......... 17,220,000 17,145,000 15,020,000 13,020,000 Chicago ...................... .......... 234,650,000 162,650,000 344,350,000 90,375,000 St. Louis .................... ........... 56,615,000 51,755,000 35,505,000 16,305,000 .......... 31,975,000 31,975,000 20,970,000 8,970,000 .......... 35,270,000 27,510,000 25,010,000 18,760,000 ........................ ........... 38,060,000 22,540,000 33,475,000 7,475,000 97,065,000 62,305,000 140,950,000 66,250,000 Atlanta Dallas San F ran cisco.............. T otal ........................ .......... $3,511,670,000 $2,400,495,000a a Includes $191,315,000 noncompetitive tenders accepted at the average price of 98.666. b Includes $104,465,000 noncompetitive tenders accepted at the average price of 97.199. $3,672,885,000 $1,900,165,000b
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