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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States

r Circular No. 7 1 3 7 1
U
May 8, 1973
J

O FFERIN G OF T W O SERIES OF T R E A S U R Y BILLS
$2,500 ,00 0,00 0 of 91-Day Bills, Additional Amount, Series Dated February 1 5 ,1 9 7 3 , Due August 16 ,1 9 7 3
(To Be Issued May 17, 1973)
$1,700,000,000 of 182-Day Bills, Dated May 17, 1973, Due November 15, 1973
T o A ll In corporated 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
fo r 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 M ay 17, 1973, in the amount of $4,304,335,000,
as fo llo w s :

companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accompanied by
payment o f 2 percent of the face amount o f Treasury 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 17,
1973, in the amount o f $2,500,000,000, or thereabouts,
representing an additional amount o f bills dated Febru­
ary 15, 1973, and to mature August 16, 1973 (C U S I P
N o. 912793 R Q 1 ), originally issued in the amount o f
$1,802,910,000, 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. Only those submitting
competitive tenders will be advised o f 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 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 M ay 17, 1973, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing
M ay 17, 1973. Cash and exchange tenders w ill 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 $1,700,000,000, or thereabouts, to be
dated M ay 17, 1973, and to mature N ovem ber 15, 1973
( C U S I P N o. 912793 S D 9 ).
T he bills o f both series w ill be issued on a discount basis under
com petitive 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
va lu 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, M ay 14, 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 mul­
tiples o f $5,000. In the case o f competitive tenders the price offered
must be expressed on the basis o f 100, with not m ore 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 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 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 owner 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 of 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, May 14,
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 10, 1973, representing an addi­
tional amount of bills dated February 8 , 1973, maturing August 9, 1973; and 182-day bills dated May 10, 1973,
maturing November 8 , 1973) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
(OVER)

RESULTS OF L A ST W E E K L Y O FFE R IN G OF T R E A S U R Y BILLS
(T W O SERIES TO BE ISSUED M A Y 10, 1973)

Range of Accepted Competitive Bids

91-Day Treasury Bills
Maturing August 9, 1973

182-Day Treasury Bills
Maturing November 8,1973

A p p rox. equiv.
annual rate

P r ice

P r ice

A p p ro x . equiv.
annual rate

High ..

98.455

6 . 112%

96.758

6.413%

Low

..

98.448

6.140%

96.741

6.446%

Average

98.449

6.136%1

96.749

6.431%x

1 These rates are on a bank discount basis. T h e equivalent coupon issue yields are 6.32% for the 91-day bills, and 6.74% for the
182-day bills.

(85 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(72 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 August 9, 1973

........................ ..........

Boston

A ccep ted

A pplied for

D istrict

$

26,495,000

182-Day Treasury Bills
Maturing November 8, 1973

$

14,395,000

Applied for

$

14,480,000

A ccepted

$

2,630,000

New Y o r k .................. ..........

3,624,825,000

2,192,730,000

Philadelphia................ ..........

14,695,000

14,670,000

25,225,000

5,095,000

Cleveland .................... ..........

25,615,000

21,770,000

34,000,000

8,800,000

R ichm ond.................... ...........

9,280,000

9,280,000

5,895,000

5,095,000

Atlanta ........................ ...........

27,915,000

13,120,000

22,525,000

10,715,000

........................ ..........

356,970,000

122,970,000

285,470,000

98,045,000

St. Louis .................... ...........

40,235,000

25,520,000

23,380,000

19,070,000

Minneapolis .................. ..........

35,010,000

6,565,000

30,045,000

8,045,000

Kansas C it y .................. ..........

34,580,000

18,450,000

30,525,000

14,475,000

Dallas ............................ ..........

42,130,000

13,530,000

36,885,000

7,885,000

San F ra n cisco.............. ..........

137,390,000

50,650,000

194,530,000

92,720,000

Chicago

T otal

......................

$4,375,140,000

$2,503,650,000a

a Includes $223,415,000 noncompetitive tenders accepted at the average price o f 98.449.
b Includes $105,355,000 noncompetitive tenders accepted at the average price of 96.749.




2,915,890,000

1,528,900,000

$3,618,850,000

$1,801,475,000b

TREASURY DEPARTMENT
Washington, D.C.
STATEMENT FOR THE PRESS
May 7, 1973
FOR IMMEDIATE RELEASE
Treasury Announces Reduction in Weekly Issue of Bills
The Treasury announced today that the amount of its weekly auction of
l82-day hills will he lower by $100 million in coming weeks.
amount auctioned has been $1.8 billion each week.

In recent weeks the

Beginning with the auction to

be held on Monday, May lU, the amount auctioned will be $1.7 billion.
This change has been made in recognition of the Treasury's strong cash

position.