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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r C ir c u la r I N o. 7 4 0 9 1 J u n e 18, 1974 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated March 28,1974, Due September 26,1974 (To Be Issued June 27,1974) $1,900,000,000 of 182-Day Bills, Dated June 27, 1974, Due December 26, 1974 T o A ll Incorporated B anks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: F o l l o w i n g is th e t e x t o f a n o t ic e is s u e d b y the T r e a s u r y D e p a r t m e n t, r e le a s e d a t 4 p .m . t o d a y : The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $4,500,000,000, or thereabouts, to be issued June 27, 1974, as follows: 91-day bills (to maturity date) in the amount of $2,600,000,000, or thereabouts, representing an additional amount of bills dated March 28, 1974, and to mature September 26, 1974 (C U S IP No. 912793 UR5), origin ally issued in the amount of $1,801,155,000 (an addi tional $100,065,000 was issued on June 5, 1974), the additional and original bills to be freely interchangeable. 182-day bills, for $1,900,000,000, or thereabouts, to be dated June 27, 1974, and to mature December 26, 1974 (C U SIP No. 912793 V E3). The bills will be issued for cash and in exchange for Treasury bills maturing June 27, 1974, outstanding in the amount of $4,302,920,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,392,375,000. These accounts may exchange bills they hold for the bills now being offered at the average prices of accepted tenders. 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, June 24, 1974. Tenders will not be received at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders 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 and dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and borrowings thereon may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others will not be permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment 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. 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 June 27, 1974, in cash or other immediately available funds or in a like face amount of Treasury bills maturing June 27, 1974. 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. Under Sections 454(b) and 1221(5) of the Internal Revenue Code of 1954, the amount of discount at which bills issued here under are sold is considered to accrue when the bills are sold, redeemed or otherwise disposed of, and the bills are excluded from consideration 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 obtained from any Federal Reserve Bank or Branch. T h is Bank w ill receive tenders fo r both series up to 1 :30 p.m ., Eastern Daylight S avin ? time M nnd™ oa 1974, at the Securities Departm ent o f its H ead Office and at its B uffalo Branch. T e n d er form s’ fo r he resnertfve series are enclosed. Please use the appropriate form s to submit tenders and return them in the e n r W H J l T i j “ T en d er fo r T reasu ry Bills.” T enders not requiring a deposit may be submitted by w r i^ n con firm ation ; no tenders m ay be submitted by telephone. Payment for the Treasury bills cannot be made bv credit through the Treasury T ax and Loan Account. Settlement must be made in cash or other immediately available funds or tfi maturing 1 r cas'ttr'y u'llts. ^ Results o f the last w eekly offering o f T reasu ry bills (9 1 -d a y bills to be issued Tune 20 1974 renre^ntinor additional amount o f bills dated M arch 21, 1974, m aturing Septem ber 19, 1974; and 182-day bills dated Tune 20 1974 m aturing D ecem ber 19, 1974) are shown on the reverse side o f this circular. ’ A lfred H ayes, President. ( o v er ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 20, 1974) R a n g e o f A c c e p te d C o m p etitiv e B ids 91-Day Treasury Bills Maturing September 19, 1974 182-Day Treasury Bills Maturing Decem ber 19, 1974 Price Approx. equiv. annual rate Price Approx. equiv. annual rate .................................................. 97.940 8 .1 4 9 % 95.887 8 .136 % L o w ..................................................... 97.931 8 .1 8 5 % 95.862 8 .18 5% A v e r a g e .............................................. 97.933 S .1 7 7 % 1 95.867 8 .1 7 5 % x H ig h 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8.47% for the 91-day bills, and 8.65% for the 182-day bills. (1 0 0 percent o f the amount o f 91-day bills bid for at the low price was accepted.) (2 percent o f the amount o f 182-day bills bid fo r at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve District) District B oston ..................................... $ 91-Day Treasury Bills Maturing September 19, 1974 182-Day Treasury Bills Maturing Decem ber 19, 1974 A pplied for Applied for 40,770,000 Accepted $ 30,140,000 $ 15,555,000 Accepted $ 13,555,000 ............................ 4,148,835,000 2,203,350,000 3,535,770,000 1,685,760,000 ......................... 33,045,000 29,045,000 60,795,000 11,895,000 C le v e la n d ................................ 77,595,000 41,020,000 78,100,000 26,580,000 R ichm ond .............................. 69,100,000 38,570,000 44,510,000 18,210,000 .................................. 43,590,000 27,830,000 32,740,000 20,790,000 C hicago .................................. 258,320,000 85,455,000 229,250,000 33,025,000 St. L o u i s ................................ 59,395,000 24,595,000 55,625,000 18,375,000 M inneapolis ......................... 39,845,000 13,740,000 21,765,000 5,765,000 Kansas City ......................... 46,240,000 39,495,000 35,015,000 25,940,000 Dallas 59,700,000 18,730,000 29,595,000 14,595,000 156,765,000 48,235,000 121,700,000 26,000,000 N ew Y o rk Philadelphia Atlanta .................. .................. San F rancisco ..................... T o ta l ................... ......... $5,033,200,000 $2,600,205,000“ a Includes $437,775,000 noncompetitive tenders accepted at average price. i> Includes $257,020,000 noncompetitive tenders accepted at average price. $4,260,420,000 $1,900,490,000b