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FED ER AL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States
Circular No. 7 6 7 2 *1
July 22, 1975
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,900,000,000 of 91-Day Bills, Additional Amount, Series Dated May 1, 1975, Due October 30, 1975
(To Be Issued July 31, 1975)
$2,900,000,000 of 182-Day Bills, Dated July 31, 1975, Due January 29, 1976
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 yesterday by the Treasury Department:
The Treasury Department, by this public notice, invites tenders
for two series of Treasury bills to the aggregate amount of
$5,800,000,000, or thereabouts, to be issued July 31, 1975, as fo llo w s:
91-day bills (to maturity date) in the amount of
$2,900,000,000, or thereabouts, representing an additional
amount of bills dated M ay 1, 1975, and to mature
October 30, 1975 (C U S IP N o. 912793 X V 3 ), originally
issued in the amount of $2,700,845,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $2,900,000,000, or thereabouts, to be dated
July 31, 1975, and to mature January 29, 1976 (C U S IP
N o. 912793 Y R 1 ).
The bills will be issued for cash and in exchange for Treasury
bills maturing July 31, 1975, outstanding in the amount of
$5,002,550,000, of which Government accounts and Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,650,735,000. 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, July 28, 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, with 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 may 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 will 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. Only 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 July 31, 1975, in cash or other im­
mediately available funds or in a like face amount of Treasury
bills maturing July 31, 1975. Cash and exchange tenders w ill re­
ceive equal treatment. Cash adjustments will be made for differences
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 hereunder 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.
Treasury 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, July 28,
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 July 24, 1975, representing an ad­
ditional amount of bills dated April 24, 1975, maturing October 23, 1975; and 182-day bills dated July 24, 1975, matur­
ing January 22, 1976) are shown on the reverse side of this circular.
r
*
A lfred H a y es.
f3 1,I
/
L 1
President.



(o v e r )

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JULY 24, 1975)

Range of Accepted Competitive Bids
9 1 -Day Treasury Bills
Maturing October 23, 197 j
Price

High ........................... ................
Low ........................... ................
Average ..................... ................

98.434a
98.411
98.421

Discount
Rate

Investment
R ate 1

6.195%
6.286%
6.247%

6.40%
6.49%
6.45%

1 Equivalent coupon issue yield.
a E xcepting three tenders totaling $1,490,000.

182 -Day Treasury Bills
Maturing January 22, 1976
Price

96.672b
96.635
96.650

Discount
Rate

Investment
R ate 1

6.583%
6.656%
6.626%

6.92%
7.00%
6.97%

---------------*>Excepting two tenders totaling $215,000.

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

(56 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)
9 1 -Day Treasury Bills
Maturing October 23, 1975
District

Received

Boston ....................... ...........
New York .................. ............
Philadelphia ................ ............
Cleveland .................... ...........
Richmond .................. ............
Atlanta ....................... ...........
Chicago ...................... ...........
St. Louis .................... ...........
Minneapolis ................ ...........
Kansas City ................ ...........
Dallas ........................ ...........
San Francisco ........................
T

o tal

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

$

66,355,000
3,743,510,000
56,495,000
64,430,000
38,470,000
44,825,000
187,720,-000
48,770,000
26,315,000
53,190,000
43,110,000
130,505,000

$4,503,695,000

Accepted

Received

$ 56,355,000
2,241,620,000
56,470,000
60,770,000
32,440,000
44,325,000
71,140,000
37,280,000
21,315,000
52,690,000
40,110,000
85,505,000

$ 27,055,000
4,407,200,000
71,180,000
200,630,000
66,870,000
60,765,000
284,140,000
60,445,000
16,855,000
29,215,000
39,580,000
284,420,000

$ 27,055,000
2,197,400,000
44,980,000
180,630,000
52,170,000
50,445,000
93,640,000
41,445,000
7,855,000
27,715,000
22,700,000
153,980,000

$2,800,020,000c

$5,548,355,000

$2,900,015,000d

c Includes $512,775,000 noncompetitive tenders from the public.
d Includes $240,720,000 noncompetitive tenders from the public.




182 -Day Treasury Bills
Maturing January 22, 1976
Accepted