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FED ER A L RESERVE BANK O F N EW YORK Fiscal Agent of the United States C Circular No. 7 5 8 9 March 18, 1975 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated December 26, 1974, Due June 26, 1975 (To Be Issued March 27, 1975) $2,600,000,000 of 182-Day Bills, Dated March 27, 1975, Due September 25, 1975 To A ll Incorporated B a n k s and T r u s t Com panies, and O thers Concerned, in the S econd 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 for tw o series of T re a su ry bills to the ag g reg a te am ount of $5,100,000,000, or thereabouts, to be issued M a rch 27, 1975, as fo llo w s: 91-day bills (to m atu rity d a te ) in the am ount of $2,500,000,000, o r thereabouts, representing an additional am ount of bills dated D ecem ber 26, 1974, and to m ature June 26, 1975 ( C U S I P No. 912793 W Q 5 ), originally issued in the am ount of $2,003,795,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,600,000,000, o r thereabouts, to be dated M a rch 27, 1975, and to m atu re Septem ber 25, 1975 ( C U S I P N o. 912793 X Q 4 ). T he bills will be issued fo r cash and in exchange for T rea su ry bills m atu rin g M arch 27, 1975, outstan d in g in the am ount of $4,400,905,000, of w hich G overnm ent accounts and F ed eral R eserve Banks, for them selves and as agents of foreign and international m onetary au thorities, presently hold $2,728,945,000. 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 at m atu rity their face am ount will be payable w ithout interest. T hey will be issued in bearer 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 en d ers 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 aylight Saving time, M onday, M arch 24, 1975. T enders 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 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 than three decim als, e.g., 99.925. F ra c tio n s m ay not be used. It is urged th a t tenders be made 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. B anking institutions and dealers w ho m ake p rim a ry 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 borrow ings thereon m ay submit* tenders for account of custom ers, provided the nam es of the custom ers are set fo rth in such tenders. O th e rs will not be p erm itted to subm it tenders except for their ow n account. T en d ers will be received w ithout deposit from incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T en d ers from 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 are accom panied by an ex p ress 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 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 expressly reserves the rig h t to accept o r re je c t any or all tenders, in whole o r in p art, and his action in any such respect shall be final. S ub ject to these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be accepted in full a t the average price (in three 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 ed eral R eserve B ank on M arch 27, 1975, in cash or o ther im m ediately available funds o r in a like face am ount of T re a su ry bills m atu rin g M arch 27, 1975. C ash and exchange tenders will receive equal treatm ent. C ash adjustm ents will be m ade for 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 ere u nder are sold is considered to accrue w hen the bills are sold, redeem ed or 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 heueunder m ust include in his income ta x retu rn , as o rd in ary g a in o r loss, the difference betw een the price paid fo r the bills, w h eth er on original issue or on subsequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity d u rin g the taxable year for w hich the re tu rn is made. T re a su ry D epartm ent 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 Daylight Saving time, Monday, March 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 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 la x 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 March 20, 1975, representing an additional amount of bills dated November 4, 1974, maturing June 19, 1975; and 182-day bills dated March 20 1975, maturing September 18, 1975) are shown on the reverse side of this circular. A lfred H a y e s , President. ( ov er ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 20, 1975) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing September 18,1975 91 -Day Treasury Bills Maturing June 19 , 1975 High .......................... ................ Low ............................ ................ Average...................... ................ P rice D iscount R a te In v e stm e n t R a te 1 98.654 98.636 98.641 5.325% 5.396% 5.376% 5.49% 5.56% 5.54% P rice 97.256a 97.226 97.233 D iscount R ate In v estm e n t R a te 1 5.428% 5.487% 5.473% 5.67% 5.74% 5.72% 1 E quivalent coupon issue yield. a E x ce p tin g tw o tenders totaling $830,000. (36 percent of the amount of 91-day bills bid for at the low price was accepted.) (89 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 91 -Day Treasury Bills Maturing June 19, 197 j D istrict Boston ........................ ........... New York .................. ........... Philadelphia ................ ........... Cleveland .................... ........... Richmond .................... ........... Atlanta ........................ ........... Chicago........................ ........... St. Louis .................... ........... Minneapolis ................ ........... Kansas City ................. ........... Dallas .......................... ........... San Francisco ............. ........... T o t a l .............................. A ccepted R eceived ........... $ 45,780,000 3,316,460,000 54,320,000 54,560,000 34,680,000 35,740,000 458,645,000 42,980,000 22,335,000 38,390,000 30,920,000 164,835,000 $4,299,645,000 $ R eceived A ccepted 34,570,000 1,965,185,000 29,320,000 52,535,000 26,070,000 29,375,000 180,435,000 32,030,000 22,235,000 36,035,000 22,280,000 70,110,000 $ 27,280,000 3,676,255,000 31,850,000 46,545,000 21,125,000 19,230,000 235,885,000 26,570,000 14,220,000 19,320,000 19,955,000 393,780,000 $ 17,280,000 2,003,700,000 6,850,000 29,545,000 18,505,000 11,730,000 91,175,000 15,370,000 8 ,220,000 13,125,000 6,845,000 278,470,000 $2,500,180,000b $4,532,015,000 $2,500,815,000° b Includes $418,175,000 noncom petitive tenders from the public. c Includes $128,345,000 noncom petitive tenders from the public. 182-Day Treasury Bills Maturing September 18, 1975
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