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FED ER AL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States

[

Circular No. 7579
March 5. 1975

TREASURY TO AUCTION $3.25 BILLION OF NOTES
To All Bunking Institutions, und Others Concerned,
in the Second Federal Reserve District:

The following statement was made public March 4 by the Treasury Department:
The Treasury will auction to the public up to $1.75 billion of 6-year 8-month notes and up to $1.5 billion of
14-month notes. Additional amounts of these notes may be issued at the average price of accepted tenders to
Government accounts and to Federal Reserve Banks for themselves and as agents of foreign and international
monetary authorities.
The notes to be auctioned will be:
An additional amount of the 7-3/4% Treasury Notes of Series B-1981 dated November 15, 1974, due
November 15, 1981 (CUSIP No. 912827 EA6) with interest payable on May 15 and November 15, and
Treasury Notes of Series M-1976 dated March 25, 1975, due May 31, 1976 (CUSIP No. 912827 EG3) with
interest payable on November 30, 1975, and May 31, 1976. The coupon rate will be determined after tenders
are allotted.
The 6-year 8-month notes will be issued in registered and bearer form in denominations of $1,000, $5,000,
$10,000, $100,000 and $1,000,000. The 14-month notes will be issued in registered and bearer form in
denominations ot $5,000, $10,000, $100,000 and $1,000,000. Both notes will be issued in book-entry form to
designated bidders. Delivery of 6-year 8-month bearer notes will be made on March 19, 1975, and delivery of
14-month bearer notes will be made on March 25, 1975. Payment for the notes may not be made through tax and
loan accounts.
Tenders tor the 6-year 8-month notes will be received up to 1:30 p.m., Eastern Daylight Saving time, Tuesday,
March 11, and tenders for the 14-month notes will be received up to 1:30 p.m., Eastern Daylight Saving time,
Thursday, March 13, at any Federal Reserve Bank or Branch and at the Bureau of the Public Debt, W ashington,
D.C. 20226; provided, however, that noncompetitive tenders will be considered timely received if they are mailed to
any such agency under a postmark no later than March 10 for the 6-year 8-month notes and March 12 for the
14-month notes. Each tender for the 6-year 8-month notes must be in the am ount of $1,000 or a multiple thereof.
Each tender for the 14-month notes must be in the am ount of $5,000 or a multiple thereof. Each tender must state
the price offered or yield desired, if a competitive tender, or the term “ noncompetitive” , if a noncompetitive tender.
Competitive tenders for the 6-year 8-month notes must be expressed in terms of price, in two decimals, e.g.,
100.00. Tenders at a price less than 98.51 will not be accepted. Tenders at the highest prices will be accepted to
the extent required to attain the amount offered. Successful competitive bidders will be required to pay for the
notes at the price they bid. Noncompetitive bidders will be required to pay the average price of all accepted
competitive tenders; the price may be 100.00, or more or less than 100.00.
Competitive tenders for the 14-month notes must be expressed in terms of annual yield in two decimal places,
e.g., 6.02, and not in terms of a price. Tenders at the lowest yields, and noncompetitive tenders, will be accepted to
the extent required to attain the amount offered. After a determ ination is made as to which tenders are accepted, a
coupon yield will be determined to the nearest 1/8 of 1 percent necessary to make the average accepted price 100.00
or less. That will be the rate of interest that will be paid on all of the notes. Based on such interest rate, the price
on each competitive tender allotted will be determined and each successful competitive bidder will pay the price
corresponding to the yield he bid. Price calculations will be carried to three decimal places on the basis of price per
hundred, e.g., 99.923, and the determ inations of the Secretary of the Treasury shall be final. Tenders at a yield that
will produce a price less than 99.751 will not be accepted. Noncompetitive bidders will be required to pay the
average price of accepted competitive tenders; the price will be 100.00 or less.



(Over)

Fractions may not be used in tenders. The notation “ TENDER FOR TREASURY NOTES (Series M-1976 or
B-1981)” should be printed at the bottom of the envelopes in which the tenders are submitted.
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 reservations noncompetitive tenders for
$500,000 or less for each issue will be accepted in full at the average price of accepted competitive tenders.
Commercial banks, which for this purpose are defined as banks accepting demand deposits, and dealers who
make primary m arkets in Government securities and report daily to the Federal Reserve Bank of New York their
positions with respect to Government securities and borrowings thereon, may submit tenders for the account of
customers provided the names of the customers are set forth in such tenders. Others will not be permitted to submit
tenders except for their own account.
Tenders will be received without deposit from commercial and other banks for their own account,
Federally-insured savings and loan associations, States, political subdivisions or instrumentalities thereof, public
pension and retirem ent and other public funds, international organizations in which the United States holds
membership, foreign central banks and foreign States, dealers who make primary markets in Government securities
and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and
borrowings thereon. Federal Reserve Banks, and Government accounts. Tenders from others must be accompanied
b\ payment of 5 percent of the face am ount of notes applied for. However, bidders who submit checks in payment
on tenders subm itted directly to a Federal Reserve Bank or the Treasury may find it necessary to submit full
payment for the notes with their tenders in order to meet the time limits pertaining to checks as hereinafter set
forth. Allotment notices will not be sent to bidders who submit noncompetitive tenders.
Payment for accepted tenders for the 6-year 8-month notes must be completed on Wednesday, March 19, 1975,
and include accrued interest from November 15, 1974 to March 19, 1975, in the am ount of $26.54696 per $1,000 of
notes allotted. Payment for accepted tenders for the 14-month notes must be completed on Tuesday, March 25,
1975. Payment must be in cash, in other funds immediately available to the Treasury by that payment date or by
check drawn to the order of the Federal Reserve Bank to which the tender is subm itted, or the United States
Treasury if the tender is submitted to it, which must be received at such Bank or at the Treasury no later than:
(1) Monday, March 17, 1975, for the 6-year 8-month notes and Thursday, March 20, 1975, for the 14-month notes if
the check is drawn on a bank in the Federal Reserve District of the Bank to which the check is submitted, or the
Fifth Federal Reserve District in case of the Treasury, or (2) Friday, M arch 14, 1975, for the 6-year 8-month notes
and Tuesday, March 18, 1975, for the 14-month notes if the check is drawn on a bank in another district. Checks
received after the dates set forth in the preceding sentence will not be accepted unless they are payable at a Federal
Reserve Bank. Where full payment is not completed on time, the allotment will be canceled and the deposit with
the tender up to 5 percent of the am ount of notes allotted will be subject to forfeiture to the United States.
N o n co m p etitiv e b idders should be aw are th a t they m ay have to pay m ore th a n face value for the 7 -3/4
p e rc e n t notes and th at, therefore, the yield on these notes m ay be less th a n 7-3/4 percent.
T h e official offering circulars and ten d er form s will be m ailed to you as soon as possible.




A L F R E D H A Y ES,

President.