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FED ER A L R ESER VE BANK O F N EW YORK Fiscal Agent of the United States [ Circular No. 7760' December 2, 1975 , OFFERING OF TWO SERIES OF TREASURY BILLS $2,900,000,000 of 91-Day Bills, Additional Amount, Series Dated September 11, 1975, Due March 11, 1976 (To Be Issued December 11, 1975) $3,300,000,000 of 182-Day Bills, Dated December 11, 1975, Due June 10, 1976 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 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 $6,200,000,000, or thereabouts, to be issued December 11, 1975, as follows: 91-day bills (to maturity date) in the amount of $2,900,000,000, or thereabouts, representing an additional amount of bills dated September 11, 1975, and to mature March 11, 1976 (CUSIP No. 912793 YX8), origi nally issued in the amount of $3,202,095,000, the addi tional and original bills to be freely interchangeable. 182-day bills for $3,300,000,000, or thereabouts, to be dated December 11, 1975, and to mature June 10, 1976 (CUSIP No. 912793 ZL3). The bills will be issued for cash and in exchange for Treasury bills maturing December 11, 1975, outstanding in the amount of $5,494,825,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,583,300,000. 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 Stand ard time, Monday, December 8, 1975. Tenders will not be received 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 company. 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 December 11, 1975, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing December 11, 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 Standard time, Monday, December 8 , 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 issued December 4, 1975, representing an additional amount of bills dated September 4, 1975, maturing March 4, 1976; and 182-day bills dated December 4, 1975, maturing June 3, 1976) are shown on the reverse side of this circular. r , ^ P a u l A . V o lcker, President. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED DECEMBER 4, 1975) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing March 4, 1976 High ............................................ Low ............................................ Average ...................................... Price Discount Rate 98.647 98.593 98.597 5.353% 5.566% 5.550% 182-Day Treasury Bills Maturing June 3 , 1976 Investment Rate1 5.52% 5.74% 5.72% Price Discount Rate Investment Rate 1 96.987 96.953 96.969 5.960% 6.027% 5.995% 6.25% 6.32% 6.29% 1 Equivalent coupon issue yield. ( 6 6 percent of the amount of 91-day bills (92 percent of the amount of 182-day bills bid for at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 182-Day . Treasury Bills Maturing June 3 , 1976 91 -Day Treasury Bills Maturing March 4, 1976 District Boston ........................................ New York ................... ............. Philadelphia ................. ............. Cleveland ...................... ............. Richmond .................... ............. Atlanta ........................................ Chicago ...................................... St. Louis ................................... Minneapolis .................. ............. Kansas City .................. ............. Dallas ........................... ............. San Francisco .............. ............ T otal ......................... ............ $ 49,070,000 4,039,050,000 41,210,000 133,670,000 43,445,000 41,455,000 329,455,000 59,035,000 31,865,000 46,970,000 42,200,000 489,955,000 $5,347,380,000 $ 38,070,000 2,298,630,000 40,670,000 73,670,000 39,290,000 34,105,000 142,620,000 38,035,000 19,185,000 41,970,000 2 2 ,2 0 0 ,0 0 0 412,895,000 $3,201,340,000* a Includes $485,755,000 noncompetitive tenders from the public, b Includes $182,100,000 noncompetitive tenders from the public. Received Accepted Received $ 22,550,000 4,176,610,000 68,095,000 118,025,000 78,560,000 20,225,000 289,660,000 44,365,000 59,700,000 26,350,000 29,965,000 267,965,000 $5,202,070,000 Accepted $ 19,220,000 2,670,970,000 51,695,000 88,025,000 62,540,000 18,725,000 205,660,000 21,365,000 52,700,000 21,350,000 24,965,000 163,085,000 $3,400,300,000b
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