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FE D E R A L R ESER VE BANK O F N E W YORK Fiscal Agent of the United States [ Circular No. 7 6 1 0 1 April IS, 197S J OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated January 23, 1975, Due July 24, 1975 (To Be Issued April 24, 1975) $2,700,000,000 of 182-Day Bills, Dated April 24, 1975, Due October 23, 1975 T o A ll Incorporated B a n k s and T r u s t Com 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 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 a g g reg a te am ount of $5,400,000,000, o r thereabouts, to be issued A p ril 24, 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, or thereabouts, rep resen tin g an additional am ount of bills dated J a n u a ry 23, 1975, and to m ature Ju ly 24, 1975 ( C U S I P N o. 912793 X F 8 ) , originally issued in the am ount of $2,201,755,000, the additional and original bills to be freely interchangeable. 182-day bills, for $2,700,000,000, o r thereabouts, to be dated A p ril 24, 1975, and to m atu re O ctober 23, 1975 ( C U S I P N o. 912793 X U 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 A pril 24, 1975, outstan d in g in the am ount of $4,605,595,000, of w hich G overnm ent accounts and F e d e ral R eserve B anks, for them selves and as agents of foreign and international m o n etary au th o rities, p resently hold $2,469,505,000. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the av erag e prices of accepted tenders. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as h e rein afte r provided, and a t m a tu rity th eir face am ount will be payable w ith o u t interest. T h ey w ill be issued in b e are r fo rm 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 b o ok-entry form to designated bidders. T en d ers will be received a t F e d e ral 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 av in g time, M onday, A pril 21, 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 fo r 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 urged th at tenders be m ade on the prin ted form s and fo rw a rd 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 a nking institutions and d ealers 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 an d borrow ings th ereo n 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 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 incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities. T enders fro m 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 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 w ill be opened at 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 e xpressly 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 ubject to these reservations, noncom petitive tenders fo r 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 for accepted tenders in accordance w ith the bids m ust be m ade o r com pleted a t the F ederal R eserve B ank on A pril 24, 1975, in cash o r o ther im m ediately available funds or in a like face am ount of T rea su ry bills m atu rin g A pril 24, 1975. Cash and exchange tenders will receive equal treatm ent. C ash ad ju stm en ts 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 e re under 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 re tu rn , as o rd in ary g ain o r loss, the difference betw een the price paid for the bills, w hether 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 du rin g the taxable year fo r w hich the re tu rn is made. T re a su ry D epartm ent 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 21, 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 maturing Treasury bills. in Results of the last weekly offering of Treasury bills (91-day bills to be issued April 17, 1975, representing an additional amount of bills dated January 16, 1975, m aturing July 17, 1975; and 182-day bills dated April 17, 1975, m aturing October 16, 1975) are shown on the reverse side of this circular. A lfred H ay es , President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 17, 1975) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 17, 1975 P rice High ................................................ Low ............................... .................. A v e rag e......................... .................. 98.627a 98.591 98.600 182-Day Treasury Bills Maturing October 16, 1975 D iscount R a te In v e stm e n t R a te 1 P rice D iscount R a te In v e stm e n t R a te 1 5.432% 5.574% 5.538% 5.60% 5.75% 5.71% 97.092 97.024 97.046 5.752% 5.887% 5.843% 6 .02 % 6.17% 6 . 12% 1 E q u iv alen t coupon issue yield. a E x ce p tin g one tender of $10,000. (48 percent of the amount of 91-day bills bid for at the low price was accepted.) (29 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 July 17, 1975 D istrict T otal ............................ ............ $ 52,760,000 3,882,115,000 33,620,000 76,460,000 42,475,000 58,910,000 338,315,000 60,030,000 23,240,000 71,070,000 40,690,000 198,175,000 $4,877,860,000 $ 40,460,000 2,061,475,000 31,070,000 56,460,000 33,965,000 54,985,000 117,965,000 50,470,000 23,240,000 64,670,000 35,690,000 130,175,000 $2,700,625,000b b Includes $547,755,000 noncom petitive tenders from the public, c Includes $195,210,000 noncom petitive tenders from the public. R eceived A ccepted R eceived Boston ....................................... New York .................... ............ Philadelphia .................. ............ Cleveland ....................... ............ R ichm ond................................... Atlanta ........................... ............ C hicago........................... ............ St. Louis ....................... ............ Minneapolis .................. ............ Kansas C ity .................. ............ Dallas ............................. ............ San Francisco .............. ............ 182-Day Treasury Bills Maturing October 16, 1975 $ 22,335,000 4,018,800,000 7,465,000 52,410,000 40,960,000 31,760,000 217,240,000 50,620,000 19,160,000 29,570,000 23,430,000 213,490,000 $4,727,240,000 A ccepted $ 12,335,000 2,328,380,000 7,165,000 20, 110,000 24,460,000 30,660,000 56,885,000 24,620,000 19,160,000 26,870,000 23,430,000 126,350,000 $2,700,425,000°
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