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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States P Circular No. 7 5 5 9 "I January 28, 1975 J L OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated November 7, 1974, Due May 8, 1975 (To Be Issued February 6, 1975) $2,400,000,000 of 182-Day Bills, Dated February 6, 1975, Due August 7, 1975 T o A ll Incorporated B a n k s and T r u st C om panies, and O thers C oncerned, 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 h e T re a su ry D epartm ent, by this public notice, invites tenders for tw o series of T re a su ry bills to the a g g reg a te am ount of $5,100,000,000, o r thereabouts, to be issued F e b ru a ry 6 , 1975, as fo llo w s: 91-day bills (to m atu rity d a te ) in the am ount of $2,700,000,000, o r thereabouts, rep resen tin g an additional am ount of bills dated N ovem ber 7, 1974, and to m ature M ay 8 , 1975 ( C U S I P N o. 912793 W H 5 ) , originally issued in the am ount of $2,099,710,000, the additional and o riginal bills to be freely interchangeable. 182-day bills, for $2,400,000,000, o r thereabouts, to be dated F e b ru a ry 6 , 1975, and to m atu re A u g u st 7, 1975 ( C U S I P N o. 912793 X H 4 ). T he bills w ill be issued fo r cash and in exchange for T re a su ry bills m atu rin g F e b ru a ry 6 , 1975, o utstanding in the am ount of $4,710,780,000, of w hich G overnm ent accounts and F ed eral R eserve B anks, fo r them selves and as agents of foreign and in ternational m o n etary authorities, presently hold $2,558,580,000. T hese accounts m ay exchange bills they hold for the bills now being offered a t the a v era g e 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 hereinafter provided, and a t m atu rity their face am ount will be payable w ithout interest. T h ey 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 v alue) 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, F e b ru a ry 3, 1975. T en d ers will not be re ceived a t the T re a su ry D epartm ent, W ashington. E ac h tender m ust be for 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. I t is urg ed th a t tenders be m ade on the p rinted form s and fo rw ard ed in the special envelopes w hich will be supplied by F e d e ral R eserve B anks or B ranches on application therefor. B anking institutions an d dealers w ho m ake p rim a ry m ark e ts in G overnm ent securities and re p o rt daily to the F ed eral R eserve B ank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and borrow 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 e rs w ill n o t be p erm itted to subm it tenders except for th eir ow n account. T en d ers will be received w ithout deposit from in corporated banks and tru s t com panies and from responsible and recognized d ealers in investm ent securities. T en d ers from others 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 e xpress g u a ra n ty of paym ent by a n incorporated bank o r tru s t com pany. Im m ediately a fte r the closing hour, tenders w ill be opened a t the F e d e ral 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 w ill be advised of the acceptance o r rejection thereof. T he S e c re ta ry of the T re a su ry ex p ressly reserves the rig h t to accept o r re je c t any o r all tenders, in w hole o r in p a rt, 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 ith o u t stated price from any one bidder will be accepted in full a t the av erage price (in three decim als) of accepted com peti tive bids for the respective issues. S ettlem ent for accepted tenders in accordance w ith the bids m ust be m ade o r com pleted a t the F ed eral R eserve B ank on F e b ru a ry 6 , 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 F e b ru a ry 6 , 1975. C ash and exchange tenders will receive equal treatm en t. C ash ad ju stm en ts will be m ade fo r 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 S ections 4 5 4 (b ) and 1221(5) of the In tern a l R evenue Code of 1954, the am ount of discount a t w hich bills issued h ere under are sold is considered to accrue w hen the bills a re sold, redeem ed o r otherw ise disposed of, and the bills are excluded from c onsideration as capital assets. A ccordingly, the ow ner of T re a su ry bills (o th e r than life insurance com panies) issued h ereunder m ust include in his income ta x re tu rn , as ord in ary 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 e ith e r upon sale o r redem ption a t m atu rity d u rin g the taxable year fo r w hich the re tu rn is m ade. T re a su ry D ep artm en t C ircu la r 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 c irc 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, February 3, 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 30, 1975, representing an additional amount of bills dated October 31, 1974, maturing May 1, 1975; and 182-day bills dated January 30, 1975, maturing July 31, 1975) are shown on the reverse side of this circular. A lfred H a yes, President. RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 30, 1975) Range of Accepted Competitive Bids p i -Day Treasury Bills Maturing May I, 1975 P rice High ............................................ Low ...................................... ....... Average ................................. .... 98.610* 98.575 98.583 182-Day Treasury Bills Maturing July 31,1975 A pprox. equiv. annual rate P rice A p p ro x . equiv. annual rate 97.079 * 97.039 97.055 5.499% 5.637% 5.606% 1 5.778% 5.857% 5.825% 1 a E x ce p tin g tw o tenders to ta lin g $1,355,000. b E x ce p tin g one tender of $1,000,000. 1 T hese ra te s are on a bank discount basis. T h e equivalent coupon issue yields are 5.77% for the 91-day bills, and 6.09% fo r the 182-day bills. (26 percent of the amount of 91-day bills bid for at the low price was accepted.) (52 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) pI-Day Treasury Bills Maturing May 1 , 1975 D istrict A p p lie d fo r A ccepted f / f W Treasury m is Maturing July 31,1975 A p p lied fo r A ccepted Boston ..................... .............. New York ............... .............. Philadelphia ............ .............. Cleveland ................. .............. Richmond ................ .............. Atlanta ...................... .............. Chicago .................... .............. St. Louis .................. Minneapolis ............................ Kansas City .............. .............. Dallas ........................ .............. San Francisco .......... .............. $ 49,320,000 3,220,185,000 33,270,000 68,770,000 34,740,000 47,980,000 282,340,000 39,790,000 16,730,000 33,925,000 32,555,000 225,800,000 $ 28,750,000 2,095,835,000 30,215,000 68 ,020,000 29,010,000 37,140,000 118,740,000 25,810,000 13,730,000 31,375,000 20,555,000 101,405,000 $ 29,935,000 3,426,405,000 34,860,000 69,040,000 19,560,000 41,585,000 193,220,000 57,280,000 11,670,000 23,565,000 22,860,000 259,500,000 $ .................... .............. $4,085,405,000 $2,600,585,000 $4,189,480,000 $2,300,245,000d T otal c Includes $411,410,000 noncom petitive tenders accepted a t the average price, d Includes $169,060,000 noncom petitive tenders accepted a t the average price. 9,875,000 1,864,500,000 9,860,000 28,850,000 14,550,000 34,585,000 71,840,000 48,060,000 10,710,000 19,615,000 10,860,000 176,940,000
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