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FE D E R A L R ESER VE BAN K O F N EW YORK Fiscal Agent of the United States Circular No. 7 7 5 7 T J [ November 25, 1975 OFFERING OF TWO SERIES OF TREASURY BILLS $3,200,000,000 of 91-Day Bills, Additional Amount, Series Dated September 4, 1975, Due March 4, 1976 (To Be Issued December 4, 1975) $3,400,000,000 of 182-Day Bills, Dated December 4, 1975, Due June 3, 1976 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F ollow in g is the text of a notice issued by the T reasury Departm ent, released at 4 p.m. today: T h e T reasu ry Departm ent, by this public notice, invites tenders for two series of T re asu ry bills to the aggregate amount of $6,600,000,000, or thereabouts, to be issued December 4, 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 Septem ber 4, 1975, and to mature M arch 4, 1976 ( C U S I P No. 912793 Y W 0 ), origi nally issued in the amount of $3,203,280,000, the addi tional and original bills to be freely interchangeable. 182-day bills for $3,400,000,000, or thereabouts, to be dated December 4, 1975, and to m ature Ju n e 3, 1976 ( C U S I P No. 912793 Z K 5 ). The bills will be issued for cash and in exchange for T reasu ry bills m aturing December 4, 1975, outstanding in the am ount of $5,805,955,000, of which Government accounts and Federal R eserve B anks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,222,385,000. 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 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 R eserve B anks and Branches up to the closing hour, one-thirty p.m., E astern Stan d ard time, Monday, Decem ber 1, 1975. Tenders will not be received at the T reasu ry Departm ent, W ashington. E ach tender m ust 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 m ust be expressed on the b asis of 100, with not more than three decimals, e.g., 99.925. Fraction s 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 Reserve Ban ks or Branches on application therefor. B anking 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 custom ers, provided the names of the custom ers are set forth in such tenders. O thers 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 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 anks and Branches, follow ing which public announcement will be made by the T re asu ry D epartm 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 R eserve Bank on December 4, 1975, in cash or other im m ediately available funds or in a like face amount of T reasury bills m aturing December 4, 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. Accordingly, 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 D epartm 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, December 1 , 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 (90-day bills to be issued November 28, 1975, representing an additional amount of bills dated August 28, 1975, maturing February 26, 1976; and 181-day bills dated November 28, 1975, maturing May 27, 1976) are shown on the reverse side of this circular. P a u l A . V olcker , l4 9 J President. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 28, 1975) Range of Accepted Competitive Bids 90-Day Treasury Bills Maturing February 26, 1976 High .............................. .................. Low .............................. .................. Average .......................................... Price Discount Rate 98.625 98.614 98.620 5.500% 5.544% 5.520% 181 -Day Treasury Bills Maturing May 27, 1976 Investment Rate1 5.67% 5.72% 5.69% Price Discount Rate Investment Ratel 97.034 97.012 97.017 5.899% 5.943% 5.933% 6.18% 6.23% 6 .2 2 % 1 Equivalent coupon issue yield. (20 percent of the amount of 90-day bills bid for at the low price was accepted.) (98 percent of the amount of 181-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 90-Day Treasury Bills Maturing February 26, 1976 District T otal ........................................... $ 52.120.000 4,550,165,000 53.090.000 48.720.000 51.050.000 43.410.000 578,950,000 57.190.000 27.230.000 44.135.000 46.095.000 817,000,000 $ 31,420,000 2,196,380,000 32.390.000 38.285.000 31.540.000 41.310.000 151.650.000 43.390.000 9,830,000 30.465.000 21.395.000 573,000,000 $6,369,155,000 $3,201,055,000a a Includes $485,670,000 noncompetitive tenders from the public. *>Includes $170,495,000 noncompetitive tenders from the public. Accepted Received Accepted Received Boston ........................................ New York ... Philadelphia . Cleveland ..... Richmond .... Atlanta ......... Chicago ....... St. Louis ..... Minneapolis .. Kansas City .. Dallas .......... San Francisco 181 -Day Treasury Bills Maturing May 27, 1976 $ 24,620,000 4,791,080,000 62,920,000 156,520,000 83,530,000 21,715,000 299,955,000 47,595,000 68,850,000 32,320,000 24,815,000 530,125,000 $6,144,045,000 $ 10,620,000 2,794,380,000 43,820,000 89,120,000 25,730,000 17,315,000 65,455,000 29,595,000 34,850,000 24,895,000 7,815,000 257,625,000 $3,401,220,000b
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