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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
r Circular N o. 7 4 2 8
L
July 30, 1974

~
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J

OFFERING OF TW O SERIES OF TREASURY BILLS
$2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated May 9, 1974, Due November 7, 1974
(To Be Issued August 8, 1974)
$1,900,000,000 of 182-Day Bills, Dated August 8, 1974, Due February 6, 1975
To A ll Incorporated Banks and Trust Companies, and O thers
Concerned, in the Second Federal R eserve 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. to d a y :
T he Treasury Department, by this public notice, invites tenders
fo r tw o series o f Treasury bills to the aggregate amount o f
$4,500,000,000, o r thereabouts, to be issued August 8, 1974, as
f o llo w s :
91-day bills (to maturity date) in the amount o f
$2,600,000,000, or thereabouts, representing an additional
amount o f bills dated M ay 9, 1974, and to mature
Novem ber 7, 1974 (C U S I P N o. 912793 U X 2 ), originally
issued in the amount o f $1,801,315,000 (an additional
$100,065,000 was issued on June 5, 1974), the additional
and original bills to be freely interchangeable.
182-day bills, fo r $1,900,000,000, or thereabouts, to be dated
August 8, 1974, and to mature February 6, 1975 (C U S I P
No. 912793 V U 7 ).

o f customers provided the names o f the customers are set forth in
such tenders. Others w ill not be permitted to submit tenders except
fo r their own account. Tenders w ill be received w ithout deposit
from incorporated banks and trust companies and fro m responsible
and recognized dealers in investment securities. Tenders fro m
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 a ccom ­
panied by an express guaranty o f payment by an incorporated bank
or trust company.

The bills o f both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount w ill be payable without interest.
Th ey will be issued in bearer form in denominations o f $10,000,
$15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value)
and in book entry form to designated bidders.

Immediately after the closing hour, tenders w ill be opened at
the Federal Reserve Banks and Branches, follow in g which public
announcement w ill be made by the Treasury Department o f the
amount and price range o f accepted bids. O nly those submitting
competitive tenders w ill be advised o f the acceptance o r rejection
thereof. The 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 fo r each issue fo r $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 com petitive bids
fo r the respective issues. Settlement fo r accepted tenders in accord­
ance with the bids must be made or completed at the Federal
Reserve Bank on A ugust 8, 1974, in cash o r other immediately
available funds or in a like face amount o f Treasury bills maturing
August 8, 1974. Cash and exchange tenders w ill receive equal
treatment. Cash adjustments will be made fo r differences between
the par value o f maturing bills accepted in exchange and the issue
price o f the new bills.

Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern D aylight
Saving time, M onday, August 5, 1974. Tenders will not be received
at the Treasury Department, W ashington. Each tender must be fo r
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 forw arded in the special envelopes
which will be supplied by Federal Reserve Banks o r Branches on
application therefor.

U nder Sections 4 5 4 (b ) and 1221(5) o f the Internal Revenue
Code o f 1954, the amount o f discount at which bills issued here­
under are sold is considered to accrue when the bills are sold,
redeemed or otherwise disposed o f, and the bills are excluded from
consideration as capital assets. A ccordin gly, the ow ner 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 fo r 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
fo r which the return is made.

Banking institutions and dealers w h o 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 fo r account

Treasury Department Circular N o. 418 (current revision ) and
this notice prescribe the terms o f the Treasury bills and govern
the conditions o f their issue. Copies o f the circular m ay be obtained
from any Federal Reserve Bank o r Branch.

The bills w ill be issued fo r cash and in exchange fo r Treasury
bills maturing August 8, 1974, outstanding in the amount o f
$4,303,015,000, o f which Government accounts and Federal Reserve
Banks, fo r themselves and as agents o f foreign and international
monetary authorities, presently hold $2,566,520,000. These accounts
may exchange bills they hold fo r the bills now being offered at the
average prices o f accepted tenders.

T his Bank will receive tenders fo r both series up to 1 :30 p.m., Eastern Daylight Saving time, M on day, A ugu st 5,
1974, at the Securities Department o f its H ead O ffice and at its B uffalo Branch. T ender form s fo r the respective
series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope marked
“ T ender fo r T reasury B ills.” Tenders not requiring a deposit may be submitted by telegraph, subject to written
confirm ation; no tenders may be submitted by telephone. Payment fo r 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 (91-d ay bills to be issued A ugust 1, 1974, representing an
additional amount of bills dated M ay 2, 1974, maturing October 31, 197 4 ; and 182-day bills dated A ugust 1, 1974,
maturing January 30, 1975) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
(o

ver

)

RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS
(TW O SERIES TO BE ISSUED AUGUST 1, 1974)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing O ctober 31,1974

P rice

182-Day Treasury Bills
Maturing January 30,1975

A p p ro x . equiv.
annual rate

P rice

A p p ro x . equiv.
annual rate

H ig h

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

98.079

7 .6 0 0 %

96.03 l a

7.851'%

L ow

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

98.032

7 .7 8 5 %

95.888

8 .1 3 4 %

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

98.054

7 .6 9 8 % 1

95.928

S .0 5 5 % 1

a Excepting one tender o f $20,000.
1 These rates are on a bank discount basis. The equivalent coupon issue yields are 7.96% for the 91-day bills, and 8.51% for the
182-day bills.

(8 7 percent o f the amount o f 91-day bills
bid fo r at the low price was a ccepted.)

(1 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 ( B y Federal Reserve District)
91-Day Treasury Bills
Maturing October 31,1974
A ccep ted

A pplied f o r

D istrict

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

B oston

$

40,860,000

182-Day Treasury Bills
Maturing January 30, 1975

$

30,860,000

A pplied f o r

$

23,035,000

A ccep ted

$

13,035,000

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

3,165,875,000

2,163,485,000

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

27,635,000

25,650,000

14,170,000

14,170,000

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

82,805,000

50,295,000

52,315,000

52,315,000

R ic h m o n d ....................... ...........

45,500,000

29,000,000

29,990,000

25,740,000

Atlanta

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

37,590,000

35,045,000

20,730,000

20,730,000

C hicago

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

274,765,000

120,430,000

221,475,000

186,000,000

St. L ouis ....................... ...........

37,310,000

23,310,000

29,115,000

20,115,000

M inneapolis .................. ...........

16,270,000

14,010,000

9,300,000

9,300,000

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

27,555,000

27,555,000

25,910,000

25,410,000

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

34,940,000

24,940,000

24,815,000

19,815,000

162,590,000

55,595,000

145,040,000

102,040,000

N ew Y o r k

Cleveland

Dallas

San F rancisco ..............
T

otal

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

$3,953,695,000

$2,600,175,000b

b Includes $400,800,000 noncompetitive tenders accepted at the average price,
c Includes $235,885,000 noncompetitive tenders accepted at the average price.




2,287,640,000

1,411,440,000

$2,883,535,000

$1,900,110,000-

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