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FED ER A L RESERVE BANK O F NEW YORK
Fiscal Agent of the United States
r Circular No. 7 6 2 9 - 1
L
May 13, 1975
J

OFFERING OF TWO SERIES OF TREASURY RILLS
12,800,000,000 of 91-Day Bills, Additional Amount, Series Dated February 20, 1975, Due August 21, 1975
(To Be Issued May 22, 1975)
$2,800,000,000 of 182-Day Bills, Dated May 22, 1975, Due November 20, 1975
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

Following is the text of a notice issued by the Treasury Department, released at 4 p.m. to d ay :
The Treasury Department, by this public notice, invites tenders
for tw o series of Treasury bills to the aggregate amount of
$5,600,000,000, or thereabouts, to be issued M ay 22, 1975, as
fo llo w s :
91-day bills (to maturity date) in the amount of
$2,800,000,000, or thereabouts, representing an additional
amount of bills dated February 20, 1975, and to mature
A ugust 21, 1975 (C U S I P No. 912793 X K 7 ), originally
issued in the amount of $2,502,565,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $2,800,000,000, or thereabouts, to be dated
M ay 22, 1975, and to mature Novem ber 20, 1975
(C U S IP N o. 912793 X Y 7 ).
The bills will be issued for cash and in exchange for Treasury
bills maturing May 22, 1975, outstanding in the amount of
$4,808,855,000, of which Government accounts and Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,926,225,000. These accounts
may exchange bills they hold for the bills now being offered at the
average prices of accepted tenders.
The bills of both series will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided, and
at maturity their face amount will be payable without interest.
They will be issued in bearer form in denominations of $10,000,
$15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value)
and in book-entry form to designated bidders.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern D aylight
Saving time, Monday, M ay 19, 1975. Tenders will not be re­
ceived at the Treasury Department, W ashington. Each tender must
be for a minimum of $10,000. Tenders over $10,000 must be in m ul­
tiples of $5,000. In the case of competitive tenders the price offered
must be expressed on the basis of 100, w ith not more than three
decimals, e.g., 99.925. Fractions may not be used. It is urged that
tenders be made on the printed forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks or
Branches on application therefor.
Banking institutions and dealers who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of N ew York their positions with respect to Government
securities and borrowings thereon m ay submit tenders for 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 incorporated banks and trust companies and from responsible
and recognized dealers in investment securities. Tenders from others
must be accompanied by payment of 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied by an
express guaranty of payment by an incorporated bank or trust com­
pany.
Immediately after the closing hour, tenders w ill be opened at
the Federal Reserve Banks and Branches, follow ing which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. O nly those submitting
competitive tenders will be advised of the acceptance or rejection
thereof. 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 each issue for $500,000 or
less without stated price from any one bidder will be accepted in
full at the average price (in three decim als) of accepted competi­
tive bids for the respective issues. Settlem ent for accepted tenders
in accordance with the bids must be made or completed at the
Federal Reserve Bank on May 22, 1975, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing M ay 22, 1975. Cash and exchange tenders will
receive equal treatment. Cash adjustments will be made for differ­
ences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
Under Sections 454(b ) and 1221(5) of the Internal Revenue
Code of 1954, the amount of discount at which bills issued here­
under are sold is considered to accrue when the bills are sold,
redeemed or otherwise disposed of, and the bills are excluded from
consideration as capital assets. Accordingly, the owner of Treasury
bills (other than life insurance companies) issued heueunder must
include in his income tax return, as ordinary gain or loss, the
difference between the price paid for the bills, whether on original
issue or on subsequent purchase, and the amount actually received
either upon sale or redemption at maturity during the taxable year
for which the return is made.
treasu ry Department Circular N o. 418 (current revision) and
this notice prescribe the terms of the Treasury bills and govern
the conditions of their issue. Copies of the circular may be obtained
from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 19,
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 in
maturing Treasury bills.

Results of the last weekly offering of Treasury bills (91-day bills to be issued May 15, 1975, representing
an additional amount of bills dated February 13, 1975, m aturing August 14, 1975; and 182-day bills dated May 15,
1975, maturing November 13, 1975) are shown on the reverse side of this circular.
[21]




A

lfred

H

a y es,

President.
(o v e r )

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED MAY 15, 1975)

Range of Accepted Competitive Bids
9i-Day Treasury Bills
Maturing August 14, 1975

High .................................................
Low ...................................................
A v erag e............................................

182-Day Treasury Bills
Maturing November 13, 1975

Price

Discount
Rate

Investment
R ate 1

98.693
98.689
98.690

5.171%
5.186%
5.182%

5.33%
5;.34%
5.34%

Price

97.250s
97.211
97.229

1 Equivalent coupon issue yield.

Discount
Rate

Investment
R ate 1

5.440%
5.517%
5.481%

5.69%
5.77%
5.73%

a Excepting one tender of $300,000.

(100 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(78 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)
oi-Day Treasury Bills
Maturing August 14,19 7 5
District

T

otal

............................ ............

$

40,385,000
4,755,680,000
64,510,000
78,650,000
24,115,000
31,510,000
468,690,000
56,695,000
22,550,000
44,910,000
33,770,000
803,835,000

$6,425,300,000

$

24,280,000
2,034,730,000
23,485,000
32,475,000
18,940,000
25,380,000
36,545,000
24,195,000
5,600,000
29,485,000
18,770,000
530,120,000

$2,804,005,000b

b Includes $366,600,000 noncompetitive tenders from the public.
c Includes $156,235,000 noncompetitive tenders from the public.




Received

Accepted

Received

Boston ........................................
New York .................... .............
Philadelphia .................. ............
Cleveland ...................... .............
R ichm ond....................... ............
Atlanta ........................... ............
C hicago........................... ............
St. Louis ....................... ............
Minneapolis .................. ............
Kansas City .................. ............
Dallas ............................. ............
San Francisco .............. ............

182-Day Treasury Bills
Maturing Nmember 13, l 975

$

22,880,000
3,969,540,000
11,470,000
54,515,000
39,590,000
47,920,000
234,830,000
46,740,000
25,610,000
23,040,000
26,200,000
328,535,000

$4,830,870,000

Accepted

$

7,595,000
2,328,840,000
11,090,000
52,315,000
30,770,000
32,635,000
121,255,000
36,540,000
22,610,000
17,080,000
18,760,000
120,655,000

$2,800,145,000°