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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States j Circular No. 7 1 1 5 M arch 27, 1973 [ "1 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated January 4, 1973, Due July 5, 1973 (To Be Issued April 5,1973) $1,800,000,000 of 182-Day Bills, Dated April 5, 1973, Due October 4, 1973 To 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: T he 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 T rea sury bills maturing A pril 5, 1973, in the amount o f $4,202,790,000, 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 o f 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 A pril 5, 1973, in the amount o f $2,400,000,000, or thereabouts, representing an additional amount o f bills dated Janu ary 4, 1973, and to mature July 5, 1973 (C U S I P N o. 912793 R J 7 ), originally issued in the amount of $1,901,105,000, the additional and original bills to be freely interchangeable. Immediately after the closing hour, tenders w ill 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 of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 w ill be accepted in full at the average price (in three decim als) o f 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 A pril 5, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing A p ril 5, 1973. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. 182-day bills, for $1,800,000,000, or thereabouts, to be dated A pril 5, 1973, and to mature O ctober 4, 1973 (C U S I P N o. 912793 R X 6 ) . T he bills o f both series w ill 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. 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 (maturity v a lu 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, A pril 2, 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 m ul tiples o f $5,000. In the case of com petitive 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 of customers, provided the names of the customers are set forth in such tenders. Others than banking institutions w ill 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) o f the Internal Revenue Code o f 1954, the amount o f 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 for 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 o f their issue. Copies o f the circular may be o b tained from any Federal Reserve Bank or Branch. I his Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, April 2, 19/3, 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.” 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 1 reasury 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 March 29, 1973, representing an additional amount of bills dated December 28, 1972, maturing June 28, 1973; and 182-day bills dated March 29, 1973, maturing September 27, 1973) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED MARCH 29, 1973) Range of Accepted Competitive Bide 91-Day Treasury Bills Maturing June 28,1973 182-Day Treasury Bills Maturing September 27,1973 P rice A p p rox. equiv. annual rate H ig h .............................................. 98.430 6.211% 96.657 6.613% Low .............................................. 98.410 6.290% 96.644 6.638% A v e ra g e ........................................ 98.420 6.251 % l 96.647 6.632%x P rice A p p rox. equiv. annual rate 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 6.44% for the 91-day bills, and 6.96% for the 182-day bills. (53 percent of the amount of 91-day bills bid for at the low price was accepted.) (87 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 June 28,1973 A pplied for D istrict B oston ............................ .......... $ 31,920,000 182-Day Treasury Bills Maturing September 27,1973 A ccepted $ 21,665,000 A pplied for $ 43,540,000 A ccepted $ 3,340,000 New Y o r k ...................... ........ 2,949,155,000 2,032,040,000 3,643,560,000 1,620,505,000 Philadelphia.................. ........ 36,735,000 31,735,000 42,430,000 23,870,000 Cleveland ...................... ........ 29,380,000 29,335,000 50,280,000 12,715,000 R ich m on d...................... ........ 31,590,000 12,590,000 24,690,000 5,575,000 Atlanta .......................... ........ 23,360,000 21,360,000 27,270,000 11,560,000 C h ica go.......................... ........ 281,055,000 106,380,000 238,550,000 34,775,000 St. L o u is ........................ ........ 54,695,000 38,255,000 44,000.000 12,500,000 Minneapolis .................. ........ 24,255,000 12,255,000 20,865,000 4,115,000 Kansas C i t y .................. ........ 37,010,000 25,205,000 31,125,000 16,400,000 Dallas ............................ ........ 33,030,000 11,030,000 50,170,000 7,740,000 San Francisco .............. ........ 124,000,000 58,930,000 407,420,000 53,040,000 T otal ......................... ........ $3,656,185,000 $2,400,780,000* a Includes $221,665,000 noncompetitive tenders accepted at the average price of 98.420. b Includes $122,895,000 noncompetitive tenders accepted at the average price of 96.647. $4,623,900,000 $1,806,135,000b