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FED ERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 7 5 4 9 L January 14, 1975 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,600,000,000 of 91-Day Bills, Additional Amount, Series Dated October 24, 1974, Due April 24, 1975 (To Be Issued January 23, 1975) $2,200,000,000 of 182-Day Bills, Dated January 23, 1975, Due July 24, 1975 T o A ll Incorporated B a n k s and T r u st Companies, and O thers Concerned, in the Second F ederal R eserve D istric t: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today : T he T re a su ry D epartm ent, by this public notice, invites tenders fo r tw o series of T re a su ry bills to the a g g reg ate am ount of $4,800,000,000, o r thereabouts, to be issued Ja n u a ry 23, 1975, as fo llo w s: 91-day bills (to m atu rity d a te ) in the am ount of $2,600,000,000, o r thereabouts, representing an additional am ount of bills dated O ctober 24, 1974, and to m ature A pril 24, 1975 ( C U S I P No. 912793 W F 9 ), originally issued in the am ount of $2,002,540,000, the additional and original bills to be freely interchangeable. 182-day bills, for $ 2 ,200 ,000 ,000 , o r thereabouts, to be dated Ja n u a ry 23, 1975, and to m ature Ju ly 24, 1975 ( C U S I P N o. 912793 X F 8 ). T he bills will be issued for cash and in exchange fo r T re a su ry bills m atu rin g Ja n u a ry 23, 1975, outstanding in the am ount of $4,603,965,000, of w hich G overnm ent accounts and F ederal R eserve B anks, fo r them selves and as agents of foreign and international m onetary authorities, presently hold $2,697,050,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the a verage prices of accepted tenders. T he bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as herein after provided, and a t m atu rity th eir face am ount will be payable w ithout interest. T hey will be issued in b e are r form in denom inations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity value) and in book-entry form to designated bidders. T enders will be received a t F ed eral R eserve B anks and B ranches up to the closing hour, o n e-th irty p.m., E a s te rn S ta n d a rd time, M onday, Ja n u a ry 20, 1975. T en d ers will not be re ceived a t the T re a su ry D epartm ent, W ashington. E ach tender m ust be fo r a m inim um of $10,000. T en d ers over $10,000 m ust be in m ul tiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100 , w ith not m ore th an three decim als, e.g., 99.925. F ra c tio n s m ay not be used. It is urg ed th at tenders be m ade on the printed form s and forw arded in the special envelopes w hich will be supplied by F ed eral R eserve B anks or B ranches on application therefor. B anking institutions and dealers who m ake prim ary m ark ets in G overnm ent securities and re p o rt daily to the F ed eral Reserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and b o rrow ings thereon m ay subm it tenders fo r account of custom ers, provided the nam es of the custom ers are set fo rth in such tenders. O th ers will not be perm itted to subm it ten d ers except for th eir ow n account. T en d ers will be received w ith o u t deposit from incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers fro m oth ers m ust be accom panied by paym ent of 2 percent of the face am ount of T re a su ry bills applied for, unless the tenders a re accom panied by an express g u a ran ty of paym ent by an incorporated bank o r tr u s t com pany. Im m ediately a fte r the closing hour, tenders will be opened a t the F ed eral R eserve B anks and B ranches, follow ing w hich public announcem ent will be m ade by the T re a su ry D ep artm en t of the am ount and price range of accepted bids. O nly those subm itting com petitive tenders will be advised of the acceptance o r rejection thereof. T he S e c retary of the T re a su ry e xpressly reserves the rig h t to accept o r re je ct any o r all tenders, in w hole o r in p art, and his action in any such respect shall be final. S u b ject to these reservations, noncom petitive tenders fo r each issue fo r $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in th ree decim als) of accepted com peti tive bids for the respective issues. S ettlem ent fo r accepted tenders in accordance w ith the bids m ust be m ade o r com pleted a t the F ederal R eserve B ank on Ja n u a ry 23, 1975, in cash o r o th er im m ediately available funds o r in a like face am ount of T re a su ry bills m atu rin g Ja n u a ry 23, 1975. C ash and exchange tenders will receive equal treatm en t. C ash ad ju stm en ts w ill be m ade for d iffer ences betw een the p a r value of m atu rin g bills accepted in exchange and the issue price of the new bills. U n d e r Sections 4 5 4 (b ) and 1221(5) of the In tern a l Revenue Code of 1954, the am ount of discount a t w hich bills issued h e re under are sold is considered to accrue w hen the bills are sold, redeem ed o r otherw ise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner of T re a su ry bills (o th e r th an life insurance com panies) issued h ereunder m ust include in his incom e ta x re tu rn , as o rdinary gain o r loss, the difference betw een the price paid fo r the bills, w h eth er on original issue o r on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity du rin g the taxable year for w hich the re tu rn is m ade. T re a su ry D ep artm en t C ircu lar N o. 418 (c u rre n t revision) and this notice prescribe the term s of the T re a su ry bills and govern the conditions of th eir issue. Copies of the circ u la r m ay be obtained from any F ed eral R eserve B ank o r B ranch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, January 20. 1975, 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 con firmation; 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 (91-day bills to be issued January 16, 1975, representing an additional amount of bills dated October 17, 1974, maturing April 17, 1975; and 182-day bills dated January 16, 1975, maturing July 17, 1975) are shown on the reverse side of this circular. A lfred H a y e s, President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 16, 1975) Range of Accepted Competitive Bids pi-Day Treasury Bills Maturing April 17 , 7975 P rice High ........................... ................ Low ....................... ................ Average ............ ................ 182-Day Treasury Bills Maturing July 17 , 1975 A p p ro x . equiv. annual rate Price 6.646% 6.698% 6.678%1 98.320 98.307 98.312 A p p ro x . equiv. annual rate 96.654 96.637 96.640 6.618% 6.652% 6.646%1 a E xcepting one tender of $410,000. 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 6.89% for the 91-day bills, and 6.97% for the 182-day bills. (54 percent of the amount of 91-day bills bid for at the low price was accepted.) (79 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 District) p i-Day Treasury Bills Maturing April 17 , 1975 Boston .................................... New York .................. ............ Philadelphia .............. ............ Cleveland .................... ............ Richmond .................. ........... Atlanta ........................ ........... Chicago ...................... ........... St. Louis .................... ........... Minneapolis ............................ Kansas City ................ ........... Dallas .......................... ........... San Francisco ............. ........... T otal A ccepted A p p lied fo r D istrict ........................ ........... A pplied fo r A ccepted $ 60,620,000 3,594,830,000 34,980,000 55,755,000 31,540,000 62,625,000 318,330,000 45,525,000 21,475,000 69,725,000 38,955,000 386,785,000 $ 33,405,000 1,932,685,000 31,550,000 48,020,000 28,240,000 38,375,000 126,675,000 32,675,000 5,475,000 43,855,000 25,185,000 254,770,000 $ 27,155,000 3,841,420,000 40,580,000 119,970,000 62,255,000 53,955,000 241,225,000 58,395,000 17,490,000 35,065,000 25,180,000 389,750,000 $ $4,721,145,000 $2,600,910,000b $4,912,440,000 $2,202,895,000° b Includes $484,320,000 noncom petitive tenders accepted at the average price. c Includes $273,215,000 noncom petitive tenders accepted at the average price. 182-Day Treasury Bills Maturing July 17 , 1975 13,395,000 1,770,220,000 15,580,000 29,040,000 20,570,000 22,595,000 39,205,000 14,595,000 2,490,000 27,855,000 15,180,000 232,170,000
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