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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gen t of the United States [ Circular No. 7 0 8 3 1 January 23, 1973 J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS !,400,000,000 of 91-Day Bills, Additional Amount, Series Dated November 2, 1972, Due May 3, 1973 (To Be Issued February 1, 1973) $1,800,000,000 of 182-Day Bills, Dated February 1, 1973, Due August 2, 1973 T o A ll Incorporated 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 $4,200,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing February 1, 1973, in the amount of $4,200,775,000, as fo llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accom panied by payment of 2 percent of the face amount o f 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 February 1, 1973, in the amount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated N ovem ber 2, 1972, and to mature M ay 3, 1973 (C U S I P N o. 912793 Q S 8 ), originally issued in the amount of $1,901,175,000, 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 in g which public announcement will be made by the Treasury Department o f the amount and price range of accepted bids. O nly those submitting competitive tenders will be advised of the acceptance or rejection thereof. The 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 reserva tions, 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) of accepted competitive 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 February 1, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing February 1, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. 182-day bills, for $1,800,000,000, or thereabouts, to be dated February 1, 1973, and to mature August 2, 1973 (C U S I P N o. 912793 R N 8 ). The bills o f both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. Th ey 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 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 29, 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 mul tiples o f $5,000. In the case o f 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 form s and forw arded in the special envelopes which w ill 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 hereunder are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from considera tion as capital assets. A ccordin gly, the owner of Treasury 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 fo r which the return is made. Treasury Department Circular N o. 418 (current revision) and this notice prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be ob tained 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 29, 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 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. Results of the last weekly offering of Treasury bills (91-day bills to be issued January 25, 1973, representing an additional amount of bills dated October 26, 1972, maturing April 26, 1973; and 182-day bills dated January 25, 1973, maturing July 26, 1973) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 25, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 26, 1973 182-Day Treasury Bills Maturing July 26, 1973 P rice A p p rox. equiv. annual rate P rice High .............. ............. ................. 98.589 5.582% 97.094a 5.748% Low .............................. ................. 98.572 5.649% 97.081 5.774% A verage....................... ................. 98.576 5.633% 97.088 5.760%! A p p rox. equiv. annual rate a E xcepting four tenders totaling $245,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.79% for the 91-day bills, and 6.02% for the 182-day bills. (91 percent of the amount of 91-day bills bid for at the low price was accepted.) (73 percent o f the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 9 1-Day Treasury Bills Maturing April 26, 1973 D istrict Applied for Boston ................ ......... ........... $ 44,920,000 182-Day Treasury Bills Maturing July 26, 1973 A ccepted $ 35,380,000 A ccepted A pplied for $ 47,640,000 $ 2,640,000 New York .................... ........... 3,276,090,000 2,108,140,000 3,075,960,000 1,724,440,000 Philadelphia ................. ........... 25,800,000 15,775,000 36,600,000 6,600,000 Cleveland .................... . ........... 25,250,000 24,900,000 46,435,000 10,770,000 Richmond ..................... ........... 17,780,000 7,780,000 14,000,000 3,900,000 Atlanta ......................... ........... 18,370,000 13,145,000 14,340,000 10,110,000 Chicago ....................... ........... 254,315,000 101,130,000 446,755,000 94,955,000 St. Louis ...................... ........... 43,870,000 28,190,000 22,690,000 12,690,000 Minneapolis ................. ........... 30,500,000 12,495,000 27,515,000 5,460,000 Kansas City ................. 34,735,000 18,005,000 24,535,000 12,605,000 Dallas ........................... 38,310,000 11,860,000 37,080,000 7,340,000 San Francisco .............. 151,825,000 23,545,000 159,400,000 9,300,000 $3,952,950,000 $1,900,810,000 T o t a l ..................... ........... $3,961,765,000 $2,400,345,000b b Includes $195,370,000 noncompetitive tenders accepted at the average price of 98.576. c Includes $104,605,000 noncompetitive tenders accepted at the average price of 97.088.
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