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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
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C ircular N o. 7 7 4 9
N ovem b er 12, 1975

1

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OFFERING OF TWO SERIES OF TREASURY BILLS

$3,200,000,000 of 91-Day Bills, Additional Amount, Series Dated August 21, 1975, Due February 19, 1976
(To Be Delivered November 20, 1975)
$3,400,000,000 of 182-Day Bills, Dated November 15, 1975, Due May 20, 1976
(To Be Delivered November 20, 1975)
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued yesterday by the Treasury Departm ent:
The T reasury Department, by this public notice, invites tenders
ior two series of T reasu ry bills to the ag gregate amount of
$6,600,000,000, or thereabouts, to be delivered Novem ber 20, 1975, as
fo llo w s:
91-day bills (to m aturity date) in the amount of
$3,200,000,000, or thereabouts, representing an additional
amount of bills dated A u gust 21, 1975, and to m ature
Feb ruary 19, 1976 ( C U S I P N o. 912793 Y U 4 ), origi­
nally issued in the amount of $3,201,985,000, the addi­
tional and original bills to be freely interchangeable.
182-day bills (to m aturity date) in the amount of
$3,400,000,000, or thereabouts, dated N ovem ber 15, 1975,
and to m ature M ay 20, 1976 ( C U S I P No. 912793 Z H 2 ).
The bills will be delivered for cash payment and in exchange
for T reasu ry bills m aturing Novem ber 20, 1975, outstanding in the
amount of $5,903,955,000, of which Government accounts and F e d ­
eral R eserve Banks, for themselves and as agents of foreign and
international m onetary authorities, presently hold $3,748,360,000.
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,
l'hey 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.
le n d e rs will be received at Federal R eserve B anks and
Branches up to the closing hour, one-thirty p.m., E astern Stan d­
ard time, Monday, N ovem ber 17, 1975. Tenders will not be received
at the T reasury Departm ent, W ashington. E ach tender must be
for a minimum of $10,000. Tenders over $10,000 m ust 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 form s and forw arded in the special
envelopes which will be supplied by Federal R eserve B anks or
Branches on application therefor.
Banking institutions and dealers who make prim ary m arkets in
Government securities and report daily to the Federal Reserve
Bank of New Y ork their positions with respect to Government
securities and borrow ings thereon may submit tenders for account

of custom ers, provided the names of the custom ers 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 am ount of
T reasury 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 B an ks and Branches, follow ing which public
announcement will be made by the T reasury Departm ent 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 T reasu ry 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. Sub ject 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 Novem ber 20, 1975, in cash or other im­
mediately available funds or in a like face amount of T reasury
bills m aturing Novem ber 20, 1975. Cash and exchange tenders will
receive equal treatment. Cash adjustm ents will be made for differ­
ences between the par value of m aturing bills accepted in exchange
and the issue price of the new bills.
U nder Sections 4 5 4 (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. A ccordingly, the owner of T reasury
bills (other than life insurance com panies) issued hereunder must
include in his income ta x 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 m aturity during the taxable year
for which the return is made.
T reasu ry Departm ent C ircular N o. 418 (current revision) and
this notice prescribe the term s of the T reasu ry bills and govern
the conditions of their issue. Copies of the circular may be obtained
from any Federal R eserve B ank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time. Monday, November 17,
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 (92-day bills to be issued November 13, 1975, representing an
additional amount of bills dated August 14, 1975, maturing February 13, 1976; and 182-day bills dated November 13.
1975, maturing May 13, 1976) are shown on the reverse side of this circular.
P a u l A. V o l c k e r ,

[47]

President.

Note: The enclosed tender form s were printed before notification was received of the issue and delivery dates
indicated above. Nevertheless, the enclosed form s should be used to submit tenders.



( over )

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED NOVEMBER 13, 1975)

Range of Accepted Competitive Bids
92-Day Treasury Bills
Maturing February 13, 1976

H igh

................ -..........................

Low ............................................
Average ......................................

P rice

D iscount
R ate

98.668
98.643
98.651

5.212%
5.310%
5.279%

Investment
R a te 1

5.37%
5.47%
5.44%

182-Day Treasury Bills
Maturing May 13, 1976
Price

D iscount
R ate

Investment
R a te 1

97.264
97.213
97.228

5.412%
5.513%
5.483%

5.66%
5.77%
5.73%

1 Equivalent coupon issue yield.

(12 percent of the amount of 92-day bills
bid for at the low price was accepted.)

(50 percent of the amount of 182-day bills
bid for at the lowr price was accepted.)

Total Tenders Received and Accepted (By Federal Reserve District)
92-Day Treasury Bills
Maturing February 13, 1976
D istrict

Received

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

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

$

38,525,000
4,375,205,000
32,430,000
77,650,000
27,860,000
53,900,000
325,705,000
55,860,000
38,275,000
48,630,000
45,980,000
199,525,000

$5,319,545,000

Accepted

$

Accepted

Received

37,525,000
2,511,845,000
32,430,000
66,890,000
25,860,000
47,900,000
166,005,000
39,050,000
27,275,000
46,630,000
39,700,000
159,125,000

$ 44,040,000
4,335,905,000
38,760,000
120,160,000
23,375,000
26,155,000
286,095,000
35,525,000
50,250,000
24,210,000
15,520,000
268,025,000

$

$3,200,235,000a

$5,268,020,000

$3,300,010,000b

a Includes $501,895,000 noncompetitive tenders from the public.
b Includes $194,735,000 noncompetitive tenders from the public.




182-Day Treasury Bills
Maturing May 13, 1976

41,040,000
2,745,905,000
13,760,000
100,160,000
16,375,000
21,655,000
108,085,000
23,525,000
45,250,000
21,210,000
15,020,000
148,025,000