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FEDERAL RESERVE BANK OF N EW Fiscal A g e n t of the United States YORK r Circular No. 7 1 3 4 May 1, 1973 1 J OFFERING OF TW O SERIES OF TREASURY BILLS $2,500,000,000 o f 91-Day Bills, Additional Amount, Series Dated February 8,1973 , Due August 9,1973 (To Be Issued May 10, 1973) $1,800,000,000 o f 182-Day Bills, Dated May 10, 1973, Due November 8, 1973 T o A ll In corpora ted Batiks and Trust Com panies, and O th ers C oncerned, 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 T reasu ry Department, by this public notice, invites tenders fo r tw o series o f Treasu ry bills to the aggregate amount of $4,300,000,000, o r thereabouts, for cash and in exchange for T rea sury bills m aturing M a y 10, 1973, in the amount o f $4,303,270,000, as f o 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 o f the face amount o f T reasu ry bills apptied for, unless the tenders are accom panied by an express guaranty of payment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued M ay 10, 1973, in the amount o f $2,500,000,000, or thereabouts, representing an additional amount o f bills dated F ebru ary 8, 1973, and to mature A u gust 9, 1973 (C U S I P N o. 912793 R P 3 ) , originally issued in the amount o f $1,S00,965,000, the additional and original bills to be freely interchangeable. Imm ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g which public announcement w ill be made b y the Treasury Department o f the amount and price range o f accepted bids. O nly those submitting com petitive tenders w ill be advised o f the acceptance o r rejection thereof. T h e Secretary o f the Treasu ry expressly reserves the right to accept o r reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Su bject to these reserva tions, noncom petitive tenders fo r 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 com petitive bids for the respective issues. Settlement fo r accepted tender* in accordance with the bids must be made or com pleted at the Federal Reserve Bank on M ay 10, 1973, in cash o r other immediately available funds or in a like face amount o f Treasury bills maturing M ay 10, 1973. Cash and exchange tenders w ill receive equal treatment. Cash adjustments w ill be made for differences between the par value o f m aturing bills accepted in exchange and the issue price o f the new bills. 182-day bills, fo r $1,800,000,000, or thereabouts, to be dated M a y 10, 1973, and to mature N ovem ber 8, 1973 ( C U S I P N o. 912793 S C I ) . T h e bills o f both series w ill be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face amount w ill be payable without interest. T h e y w ill 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 v a lu e ). T enders w ill be received at Federal R eserve Banks and Branches up to the closin g hour, one-thirty p.m., Eastern D aylight Saving time, M onday, M ay 7, 1973. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be fo r a minimum o f $10,000. Tenders over $10,000 must be in m ul tiples o f $5,000. In the case o f com petitive tenders the price offered must be expressed on the basis o f 100, w ith not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forw arded in the special envelopes w hich w ill be supplied by Federal Reserve Banks or Branches on application therefor. B anking institutions generally m ay submit tenders for account o f custom ers, 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 w ill be received without deposit from incorporated banks and trust U nder Sections 4 5 4 (b ) and 1 2 2 1(5 ) of the Internal Revenue Code o f 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 Treasu ry bills (oth er than life insurance com panies) issued hereunder must include in his incom e 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 fo r which the return is made. T reasu ry 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 o b tained from any Federal R eserve Bank or Branch. This Bank will receive tenders for both series lip to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 7, 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 May 3, 1973, representing an addi tional amount of bills dated February 1, 1973, maturing August 2, 1973; and 182-day bills dated May 3, 1973, maturing November 1, 1973) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) R E SU LT S OF L A S T W E E K L Y O F F E R IN G OF T R E A S U R Y BILLS (T W O SERIES T O B E ISSUED M A Y 3, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing August 2,1973 182-Day Treasury Bills Maturing November 1,1973 P r ice A p p ro x . equiv. annual rate P r ice A p p ro x . equiv. annual rate High . . 98.433 6.199% 96.700 6.527% Low .. 98.406 6.306% 96.670 6.587% Average 98.413 6.278% x 96.676 6.575 % 1 1 These rates are on a bank discount basis. T h e equivalent coupon issue yields are 6.47% for the 91-day bills, and 6.90% fo r the 182-day bills. (14 percent of the amount of 91-day bills bid for at the low price was accepted.) (44 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders A pplied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing August 2,1973 District Boston Applied for ..................................... $ 26,690,000 182-Day Treasury Bills Maturing November 1,19 73 Accepted $ Applied for 16,690,000 $ 16,590,000 $ 5,875,000 New Y o r k ............................... 3,133,005,000 2,018,205,000 Philadelphia............................. 21,235,000 21,235,000 41,675,000 5,385,000 Cleveland ................................. 26,965,000 26,965,000 12,765,000 12,765,000 R ich m on d................................. a *.1— J. l U d i l t - C V ................. ..................... 24,865,000 1 ? nc.c\ onn X x Jj/ 16,865,000 16,810,000 7,310,000 1 n zcc\nna 1 1 nco nr\r\ o ncn non Chicago J 2,96S,570,000 Accepted X L 1,561,470,000 ................................... 303,760,000 142,980,000 264,095,000 83,095,000 St. Louis ................................. 68,500,000 47,500,000 56,220,000 21,720,000 Minneapolis ............................. 22,185,000 22,185,000 20,175,000 16,175,000 Kansas C i t y ............................. 40,185,000 29,885,000 29,815,000 18,345,000 Dallas ........................................ 45,260,000 31,260,000 47,745,000 22,185,000 San F ra n cisco......................... 135,225,000 116,205,000 129,280,000 37,270,000 T o t a l ........................... $3,861,635,000 $2,500,535,000a $3,615,690,000 * Includes $223,605,000 noncom petitive tenders accepted at the average price o f 93.413. b Includes $112,825,000 noncom petitive tenders acccpted at the average price o f S6.676. $ 1,800,545,000b
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