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FED ER AL RESERVE BANK
OF

NEW

YORK

Fiscal Agent of the United States
C ircular No. 7673
July 23. 1975

[
TREASURY ANNOUNCES AUGUST REFINANCING

To A ll Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was made public today by the Treasury Department:
The Treasury will auction to the public next week up to $3.0 billion of 2-3/4-year notes, up to $2.0 billion of 7-year
notes, and up to $0.8 billion of 25-year bonds. This will refund $4.8 billion of notes held by the public maturing August 15,
and will raise $1.0 billion new cash. Additional amounts of the notes and bonds may be issued at the average price of
accepted tenders to Government accounts and to Federal Reserve Banks for themselves and as agents of foreign and
international monetary authorities, which hold $2.9 billion of maturing notes.
The notes and bonds to be auctioned will be:
Treasury Notes of Series F-1978, dated August 15. 1975, due May 15, 1978 (CUSIP No. 912827 ET5) with interest
payable on May 15, and November 15, 1976, and thereafter on May 15 and November 15,
Treasury Notes of Series B-1982, dated August 15, 1975, due August 15, 1982 (CUSIP No. 912827 EU2) with
interest payable on February 15 and August 15, and
Treasury Bonds of 1995-2000, dated August 15, 1975, due August 15, 2000, callable at the option of the United
States on any interest payment date on and after August 15, 1995 (CUSIP No. 912810 BV9) with interest payable
on February 15 and August 15.
The coupon rates for the notes and bonds will be determined after tenders are allotted.
Payment for the securities must be made on August 15, 1975. Payment may not be made through tax and loan
accounts. The 2-3/4-year notes will be issued in denominations of $5,000, $10,000, $100,000 and $1,000,000. The 7-year
notes and the bonds will be issued in denominations of $1,000, $5,000, $10,000, $100,000 and $1,000,000. The securities
will be issued in registered and bearer form and will be available for issue in book-entry form. Bearer securities will be
delivered on August 15, 1975.
Tenders for the 2-3/4-year notes will be received up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, July 29,
tenders for the 7-year notes will be received up to 1:30 p.m., Eastern Daylight Saving time, Wednesday, July 30, and tenders
for the bonds will be received up to 1:30 p.m., Eastern Daylight Saving time, Thursday, July 31, at any Federal Reserve
Bank or Branch and at the Bureau of the Public Debt, Washington, D. C. 20226; provided, however, that noncompetitive
tenders will be considered timely received if they are mailed to any such agency under a postmark no later than July 28 for
the 2-3/4-year notes, July 29 for the 7-year notes, and July 30 for the bonds. Tenders for the 2-3/4-year notes must be in the
amount of $5,000 or a multiple thereof. Tenders for the 7-year notes and the bonds must be in the amount of $1,000 or a
multiple thereof. Each tender must state the yield desired, if a competitive tender, or the term “noncompetitive”, if a
noncompetitive tender.
Competitive tenders must be expressed in terms of annual yield in two decimal places, e.g., 7.11, and not in terms of a
price. Tenders at the lowest yields, and noncompetitive tenders, will be accepted to the extent required to attain the
amounts offered. After a determination is made as to which tenders are accepted, a coupon yield will be determined for
each issue to the nearest 1/8 of 1 percent necessary to make the average accepted prices 100.000 or less. Those will be the
rates of interest that will be paid on all of the securities of each issue. Based on such interest rates, the price on each
competitive tender allotted will be determined and each successful competitive bidder will pay the price corresponding to
the yield bid. Price calculations will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the
determinations of the Secretary of the Treasury shall be final. Tenders at a yield that will produce a price less than 99.501
for the 2-3/4-year notes. 98.251 for the 7-year notes, and 93.751 for the bonds will not be accepted. Noncompetitive bidders
will be required to pay the average price of accepted competitive tenders; the price will be 100.000 or less.




(Over)

Fractions may not be used in tenders. The notation “TENDER FOR TREASURY NOTES (Series F-1978 or B-1982)”
or “TENDER FOR TREASURY BONDS” should be printed at the bottom of envelopes in which tenders are submitted.
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 $500,000 or less for
each issue will be accepted in full at the average price of accepted competitive tenders.
Commercial banks, which for this purpose are defined as banks accepting demand deposits, and dealers who make
primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with
respect to Government securities and borrowings thereon, may submit tenders for the 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 commercial and other banks for their own account, Federally-insured
savings and loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and
other public funds, international organizations in which the United States holds membership, foreign central banks and
foreign States, dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank
of New York their positions with respect to Government securities and borrowings thereon, Federal Reserve Banks, and
Government accounts. Tenders from others must be accompanied by payment of 5 percent of the face amount of securities
applied for. However, bidders who submit checks in payment on tenders submitted directly to a Federal Reserve Bank or
the Treasury may find it necessary to submit full payment for the securities with their tenders in order to meet the time
limits pertaining to checks as hereinafter set forth. Allotment notices will not be sent to bidders who submit noncompetitive
tenders.
Payment for accepted tenders must be completed on or before Friday, August 15, 1975, at the Federal Reserve Bank or
Branch or at the Bureau of the Public Debt. Payment must be in cash, 5-7/8% Treasury Notes of Series C-1975, which will
be accepted at par, in other funds immediately available to the Treasury by August 15, or by check drawn to the order of
the Federal Reserve Bank to which the tender is submitted, or the United States Treasury if the tender is submitted to it,
which must be received at such Bank or at the Treasury no later than: (1) Tuesday, August 12, 1975, if the check is drawn
on a bank in the Federal Reserve District of the Bank to which the check is submitted, or the Fifth Federal Reserve District
in case of the Treasury, or (2) Friday, August 8 , 1975, if the check is drawn on a bank in another district. Checks received
after the dates set forth in the preceding sentence will not be accepted unless they are payable at a Federal Reserve Bank.
Where full payment is not completed on time, the allotment will be canceled and the deposit with the tender up to 5 percent
of the amount of securities allotted will be subject to forfeiture to the United States.
The official offering circulars and tender forms will be mailed to you as soon as possible.




ALFRED HAYES,
President.