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FEDERAL RESERVE BANK OF N EW YORK Fiscal A gen t of the United States r Circular No. 7 1 2 6 "1 L April 24, 1973 J O FFERIN G OF T W O SERIES OF T R E A SU R Y BILLS $2,400,000,000 of 91-Day Bills, Additional Amount, Series Dated February 1 ,1 9 7 3 , Due August 2 ,1 9 7 3 (To Be Issued May 3, 1973) $1,800,000,000 of 182-Day Bills, Dated May 3, 1973, Due November 1, 1973 T o A ll Incorporated Banks and Trust Companies, and O thers 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: T h e 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, o r thereabouts, for cash and in exchange fo r T rea sury bills maturing M ay 3, 1973, in the amount o f $4,303,150,000, 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 Treasu ry bills applied for, 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 M ay 3, 1973, in the amount of $2,400,000,000, or thereabouts, representing an additional amount of bills dated Febru ary 1, 1973, and to mature A ugust 2, 1973 (C U S I P N o. 912793 R N 8 ), originally issued in the amount of $1,800,885,000, 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 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. T h e 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 will be accepted in full at the average price (in three decim als) o f accepted com petitive 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 M ay 3, 1973, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M ay 3, 1973. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill 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 M ay 3, 19/3, and to mature N ovem ber 1, 1973 (C U S I P N o. 912793 S B 3 ). 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 will be payable without interest. T hey 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 valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, M onday, A p ril 30, 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 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 form s and forw arded in the special envelopes 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 w ill 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) o f 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 ow ner o f 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 o r 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 o f 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 Daylight Saving time, Monday, April 30, 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.” 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 April 26, 1973, representing an additional amount of bills dated January 25, 1973, maturing July 26, 1973; and 182-day bills dated April 26, 1973, maturing October 25, 1973) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF L A S T W E E K L Y O F FE R IN G OF T R E A S U R Y BILLS (T W O SERIES T O BE ISSUED A P R IL 26, 1973) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing July 26, 1973 1 82-Day Treasury Bills Maturing October 25, 1973 P r ice A p p rox. equiv. annual rate High ............................................. 98.435 6.191% 96.664a 6.599% Low 98.408 6.298% 96.639 6.648% 98.420 6.251 % x 96.648 6.630%1 ............................................. Average ....................................... P r ice A p p ro x . equiv. annual rate a E xcepting five tenders totaling $1,710,000. 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 6.44% for the 91-day bills, and 6.96% fo r the 182-day bills. (54 percent of the amount of 91-day bills (61 percent of the amount of 182-day bills bid for at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing July 26, 1973 .......... New Y o r k .................... $ 19,470,000 A pplied for A ccep ted A pplied for D istrict 182-Day Treasury Bills Maturing October 25, 1973 $ 9,470,000 $ A ccepted $ 3,395,000 2,867,230,000 2,015,830,000 3,050,640,000 1,621,335,000 36,075,000 16,075,000 5,745,000 5,345,000 8,945,000 ........ 26,160,000 26,160,000 24,745,000 .......... 9,490,000 9,490,000 5,565,000 5,265,000 26,110,000 22,810,000 21,520,000 9,765,000 246,955,000 140,105,000 298,115,000 90,510,000 68,615,000 37,615,000 61,240,000 15,040,000 22,380,000 18,380,000 19,505,000 5,505,000 38,850,000 27,360,000 31,105,000 12,095,000 37,895,000 21,975,000 32,490,000 6,360,000 73,895,000 54,895,000 275,125,000 16,600,000 $3,839,890,000 $1,800,160,000 .......... $3,473,125,000 $2,400,165,000b b Includes $211,105,000 noncompetitive tenders accepted at the average price o f 98.420. c Includes $107,260,000 noncompetitive tenders accepted at the average price o f 96.648. 14,095,000
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