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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 7571 1 L February 18, 1975 J OFFERING OF TWO SERIES OF TREASURY BILLS 1,700,000,000 of 91-Day Bills, Additional Amount, Series Dated November 29, 1974, Due May 29, 1975 (To Be Issued February 27, 1975) $2,500,000,000 of 182-Day Bills, Dated February 27, 1975, Due August 28, 1975 T o A ll Incorporated B a n ks 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 enders will be received a t F ed eral R eserve B anks and B ranches up to the closing hour, on e-th irty p.m., E a s te rn D ay lig h t Saving time, M onday, F e b ru a ry 24, 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 for a m inim um of $10,000. T enders 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 th ree decim als, e.g., 99.925. F ra c tio n s m ay not be used. I t is urg ed th at 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 ed eral R eserve B anks or B ranches on application therefor. of custom ers, provided the nam es of the custom ers a re set fo rth in such tenders. O th e rs will not be p erm itted to subm it tenders except for th eir ow n account. T en d ers will be received w ith o u t deposit from inco rp o rated 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 o u n t 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 tru 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 e p 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 rejectio n thereof. T he S e c retary of the T re a su ry ex p ressly reserves the rig h t to accept o r re je ct any o r all tenders, in w hole o r in part, 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 o r 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 fo r the respective issues. S ettlem ent fo r accepted tenders in accordance w ith the bids m u st be m ade o r com pleted a t the F ed eral R eserve B ank on F e b ru a ry 27, 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 27, 1975. C ash and exchange tenders will receive equal trea tm e n t. C ash ad ju stm en ts will be m ade fo r differ 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 er Sections 4 5 4 (b ) and 1221(5) of the In te rn 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 a re 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 hereu n d er m ust include in his income ta x re tu rn , as o rd in ary gain o r loss, the difference betw een the price paid for the bills, w h eth er on original issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption a t m a tu rity du rin g the taxable year for w hich the re tu rn is m ade. B anking institutions and 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 Bank of N ew Y o rk th eir positions w ith respect to G overnm ent securities and b orrow ings thereon m ay subm it tenders fo r account T re a su ry D ep artm en t C ircu lar this notice prescribe the term s of the conditions of th eir issue. Copies from any F ed eral R eserve B ank o r T he 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 ag g reg a te am ount of $5,200,000,000, o r thereabouts, to be issued F e b ru a ry 27, 1975, as fo llo w s: 91-day bills (to m atu rity d a te ) in the am o u n t of $2,700,000,000, or thereabouts, representing an additional am ount of bills dated N ovem ber 29, 1974, and to m atu re M ay 29, 1975 ( C U S I P N o. 912793 W L 6 ), originally issued in the am ount of $2,102,000,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,500,000,000, o r thereabouts, to be dated F e b ru a ry 27, 1975, and to m atu re A u g u st 28, 1975 ( C U S I P No. 912793 X L 5 ). T he bills will be issued fo r cash and in exchange fo r T re a su ry bills m atu rin g F e b ru a ry 27, 1975, o u tstan d in g in the am ount of $4,805,640,000, of w hich G overnm ent accounts and F e d e ral R eserve Banks, fo r them selves and as agents of foreign and in ternational m onetary authorities, presently hold $2,753,300,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the average 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 atu rity value) and in book-entry form to designated bidders. N o. 418 (c u rre n t revision) and the T re a su ry bills and govern of the c irc u la r m ay be obtained B ranch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, Febru ary 24, 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 retiyn 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 February 20, 1975, representing an additional amount of bills dated November 21, 1974, maturing May 22, 1975; and 182-day bills’dated February 20, 1975, maturing August 21, 1975) are shown on the reverse side of this circular. A lfred H a y e s , President. ( o ver ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED FEBRUARY 20, 1975) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing May 22, 1975 P rice High ............................................ Low ............................................ Average ...................................... 98.645 98.628 98.633 182-Day Treasury Bills Maturing August 21 , 1975 A p p ro x . equiv. annual rate 5.360% 5.428% S.408%1 P rice A p p ro x . equiv. annual rate 97.246* 97.222 97.228 5.447%& 5.495% 5.483%1 a E x cep tin g one tender of $750,000. 1 T hese rate s are on a bank discount basis. T he equivalent coupon issue yields are 5.56% for the 91-day bills, and 5.72% for the 182-day bills. (56 percent of the amount of 91-day bills bid for at the low price was accepted.) (93 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) 91 -Day Treasury Bills Maturing May 22, 1975 D istrict A p p lied fo r Boston .................... ............... New York ............... ............... Philadelphia ........... ............... Cleveland ................. ............... Richmond ............... ............... Atlanta ..................... ............... Chicago ................... ............... St. Louis ................. ............... Minneapolis ............. ............... Kansas City ............. ............... Dallas ....................... ............ San Francisco ......... ............... T o tal ................... ........... . A ccepted A p p lied fo r A ccepted $ 46,150,000 3,207,375,000 25,670,000 40,885,000 66,560,000 35,585,000 275,245,000 48,635,000 19,060,000 42,315,000 34,610,000 250,775,000 $ 27,710,000 2,135,845,000 25,170,000 38,245,000 25,060,000 25,800,000 168,530,000 26,855,000 6,450,000 31,975,000 19,610,000 169,340,000 $ 21,515,000 3,803,355,000 18,870,000 49,130,000 41,055,000 16,650,000 269,545,000 49,405,000 14,915,000 27,845,000 18,480,000 319,940,000 $ 5,515,000 2,084,995,000 10,870,000 19,130,000 7,045,000 9,470,000 149,095,000 23,405,000 2,395,000 9,840,000 5,480,000 173,135,000 $4,092,865,000 $2,700,590,000b $4,650,705,000 $2,500,375,000® b Includes $371,275,000 noncom petitive tenders from the public, c Includes $102,020,000 noncom petitive tenders from the public. 182-Day Treasury Bills Maturing August 21 , 1975
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