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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 7 9 3 3 t August 11, 1976 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated May 20, 1976, Due November 18, 1976 (To Be Issued August 1 9 ,1 9 7 6 ) $3,600,000,000 of 182-Day Bills, Dated August 19,1976, Due February 17, 1977 To A ll Incorporated Banks and T rust Companies, and Others Concerned, in the Second Federal Reserve D istrict: Following is the text of a notice issued by the Treasury Department, released yesterday: The T reasury Department, by this public notice, invites tenders for two series of T reasury bills to the aggregate amount of $6,100 million, or thereabouts, to be issued A ugust 19. 1976, as fol lows : 91-day bills (to m aturity date) in the amount of $2,500 million, or thereabouts, representing an additional amount of bills dated May 20, 1976, and to mature November 18, 1976 (C U S IP No. 912793 C20), originally issued in the amount of $3,503 million, the additional and original bills to be freely interchangeable. 182-day bills for $3,600 million, or thereabouts, to be dated A ugust 19, 1976, and to mature Februarv 17, 1977 (C U S IP No. 912793 E 69). The bills will be issued for cash and in exchange for Treasury bills m aturing A ugust 19, 1976, outstanding in the amount of $6, ] 06 million, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international nonetary authorities, presently hold $2,801 million. These accounts nay exchange bills they hold for the bills now being offered at the iverage prices of accepted tenders. The bills of both series will be issued on a discount basis under :ompetitive and noncompetitive bidding as hereinafter provided, and it 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) uul 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., E astern D aylight laving time, Monday, A ugust 16, 1976. Tenders will not be received t the T reasury Departm ent, W ashington. E ach tender must be >r a minimum of $10,000. Tenders over $10,000 must be in mltiples of $5,000. In the case of competitive tenders the price ffered must be expressed on the basis of 100, with not more than iree decimals, e.g., 99.925. Fractions may not be used. It is urged lat tenders be made on the printed forms and forw arded in the >ecial envelopes which will be supplied by Federal Reserve Banks r Branches on application therefor. Banking institutions and dealers who make prim ary m arkets . Government securities and report daily to the Federal Reserve auk of New Y ork their positions with respect to Government ■curities and borrowings thereon may submit tenders for account customers, provided the names of the customers are set forth in such tenders. O thers will not be perm itted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and tru st 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 reasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trusf 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 T reasury 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 reasury 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 August 19, 1976, in cash or other immedi ately available funds or in a like face amount of T reasury bills m aturing A ugust 19, 1976. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be made for differences between the par value of m aturing 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 T reasury 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, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redemption at m aturity during the taxable year for which the return is made. 1 reasury Departm ent C ircular No. 418 (cu rren t revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies of the circular may be obtained trom any Federal Reserve Bank or Branch. This ,Ballk will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday August 16 )7(y, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective ries are enclosed. Please use the appropriate forms to submit tenders and return them in the enclosed envelope marked render for treasury Bills, lenders not requiring a deposit may he submitted by telegraph, subject to written conmation, no tenders may be submitted by telephone. / ayvnent for Treasury lulls cannot he wads by credit through ll r Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in itunng l reasury lulls. Results of the last weekly offering of Treasury lulls (92-day bills to be issued August 12. 1976, representing an ditional amount of bdls dated May la. 1976, maturing November 12, 1976; and 182-day bills dated August 12, 76, maturing February 10, 19// ) are shown on the reverse side of this circular. P a u l A . V olcker, President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 12, 1976) Range of Accepted Competitive Bids 182 -Day Treasury Bills Maturing February 10 , 1977 92-Day Treasury Bills Maturing November 12 , 1976 Price 98.689 98.675 98.676 High ............................................ Low .............................................. Average ...................................... Discount Rate 5.130% 5.185% 5.181% Discount Investment Rate1 Price 97.272a 97.250 97.259 5.27% 5.33% 5.32% Investment Rate 5.396% 5.440% 5.422% Ratei 5.62% 5.67% 5.65% 1 Equivalent coupon-issue yield, a Excepting one tender of $1,500,000. (10 percent of the amount of 182-day bills bid for at the low price was accepted.) (80 percent of the amount of 92-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 92-Day Treasury Bills Maturing November 12 , 1976 Boston .......................... ........... New York..................... ........... Philadelphia ................. ........... Cleveland ..................... ........... Richmond.................... ........... Atlanta ....................... ........... Chicago ............... -...... St Louis .................. . Minneapolis ............... Kansas City ................ Dallas ........ San Francisco.............. $ 42,855,000 4,329,420,000 15,900,000 28,275,000 14,145,000 26,175,000 309,340,000 47,040,000 35,695,000 47,330,000 26,000,000 286,665,000 $ .... $5,208,840,000 $2,700,920,000b T otals ............... 21,255,000 2,194,630,000 14,615,000 26,680,000 14,145,000 24,900,000 253,340,000 20,775,000 8,695,000 30,920,000 12,000,000 78,965,000 b Includes $308,620,000 noncompetitive tenders from the public, c Includes $144,670,000 noncompetitive tenders from the public. Accepted Received Accepted Received District 182 -Day Treasury Bills Maturing February 10 , 1977 $ 37,265,000 5,084,325,000 36,645,000 135,915,000 18,215,000 10,605,000 412,130,000 34,020,000 49,490,000 30,610,000 22,170,000 227,625,000 $6,099,015,000 $ 22,765,000 3.172,625,000 22,145,000 75,915,000 18,215,000 10,605,000 250,630,000 23,020,000 46,790,000 27,610,000 17,170,000 113,325,000 $3,800,815,000'-' (Closing date for receipt of this tender is Monday, August 16, 1976) TENDER EOR 91-DAY TREASURY BILLS Additional Amount, Series Dated May 20, 1976, Maturing November 18, 1976 (To Be Issued August 19, 1976) To F ederal R eserve B a n k of N ew Y ork , Dated at Fiscal Agent of the United States , 19— Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: Do not fill in both Competitive and Noncompetitive tenders on one form COMPETITIVE TENDER $....................................................... (maturity value) or any lesser amount that may be awarded. Price : ........ ........................................per 100. (Price must be expressed w ith not more than three NONCOMPETITIVE TENDER $....................................................... (maturity value) (Not to exceed $500,000 for one bidder through all sources) at the average price of accepted competitive bids. decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: P ie ce s D e n o m in a tio n $ Maturity valu e □ 1. D e liv e r o v e r th e c o u n te r to th e u n d e rsig n e d 10,000 □ 2. S h ip to th e u n d e rsig n e d □ 3. H o ld in sa fe k e e p in g ( f o r m e m b e r b a n k o n ly ) in — P a y m e n t w ill be m ad e a s f o l lo w s : □ B y c h a rg e to o u r re s e rv e a cc o u n t □ B y c a s h o r c h ec k in 50,000 □ In v e s tm e n t A c c o u n t 100,000 □ f~l G e n e ra l A c c o u n t 500,000 □ immediately available funds on d e liv e ry (Payment cannot be made through Treasury Tax and Loan Account) 15,000 5. S p e c ia l i n s t r u c t i o n s : T ru s t A ccount □ 4. A llo tm e n t t r a n s f e r (se e lis t a tta c h e d ) (No changes in delivery instructions 1,000,000 T o ta ls will be accepted) The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (Name of lubscriber—please print or type) In sert this ten d er in special envelope marked “ Tender for Treasury Bills” (Address—incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) ( B a n k in g in s titu tio n s s u b m ittin g te n d e rs fo r c u s to m e r a c c o u n t m u s t lis t c u s to m e rs ’ n a m e s on lin es b e lo w o r on a n a tta c h e d r i d e r ) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. No tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (m aturity value). 2. Only banking institutions, and dealers who make prim ary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrow ings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the same price and may consolidate noncompetitive, tenders, provided a list is attached showing the name of each bidder and the am ount bid for his account. O thers will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the c o rp o ra tio n authorized to make the tender, and the signing of the tender by an officer of the c o rp o ra tio n w ill be c o n s tru e d a s a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed b y a m em b e r of the firm, who should sig n in the form “ ...................................................................................................... _ a c o p a rtn e rs h ip , by ................................................................................................ , a member of the firm.” 4. 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 lace amount of i reasury bills applied for, unless the tenders are accompanied bv an express guaranty of payment by an incorporated bank or trust company. AH checks must be drawn to the order of the Federal Reserve Bank of N e w Y ork; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the T r e a s u r y is material, the tender may be disregarded. ' Rev. 3/7 6 [ 34 ] r (Closing dale for receipt of this tender is Monday, August 16, 1976) TENDER FOR 182-DAY TREASURY BILLS U1US t o o e - ------ --------------- ------- U>. | > t u w .iia c u < u ia m e ... . . , XT . „ x __ — « — 7 —orates securities (Department Circular No. 300) and the Regulations governing Treasury Bills (Department Circular N o. 418). The transaction will not be completed unless all required data is furnished. Dated August 19, 1976 Maturing February 17. 1977 To F e d e r a l R eserv e B a n k o f N e w Y o r k , Fiscal Agent of the United States Dated at „ 19— Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions of the public notice issued by the Treasury Department inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: D o not fill in both C om p etitive and N o n co m p etitive ten d ers on one fo rm COMPETITIVE TENDER NONCOMPETITIVE TENDER $........................................................(maturity value) $........................................................ (maturity value) or any lesser amount that may be awarded. ( N o t to e x c e e d $500,000 fo r one b id d e r th rou gh a ll so u rc es) Price:.......................... ................ ...... per 100. at the average price of accepted competitive bids. ( P r ic e m ust be e x p re ss e d w ith not m o re than three d ecim a l p la ces, fo r ex a m p le , 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination $ Maturity value □ 1. Deliver over the counter to the Payment will be made as follows: □ By charge to our reserve account □ By cash o r check in immediately a v a ila b le fu n d s on delivery undersigned 10,000 □ 2. Ship to the undersigned 15,000 □ 3. Hold in safekeeping (for mem ber bank only) in— 50,000 (P a y m e n t cannot be m ade throu gh T re a s u ry T a x an d L o a n A cco u n t ) □ Investment Account 100,000 □ 5. Special instructions: FH G e n e ra l A c c o u n t 500,000 □ Trust Account 1,000,000 □ 4. Allotment transfer (see list attached) (N o Totals changes in delivery instructions will be accepted) The undersigned (member bank) hereby certifies that the Treasury bills which you are hereby instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned. (Name of subscriber—please print or type) Insert this tender in special envelope marked “Tender for Treasury Bills’’ (Address—inci. City said Suite) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity value). 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the sam e p ric e and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “....................................................................................................... , a copartnership, by ................................................................................................., a member of the firm.” 4. 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. All checks must be drawn to the order of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. Rev. 3/7 6
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