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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r L C ircular N o. 7 7 4 9 N ovem b er 12, 1975 1 J 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