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FED E R A L R ESER VE BANK O F NEW YORK Fiscal A gen t of the United States f Circular No. 7 3 7 1 1 ^ A pril 2, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated January 10,1974, Due July 11,1974 (To Be Issued April 11, 1974) $1,800,000,000 of 182-Day Bills, Dated April 11,1974, Due October 10, 1974 To A ll In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F ollow in g is the text o f a notice issued by the T reasury Department, released at 4 p.m. tod a y : T he Treasury Department, by this public notice, invites ten ders for tw o series o f Treasury bills to the aggregate amount of $4,300,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing A pril 11, 1974, in the amount o f $4,307,755,000, as fo llo w s : companies and from responsible and recognized dealers in invest ment securities. Tenders from others must be accompanied by pay ment o f 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f pay ment by an incorporated bank or trust company. 91-day bills (to maturity date) to be issued A pril 11, 1974, in the amount o f $2,500,000,000, or thereabouts, repre senting an additional amount of bills dated January 10, 1974, and to mature July 11, 1974 (C U S I P N o. 912793 U E 4 ), originally issued in the amount o f $1,809,540,000, the additional and original bills to be freely interchange able. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range o f accepted bids. Only those submitting com petitive tenders w ill be advised o f the acceptance or rejection thereof. T h e Secretary o f 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 w ill 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 A pril 11, 1974, in cash or other immediately avail able funds or in a like face amount o f Treasury bills maturing A pril 11, 1974. Cash and exchange tenders w ill receive equal treat ment. 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 $1,800,000,000, or thereabouts, to be dated A p ril 11, 1974, and to mature October 10, 1974 (C U S I P N o. 912793 U T 1 ) . T he bills o f both series will 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. Th ey 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 (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 D aylight Saving time, M onday, A pril 8. 1974. 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 multiples 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 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 forwarded 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 o f customers, provided the names o f the custom ers 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 Under Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code o f 1954, the amount o f 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 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 this notice prescribe the terms o f the conditions of their issue. Copies from any Federal Reserve Bank or N o. 418 (current revision) and the Treasury bills and govern o f the circular may be obtained Branch. T his Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, M onday, A pril 8, 1974, at the Securities Department of its H ead Office and at its Buffalo Branch. T ender form s for the respective series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope marked “ T end er for T reasury B ills.” T enders not requiring a deposit may be submitted by telegraph, subject to written con firm ation ; no tenders m ay 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 o f the last weekly offering of T reasury bills (9 2 -d a y bills to be issued A p ril 4, 1974, representing an additional amount o f bills dated January 3, 1974, maturing July 5, 1974; and 182-day bills dated A pril 4, 1974, matur ing O ctober 3, 1974) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 4, 1974) Range of Accepted Competitive Bids 92-Day Treasury Bills Maturing July 5,1974 P rice 182-Day Treasury Bills Maturing October 3,1974 A p p rox. equiv. annual rate P rice A p p ro x . equiv. annual rate ................................ ................ 97.890 8 .2 5 7 % 95.869 8.1 7 1 % L o w ................................... ................ 97.856 8 .3 9 0 % 95.845 8.2 1 9 % A verage 97.864 8 .3 5 8 % ! 95.849 8 .2 1 1 % ! H ig h ......................... ................ 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 8.66% for the 92-day bills, and 8.69% for the 182-day bills. (2 7 percent of the amount o f 92-day bills bid fo r at the low price was accepted.) (9 3 percent o f the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 92-Day Treasury Bills Maturing July 5,1974 A pplied for D istrict B oston ......................................... $ 47,250,000 182-Day Treasury Bills Maturing October 3,1974 A ccep ted $ 37,250,000 A pplied for $ 31,490,000 A ccepted $ 17,465,000 2,897,140,000 1,990,105,000 3,093,255,000 .................. ........... 32,040,000 32,040,000 43,300,000 10,170,000 Cleveland ......................... ........... 55,885,000 55,885,000 53,265,000 25,670,000 R ich m on d .................................. 40,780,000 39,280,000 34,910,000 20,170,000 A tlanta ....................................... 35,900,000 32,800,000 34,255,000 22,215,000 C hicago N ew Y o r k .................................. Philadelphia 1,575,480,000 ....................................... 303,170,000 81,905,000 313,820,000 35,085,000 St. L ouis ....................... ............ 72,515,000 53,740,000 57,200,000 17,850,000 M inneapolis .................. ........... 26,410,000 18,410,000 24,560,000 3,760,000 K ansas C i t y ..................... ......... 36,825,000 34,995,000 32,520,000 28,645,000 .............................. ......... 38,175,000 23,175,000 41,240,000 20,740,000 San F r a n c i s c o ................ ........... 130,805,000 100,545,000 167,860,000 31,005,000 ........................ ............ $3,716,895,000 Dallas T otal $2,500,130,000a a Includes $466,085,000 noncompetitive tenders accepted at the average price. b Includes $281,585,000 noncompetitive tenders accepted at the average price. $3,927,675,000 $1,808,255,000b Q Jr F E D E R A L R E S E R V E BANK O F NEW YORK F i s c a l Agent o f the U nited S ta te s for Student Loan Marketing A sso c ia tio n April 2, 19TU R E S U L T S OF B I D D I N G F O R S L M A N O TES 7 o C ertain U. S. G overnm ent Bond D ea lers, C om m ercial Banks, and C om m ercial P aper D e a le r s : T h e f o l l o w i n g s t a t e m e n t was a u t h o r i z e d by the S t u d e n t L o a n M a r k e t i n g A s s o c i a t i o n for i s s u a n c e today, a n n o u n c i n g the a u c t i o n r e s u l t s of its r e c e n t o f f e r i n g of Notes: The Student Loan Marketing A ssociation sold at auction today $50 m illion par value o f 28-day discount notes at an average p rice o f 99*271, which results in a rate o f discount o f 9-37 percent per annum on a 360-day "basis. The notes are dated November 1, 1973, mature on May 2, 197*+, and w ill be issued A pril b , 197^. Accepted bids ranged from a high price of 99.272 (9.36 percent discount) to a low of 99.270 (9.38 percent discount). Seventy percent of the total amount bid for at the low price was accepted. Total bids received were $1+70 million, of which $50 million were accepted. Alfred Hayes, President. 0 0, ?j*7l