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FEDERAL R ESERVE B AN K OF N E W YORK Fiscal Agent of the United States r Circular No. 7 2 9 0 i. December 11, 1973 *1 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated September 20,1973, Due March 21,1974 (To Be Issued December 20, 1973) $1,800,000,000 of 182-Day Bills, Dated December 20, 1973, Due June 20, 1974 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: The following statement was made public today by the Treasury Department: The Treasury’s last two regular weekly bill auctions scheduled for this year will be held on Friday, December 21, and Friday, December 28, rather than on the usual Monday. Announcements inviting tenders will be made on Friday, the 14th, and Friday, the 21st. The payment and delivery day for the bills will be Thursday as usual. Following is the text of the public notice offering the bills to be auctioned December 17: 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 in exchange for Treasury bills maturing December 20, 1973, in the amount of $4,303,185,000, 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 December 20, 1973, in the amount of $2,500,000,000, or thereabouts, representing an additional amount of bills dated Septem ber 20, 1973, and to mature March 21, 1974 (C U S IP No. 912793 T D 8 ), originally issued in the amount of $1,803,300,000, 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 December 20, 1973, in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 20, 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 December 20, 1973, and to mature June 20, 1974 (C U S IP No. 912793 T S 5 ). 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 Standard time, Monday, December 17, 1973. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. l enders over $10,000 must be in multiples 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 lenders except for their own account. Tenders will be received without deposit from incorporated banks and trust Under Sections 454(b) and 1221(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 No. 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 Standard time, Monday, Dece'mber 17, 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 hills cannot he 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 December 13, 1973, representing an additional amount of bills dated September 13, 1973, maturing March 14, 1974; and 182-day bills dated December 13, 1973, maturing June 13, 1974) are shown on the reverse side of this circular. A lfred H a y e s , President. ( o ver ) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED DECEMBER 13, 1973) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing March 14,1974 182-Day Treasury Bills Maturing June 13,1974 Approx. equiv. Price High ................. 98.146* L o w .................. 98.123 Average................ 98.133 Approx. equiv. annual rate 7.335% 7.425% 7.386%x Price annual rate 96.211 7.495% 96.184 7.548% 96.193 7.530%1 a Excepting one tender of $500,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.63% for the 91-day bills, and 7.94% for the 182-day bills. (86 percent of the amount of 91-day bills bid for at the low price was accepted.) (52 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 March 14,1974 Applied, for District ... $ 43,365,000 182-Day Treasury Bills Maturing June 13,1974 A pplied for Accepted $ 32,035,000 $ 25,975,000 Accepted $ 9,340,000 New York ........ ... ... 2,894,705,000 1,955,805,000 2,620,945,000 1,505,195,000 29,380,000 29,255,000 52,970,000 9,495,000 ... 48,085,000 47,545,000 30,455,000 17,905,000 Richmond ........ ... ... 30,330,000 26,160,000 28,330,000 22,635,000 11,925,000 24,900,000 19,335,000 13,210,000 ... St. Louis ......... ... Minneapolis ....... ... 256,140,000 46,165,000 197,445,000 408,135,000 81,240,000 28,905,000 69,755,000 38,405,000 29,500,000 22,500,000 32,255,000 12,185,000 Kansas City....... ... Dallas ........... ... 31,125,000 26,730,000 23,315,000 22,535,000 36,870,000 19,970,000 54,400,000 10,200,000 193,915,000 68,970,000 San Francisco..... ... T o t a l .................. ... 160,925,000 $3,632,750,000 87,125,000 $2,500,545,000b b Includes $332,620,000 noncompetitive tenders accepted at the average price. c Includes $184,825,000 noncompetitive tenders accepted at the average price. $3,554,090,000 $1,800,605,000c
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