View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK OF NEW Y O R K
Fiscal Agent of the United States

r Circular N o. 7 2 0 4 1
U
A ugust 7, 1973
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated May 17,1973, Due November 15,1973
(To Be Issued August 16, 1973)
$1,800,000,000 of 182-Day Bills, Dated August 16, 1973, Due February 14, 1974
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

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 two series of Treasury bills to the aggregate amount of
$4,300,000,000, or thereabouts, for cash and in exchange for Treas­
ury bills maturing August 16, 1973, in the amount of $4,303,570,000,
as follow s:

companies and from responsible and recognized dealers in invest­
ment securities. Tenders from others must be accompanied by
payment of 2 percent of the face amount of 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 August 16,
1973, in the amount of $2,500,000,000, or thereabouts,
representing an additional amount of bills dated M ay 17,
1973, and to mature November 15, 1973 ( C U S I P N o.
912793 S D 9 ), originally issued in the amount of
$1,692,665,000, 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, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Only those submitting
competitive tenders will be advised of the acceptance or rejection
thereof. The Secretary of 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 decimals) 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 August 16, 1973, in cash or other immediately
available funds or in a like face amount of Treasury bills maturing
August 16, 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
August 16, 1973, and to mature February 14, 1974
( C U S I P N o . 912793 S Y 3 ) .
The bills of both series will 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.
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
value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Daylight
Saving time, Monday, August 13, 1973. Tenders will not be received
at the Treasury Department, W ashington. Each tender must be
for a minimum of $10,000. Tenders over $10,000 must be in mul­
tiples of $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 forms and forwarded 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
of customers, provided the names of 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 1 2 2 1 (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. Accordingly, the owner of Treasury bills
(other than life insurance companies) 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 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 Daylight Saving time Monday
11
1973, at the Securities Department of its Head Office and at its Buffalo Branch. Tende? forms for the reS e t ve
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 ™ d Loan Account. Settlement must be made in cash or other immediately available funds
oy 'iyi wiCLtuYiYig J ycQ/SWKy u tils,
.

J

Results of the last weekly offering of Treasury bills (91-day bills to be issued August 9 1973 renresenti™ a„
additional amount of bills dated May 10, 1973, maturing November 8, 1973; and 182-day bills dated August Q 1Q7?
maturing February 7, 1974) 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 AUGUST 9, 1973)

Range of Accepted Competitive Bids

91-Day Treasury Bills
Maturing November 8,1973

182-Day Treasury Bills
Maturing February 7,1974

Price

Approx. equiv.
annual rate

High .............................................

97.890*

8.347%

95.684b

8.537%

Low

97.830

8.585%

95.608

8.687%

97.855

S.486%1

95.627

S.650%1

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

Average

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

Price

a Excepting one tender of $10,000.

Approx. equiv.
annual rate

b Excepting five tenders totaling $85,000.

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8 .79 % for the 91-day bills, and 9.17% for the
182-day bills.

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

(41 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 November 8,1973
Applied for

District

Boston

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

$

33,580,000

182-Day Treasury Bills
Maturing February 7,1974

Accepted

$

23,580,000

Applied for

$

22,825,000

Accepted

$

12,825,000

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

2,810,150,000

1,966,600,000

2,505,410,000

1,384,510,000

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

23,900,000

23,900,000

11,445,000

11,445,000

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

34,645,000

34,645,000

54,600,000

34,600,000

R ich m on d.................. .. ..........

35,565,000

35,565,000

21,890,000

21,890,000

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

20,900,000

20,900,000

21,500,000

21,300,000

185,115,000

122,075,000

156,545,000

73,645,000

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

40,705,000

39,195,000

73,300,000

60,800,000

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

30,985,000

30,985,000

23,045,000

19,045,000

Kansas C i t y ..............

37,290,000

36,290,000

34,320,000

29,320,000

42,830,000

39,920,000

31,420,000

123,455,000

144,360,000

99,360,000

Chicago

.................... ;, . . . . . .

..........

Dallas ............................
San F ra n cisco .............. . . . . . .
T o t al ....................

124,965,000
$3,421,140,000

$2,500,020,000°

c Includes $325,685,000 noncompetitive tenders accepted at the average price of 97.855.
d Includes $247,135,000 noncompetitive tenders accepted at the average price of 95.627.




$3,109,160,000

$1,800,160,000*


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102