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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States r L C ircular N o. 7753"1 N ovem ber 18, 197S J OFFERING OF TWO SERIES OF TREASURY BILLS S3 200,000,000 of 90-Day Bills, Additional Amount, Series Dated August 28, 1975, Due February 26, 1976 (To Be Issued November 28, 1975) $3,400,000,000 of 181-Day Bills, Dated November 28, 1975, Due May 27, 1976 T o A ll In corporated B a n k s and T ru st Companies, and Others Concerned, in the Second F ed eral R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released at 4 p.m. today: T h e T re asu ry Departm ent, by this public notice, invites tenders for two series of T reasu ry bills to the ag gregate amount of $6,600,000,000, or thereabouts, to be issued N ovem ber 28, 1975, as fo llo w s: 90-day bills (to m aturity date) in the amount of $3,200,000,000, or thereabouts, representing an additional am ount of bills dated A ugust 28, 1975, and to mature F eb ru ary 26, 1976 ( C U S I P N o. 912793 Y V 2 ), orig i nally issued in the amount of $3,201,720,000, the addi tional and original bills to be freely interchangeable. 181-day bills for $3,400,000,000, or thereabouts, to be dated N ovem ber 28, 1975, and to m ature M ay 27 1976 ( C U S I P N o. 912793 Z J 8 ) . V T he bills w ill be issued for cash and in exchange for T reasury bills m aturing N ovem ber 28, 1975, outstanding in the amount of $5,905,675,000, of which Government accounts and Federal R eserve B an ks, for themselves and as agents of foreign and international m onetary authorities, presently hold $2,539,095,000. These accounts m ay exchange bills they hold for the bills now being offered at the av erage 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 m aturity 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. T enders will be received at Federal Reserve B an ks and B ran ch es up to the closing hour, one-thirty p.m., E astern Stan d ard time, M onday, N ovem ber 24, 1975. Tenders will not be received at the T re asu ry D epartm ent, W ashington. E ach tender m ust 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 m ust be expressed on the basis of 100, with not more than three decim als, 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 an ks or B ranches on application therefor. Bankin g institutions and dealers who make prim ary m arkets in Government securities and report daily to the Federal Reserve B ank of N ew Y ork their positions with respect to Government securities and borrow ings thereon may submit tenders for account of customers, 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 m ust be accompanied by payment of 2 percent of the face amount of T reasu ry bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 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 reasu ry D epartm ent of the amount and price range of accepted bids. Only those subm itting 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 m ust be made or completed a t the Federal R eserve Bank on N ovem ber 28, 1975, in cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing N ovem ber 28, 1975. C ash 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 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 m aturity during the taxable year for which the return is made. T reasu ry Departm ent Circular No. 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 24, 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 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 delivered November 20, 1975, representing an additional amount of bills dated August 21, 1975, maturing February 19, 1976; and 182-day bills to be delivered November 20, 1975, dated November 15, 1975, maturing May 20, 1976) are shown on the reverse side of this circular. P a u l A. V o l c k e r , [48] President. P lease note that the current offerin g is fo r 90-day and 181-day T reasu ry bills. (o v e r ) ; RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE DELIVERED NOVEMBER 20, 1975) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing February 19,1976 Price High ................................................. Low ................................................. Average .......................................... 98.625a 98.613 98.617 Discount Rate 182-Day Treasury Bills Maturing May 20, 1976 Investment Rat e^ 5.440% 5.487% 5.471% Price 5.61% 5.66% 5.64% 97.078b 97.059 97.070 1 Equivalent coupon issue yield. a Excepting one tender of $100,000. Discount Rate Investment Rat el 5.780% 5.817% 5.796% 6.05% 6.09% 6.07% b Excepting three tenders totaling $650,000. (20 percent of the amount of 91-day bills bid for at the low price was accepted.) (39 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) 91 -Day Treasury Bills Maturing February 19, 1976 District Received Boston .......................... ............. New York ................... ............. Philadelphia ................. ............. Cleveland ...................... ............. Richmond .................... ............. Atlanta .......................... ............. Chicago ........................ ............. St. Louis ...................... ............. Minneapolis .................. ............. Kansas City .................. ............. Dallas ........................... ............. San Francisco .............. ............. T otal ......................... ............ $ 29,395,000 4,534,575,000 58,610,000 101,885,000 25,300,000 36,740,000 315,135,000 53,825,000 36,020,000 60,370,000 45,435,000 369,560,000 $5,666,850,000 Received Accepted $ 28,595,000 2,597,795,000 58,610,000 46,885,000 24,300,000 35,260,000 137,335,000 33,175,000 24,620,000 58,030,000 27,435,000 128,445,000 $3,200,485,000c c Includes $466,995,000 noncompetitive tenders from the public, d Includes $152,250,000 noncompetitive tenders from the public. 182-Day Treasury Bills Maturing May 20, 1976 $ 27,575,000 4,629,585,000 6,370,000 78,885,000 41,430,000 11,005,000 279,470,000 36,450,000 35,370,000 37,320,000 17,800,000 289,815,000 $5,491,075,000 Accepted $ 6,575,000 3,100,585,000 6,370,000 13,780,000 10,830,000 9,005,000 82,905,000 15,450,000 8,370,000 23,350,000 7,800,000 115,005,000 $3,400,025,000d