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FED ER A L R ESER VE BANK O F N E W YORK Fiscal Agent of the United States [ September 16, 1975 Circular No. 7 7 0 9 1 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 92-Day Bills, Additional Amount, Series Dated June 26, 1975, Due December 26, 1975 (To Be Issued September 25, 1975) $2,800,000,000 of 182-Day Bills, Dated September 25, 1975, Due March 25, 1976 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $5,500,000,000, or thereabouts, to be issued September 25, 1975, as follow s: 92-day bills (to maturity date) in the amount of $2,700,000,000, or thereabouts, representing an additional amount of bills dated June 26, 1975, and to mature December 26, 1975 (C U S IP No. 912793 Y D 2 ), origi nally issued in the amount of $2,301,675,000, the addi tional and original bills to be freely interchangeable. 182-day bills, for $2,800,000,000, or thereabouts, to be dated September 25, 1975, and to mature March 25, 1976 (C U S IP No. 912793 Y Z 3). The bills will be issued for cash and in exchange for Treasury bills maturing September 25, 1975, outstanding in the amount of $5,502,295,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $1,818,270,000. 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 (maturity 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 Daylight Saving time, Monday, September 22, 1975. Tenders will not be re ceived at the Treasury Department, Washington. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in mul 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 New 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, following 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 decimals) of accepted competi tive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on September 25, 1975, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing September 25, 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 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 No. 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, September 22, 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 September 18, 1975, representing an additional amount of bills dated June 19, 1975, maturing December 18, 1975 ; and 182-day bills dated September 18, 1975, m aturing March 18, 1976) are shown on the reverse side of this circular. P a u l A. V o l c k e r , [39 ] President. Please note that the Treasury bills maturing December 26, 1975 will be 92-day bills. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 18, 1975) Range of Accepted Competitive Bids 9 i-Day Treasury Bills Maturing December 18 , 1975 Price High .............................. .................. .................. .................. 98.387a 98.367 98.371 Discount Rate 182 -Day Treasury Bills Maturing March 18 , 1976 Investment Rate 1 6.381% 6.460% 6.444% 6.59% 6 .6 8 % 6 .6 6 % Price Discount Rate Investment Rate1 96.552 96.498 96.511 6.820% 6.927% 6.901% 7.18% 7.30% 7.27% 1 Equivalent coupon issue yield, a Excepting one tender of $4,155,000. (57 percent of the amount of 91-day bills bid for at the low price was accepted.) (73 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 December 18 , 1975 Received District Boston .......................... ............. New York .................... ............. Philadelphia ............................... Cleveland ...................... ............. Richmond .................... ............. A tlanta .......................... ............. Chicago ........................ ............. St. Louis ...................... ............. Minneapolis .................. ............. Kansas City .................. ............. Dallas .......................... ............. San Francisco .............. ............. T o tal ...................... ........ $ 43,455,000 3,894,185,000 56,570,000 161,365,000 70,585,000 60,755,000 284,170,000 49,550,000 16,715,000 63,865,000 87,610,000 244,345,000 $5,033,170,000 Accepted $ 29,910,000 2,113,475,000 28,140,000 36,365,000 63,155,000 56,755,000 113,025,000 31,850,000 11,855,000 61,535,000 26,030,000 129,145,000 $2,701,240,000b 1) Includes $405,905,000 noncom petitive tenders from the public, c Includes $197,115,000 noncom petitive tenders from the public. 182 -Day Treasury Bills Maturing March 18 , 1976 Received $ 25,255,000 3,561,085,000 9,070,000 135,030,000 39,215,000 43,750,000 283,940,000 33,780,000 12,840,000 30,655,000 27,070,000 247,345,000 $4,449,035,000 Accepted $ 15,255,000 2,364,765,000 9,070,000 34,330,000 39,215,000 40,750,000 127,940,000 26,510,000 12,840,000 26,155,000 24,800,000 178,805,000 $2,900,435,000c
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