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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r C ircular No. 7 7 8 9 1 L J a n u a ry 6, 1976 J OFFERING OF TWO SERIES OF TREASURY BILLS $3,000,000,000 of 91-Day Bills, Additional Amount, Series Dated October 16, 1975, Due April 15, 1976 (To Be Issued January 15,1976) $3,400,000,000 of 182-Day Bills, Dated January 15, 1976, Due July 15, 1976 /o A// /wcorj'orafcd and 7T:<A Co?a^am'cy, and Concerned, in f/:e .Second Federal Ce^crTe DfArfcU Foliowing 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 lor two series of Treasury bills to the aggregate amount of $6,400,000,000. or thereabouts, to be issued January 15, 1976, as follows: 91-day bills (to maturity date) in the amount of $3,000,000,000, or thereabouts, representing an additional amount of bills dated October 16, 1975, and to mature April 15. 1976 (C U SIP No. 912793 ZC3), originally issued in the amount of $3,103,020,000, the additional and original bills to be freely interchangeable. 182-day bills for $3,400,000,000, or thereabouts, to be dated January 15. 1976, and to mature July 15, 1976 (C U SIP No. 912793 ZY5). The bills will be issued for cash and in exchange for Treasury nilD maturing January 15. 1976, outstanding in the amount of $5,904,820,000, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,290,380,000. 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, January 12, 1976. 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 January 15, 1976, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing January 15, 1976. 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 Hank will receive tenders tor both series up to 1 :30 p.m., Eastern Standard time, Monday, January 12, 1976, at the Securities Department of its Head Ofhce 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 Jor Preayary &7P rawnof wa7e &y crc77 f/!roMy/r /Ac 7Tea.no* v 7'a.r a a 7 Loan HrcoaaC TeP/e/aenf ma-sd &e waafc in cav/; or of/mr onnicdiafc/y avai/aMc faacP or in ;nadariw<y Prcayary 777s*. Results of the last weekly offering of Treasury bills (91-day bills to be issued January 8, 1976, representing an additional amount of bills dated October 9. 1975, maturing April 8, 1976; and 182-clay bills dated January 8, 1976. maturing [uly 8, 1976) are shown on the reverse side of this circular. PAUL A . VOLCKER, ( OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 8, 1976) Range of Accepted Competitive Bids p z -D a y T re a ^ a ry Bf/As* A fa ^ rm p 6*, zpyd H ig h L ow ...................................................... A v erag e ............................................... Prnrc 98.698 98.675 98.679 DfycoMM? Rafc 5.151% 5.242% 5.226% z& ?-Day T rc a ^ a ry TfaAanMp 7 td y 6*, zpyd PWcc 97.229 97.203 97.209 Pofei 5.3 1 % 5.40% 5 .38% DArcoMMt Paff 5.481% 5.533% 5.521% 5.73% 5.79% 5.77% i Equivalent coupon issue yield. (82 p erc en t of the am o u n t of 91-day bills bid for at the low p rice w as ac cep ted .) (35 p erc en t of th e a m o u n t of 182-day bills bid fo r a t th e low p rice w as accep ted .) Total Tenders Received and Accepted (By Federal Reserve District) p r-D a y T r c a ja r y Bi7Ay M aAarm p & zpyd z& ?-Day T r c a ja r y Bf/Ar AfaAaWMp /t d y z p /d Picric? Boston ........................ ............ New York .................. ............ Philadelphia ................ ............ Cleveland .................... ............ Richmond ............................... Atlanta ........................ ............ Chicago ...................... ............ St. Louis .................... ............ Minneapolis ............................. Kansas City ................. ............ Dallas ......................... ............ San Francisco ............. ............ TOTAL ................. ........... $ 29,920,000 3.761,420,000 25,830,000 65,260,000 33,590,000 47,110,000 692,475,000 65,365,000 28,840,000 43,980,000 79,410,000 209,825,000 $5,083,025,000 $ 29,920,000 1,976,800,000 25,830,000 44,360,000 25,455,000 44,110,000 588,635,000 43,865,000 28,840,000 41,875,000 55,410,000 98,165,000 $3,003,265,000=' a Includes $482,250,000 noncompetitive tenders from the public. ^ Includes $197,795,000 noncompetitive tenders from the public. $ 18,180,000 5.509,835,000 48,520,000 154,850,000 58,590,000 27,955,000 300,070,000 41,455,000 43,095,000 30,770,000 37,750,000 267,110,000 $6,538,180,000 $ 13,180,000 2,944,585,000 19,520,000 89,850,000 32,590,000 24,455,000 133,820,000 16,440,000 31,095,000 27,110,000 27,750,000 139,610,000 $3,500,005,000^
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