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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ Circular No. 7 6 0 4 ”1 April 8, 197S J OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated January 16, 1975, Due July 17, 1975 (To Be Issued April 17, 1975) $2,700,000,000 of 182-Day Bills, Dated April 17, 1975, Due October 16, 1975 T o A ll Incorporated B a n k s and T r u s t C om panies, 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 h e 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 ag g reg a te am ount of $5,400,000,000, or thereabouts, to be issued A pril 17, 1975, as fo llo w s : 91-day bills (to m atu rity d ate) in the am ount of $2,700,000,000, or thereabouts, representing an additional am ount of bills dated J a n u a ry 16, 1975, and to m ature Ju ly 17, 1975 ( C U S I P N o. 912793 X E 1 ), originally issued in the am ount of $2,205,700,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,700,000,000, or thereabouts, to be dated A pril 17, 1975, and to m ature O ctober 16, 1975 ( C U S I P N o. 912793 X T 8 ). T he bills will be issued for cash and in exchange for T rea su ry bills m atu rin g A p ril 17, 1975, outstanding in the am ount of $4,606,995,000, 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 international m o n etary au thorities, presently hold $2,624,630,000. 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 w ill be issued on a discount basis under com petitive and noncom petitive bidding as herein after provided, and a t m a tu rity th eir 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 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, o n e-th irty p.m., E a s te rn D aylight S aving time, M onday, A pril 14, 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 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 ractio n s m ay n o t be used. I t is urged th a t tenders be m ade on the printed 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 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 will not be perm itted to subm it tenders except for th eir 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 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 are accom panied by an e x p ress g u a ran ty of paym ent by an incorporated bank o r tru st com pany. Im m ediately afte 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 ecretary of the T re a su ry expressly reserves the rig h t to accept o r re je ct 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 ubject 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 A pril 17, 1975, in cash o r o th e r im m ediately available funds o r in a like face am ount of T re a su ry bills m atu rin g A pril 17, 1975. C ash and exchange tenders will receive equal treatm ent. C ash adjustm ents 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 er 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 than life insurance com panies) issued heueunder m ust include in his income ta x retu rn , as o rd in ary gain o r loss, the difference betw een the price paid fo r the bills, w hether 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 fo r w hich the re tu rn is made. T re a su ry D ep artm en t C ircu lar No. 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 Daylight Saving time, Monday, April 14, 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 firm ation; 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 April 10, 1975, representing an additional amount of bills dated January 9, 1975, m aturing July 10, 1975; and 182-day bills dated April 10, 1975, m aturing October 9, 1975) are shown on the reverse side of this circular. [1 6 J A lfred H a yes, President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 10, 1975) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 10, 1975 P rice High .............................. .................. Low ............................... .................. A v e rag e ......................... .................. 98.492a 98.471 98.478 182-Day Treasury Bills Maturing October 9, 1975 D iscount R ate In v estm e n t R a te 1 5.966% 6.049% 6 .021% 6.16% 6.25% 6 .22 % P rice 96.842b 96.755 96.789 1 E quiv alen t coupon issue yield. a E x cep tin g five tenders to ta lin g $1,205,000. D iscount R ate In v e stm e n t R a te 1 6.247% 6.419% 6.351% 6.56% 6.74% 6.67% ’E xcep tin g six tenders totalin g $1,390,000. (20 percent of the amount of 182-day bills (89 percent of the amount of 91-day bills bid for at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 91-Day Treasury Bills Maturing July , 0.1975 D istrict T otal A ccepted R eceived Boston ........................ ............ New York .................... ............ Philadelphia .................. ............ Cleveland ....................... ............ R ich m o n d ...... ................ ............ A tlanta ........................... ............ C hicago........................... ............ St. Louis ....................... ............ Minneapolis .................. ............ Kansas City .................. ............ Dallas ............................. ............ San Francisco .............. ............ ............................ ............ $ 57,685,000 3,909,155,000 83,930,000 128,940,000 35,760,000 45,875,000 381,870,000 46,930,000 16,055,000 57,660,000 31,270,000 249,305,000 $5,044,435,000 $ 27,520,000 2,154,450,000 29,855,000 82,440,000 26,990,000 44,110,000 136,325,000 29,275,000 15,605,000 44,230,000 25,160,000 84,715,000 $2,700,675,000° c Includes $463,815,000 noncom petitive tenders from the public, d Includes $154,560,000 noncom petitive tenders from the public. , iSi-D ay Treasury Bills Maturmg October 9, , 975 R eceived $ 19,375,000 3,224,780,000 42,385,000 41,055,000 22,270,000 26,975,000 239,725,000 31,795,000 6,565,000 17,515,000 9,785,000 677,745,000 $4,359,970,000 A ccepted $ 9,375,000 1,979,780,000 7,385,000 16,055,000 12,020,000 24,975,000 61,725,000 15,795,000 4,565,000 16,515,000 9,785,000 642,245,000 $2,800,220,000d
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