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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
f Circular No. 7 4 1 7 1
L
July 2, 1974
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated April 11, 1974, Due October 10, 1974
(To Be Issued July 11, 1974)
$1,900,000,000 of 182-Day Bills, Dated July 11, 1974, Due January 9, 1975
T o 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 reasu ry Department, released at 4 p.m. today:
T he Treasury Department, by this public notice, invites tenders
for tw o series o f Treasury bills to the aggregate amount of
$4,500,000,000, or thereabouts, to be issued July 11, 1974, as fo llo w s :
91-day bills (to maturity date) in the amount of
$2,600,000,000_, or thereabouts, representing an additional
amount o f bills dated A pril 11, 1974, and to mature
O ctober 10, 1974 (C U S I P N o. 912793 U T 1 ), originally
issued in the amount o f $1,801,960,000 (an additional
$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
July 11, 1974, and to mature January 9, 1975 (C U S I P
N o. 912793 V Q 6 ).
The bills will be issued for cash and in exchange for Treasury
bills maturing July 11, 1974, outstanding in the amount of
$4,310,745,000, o f which Government accounts and Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,440,125,000. These accounts
may exchange bills they hold for the bills now being offered at the
average prices o f accepted tenders.
The 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.
T h ey w ill be issued in bearer form only, and in denominations
o f $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000
(m aturity 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, July 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 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 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 and dealers w ho make primary markets in
Government securities and report daily to the Federal Reserve
Bank o f N ew Y ork their positions with respect to Government
securities and borrow ings thereon may submit tenders for account
o f customers provided the names of the customers are set forth in

such tenders. Others will not be permitted to submit tenders except
for their ow n account. Tenders w ill 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 o f 2 percent o f 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.
Immediately after the closing hour, tenders will 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 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 w ill be accepted in full
at the average price (in three decim als) 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 July 11, 1974, in cash or other immediately
available funds or in a like face amount o f Treasury bills maturing
July 11, 1974. Cash and exchange tenders w ill 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 4 5 4 (b ) and 1221(5) o f 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. 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 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 obtained
from any Federal Reserve Bank or Branch.

T h is Bank will receive tenders for both series up to 1 :30 p.m ., Eastern Daylight Saving time, M onday, July 8,
1974, at the Securities Departm ent o f its H ead Office and at its B uffalo 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 en d er fo r T reasu ry B ills.” T enders not requiring a deposit may be submitted by telegraph, subject to written
con firm ation ; 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 (90-day bills to be issued July 5, 1974, representing an
additional amount of bills dated April 4, 1974, maturing October 3, 1 9 7 4 ; and 181-day bills dated July 5, 1974.
maturing January 2, 1975) are shown on the reverse side of this circular.




A

lfred

H

a y es

.

President.
(

o ver

)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JULY 5, 1974)

R a n g e o f A cc e p te d C om p e titiv e B ids

90-Day Treasury Bills
Maturing October 3, 1974

P rice

H igh

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

181-Day Treasury Bills
Maturing January 2, 1975

A p p rox. equiv.
annual rate

P rice

A p p rox . equiv.
annual rate

98.064a

7 .7 4 4 %

95.987b

7.9 82%

L o w .....................................................

98.038

7 .8 4 8 %

95.927

8 .1 01%

A v e r a g e ..............................................

98.048

7 .8 0 8 % !

95.950

8 .0 5 5 % !

a E xcepting one tender o f $10,000.
b Excepting three tenders totaling $575,000.
1 These rates are on a bank discount basis. The equivalent coupon issue yields are 8.07% for the 90-day bills, and 8.51% for the
181-day bills.

(5 9 percent of the amount of 90-day bills
bid for at the low price was accepted.)

(7 3 percent o f the amount of 181-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve District)
90-Day Treasury Bills
Maturing October 3,1974
A ccepted

A pplied for

D istrict

B oston ..................................... .........

$

42,220,000

181-Day Treasury Bills
Maturing January 2, 1975

$

30,955,000

A pplied for

$

27,200,000

A ccepted

$

16,830,000

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

3,420,905,000

2,241,380,000

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

36,110,000

35,445,000

12,965,000

12,965,000

C le v e la n d ................................ .........

69,120,000

42,490,000

41,340,000

26,340,000

R ich m on d

46,980.000

28,480,000

32,385,000

20,385,000

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

33,390,000

28,755,000

27,085,000

25,985,000

C hicago .................................. .........

207,920,000

59,705,000

192,455,000

76,255,000

St. L o u i s ................................ .........

41,300,000

28,480,000

33,740,000

20,740,000

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

13,185,000

4,185,000

9,925,000

3,925,000

Kansas City ......................... .........

34,125,000

26,730,000

38,295,000

31,085,000

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

29,195,000

18,570,000

32,515,000

20,275,000

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

140,900,000

55,560,000

102,205,000

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

$4,115,350,000

N ew Y o r k
Philadelphia

Atlanta

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

M inneapolis

Dallas

San F rancisco
T

otal

$2,600,735,000°

c Includes $412,375,000 noncompetitive tenders accepted at average price.
d Includes $279,160,000 noncompetitive tenders accepted at average price.




2,615,905,000

1,612,220,000

$3,166,015,000

33,105,000
$1,900,110,000d

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