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FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent of the United States No. 7 9 4 3 "I August 25, 1976 J [ Circular OFFERING OF TWO SERIES OF TREASURY BILLS $2,500,000,000 of 91-Day Bills, Additional Amount, Series Dated June 3, 1976, Due December 2, 1976 (To Be Issued September 2, 1976) $3,600,000,000 of 182-Day Bills, Dated September 2, 1976, Due March 3, 1977 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 yesterday: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $6,100 million, or thereabouts, to be issued September 2, 1976, as follows: 91-day bills (to maturity date) in the amount of $2,500 million, or thereabouts, representing an additional amount of bills dated June 3, 1976, and to mature December 2, 1970 (C U SIP No. 912793 C46). 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 September 2, 1976, and to mature March 3, 1977 (C U SIP No. 912793 E85). The bills will be issued for cash and in exchange for Treasury bills maturing September 2, 1976, outstanding in the amount of $6,092 million, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,506 million. 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 Daylight Saving time, Monday, August 30, 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 multiples of $5,000. In the case of competitive tenders the price offered must lie 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 September 2, 1976, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing September 2, 1976. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences 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 1:3Q p.m., Eastern Daylight Saving time, Monday, August 30, 1976, 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 tinuation;no tenders maybe submitted by telephone. P a y m e n t fo r T re a su ry bills ca n n o t be m a d e by cred it th ro u g h 'he T re a su ry T a x and L o a n A c c o u n t. S e ttle m e n t m u st be m ade in cash or o ther im m e d ia te ly available fu n d s or in m a tu rin g 'T reasury bills. Results of the last weekly offering of Treasury bills (92-day bills to be issued August 26, 1976, representing an idditional amount of bills dated May 27, 1976, maturing November 26, 1976; and 182-day bills dated August 26, 1976, maturing February 24, 1977) 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 26, 1976) Range of Accepted Competitive Bids 92 -Day Treasury Bills Maturing November 26 , 1976 High ........... .... Average ......... Price Discount Rate 98.692a 98.686 98.687 5.118% 5.142% 5.138% 18 2 -Day Treasury Bills Maturing February 24 , 1977 Investment Rate 1 Price 97.288 97.275 97.280 5.26% 5.28% 5.28% Investment Rate 1 Discount Rate 5.364% 5.390% 5.380% 5.59% 5.62% 5.61% 1 Equivalent coupon-issue yield, a Excepting two tenders totaling $710,000. (15 percent of the amount of 182-day bills bid for at the low price was accepted.) (85 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) 18 2 -Day Treasury Bills Maturing February 24 , 1977 92 -Day Treasury Bills Maturing November 26 , 1976 District Boston..... New York.. Philadelphia ... Cleveland .. Richmond .. Atlanta .... Chicago.... St. Louis... Minneapolis .. Kansas City .. Dallas .... San Francisco T o tals . Received Accepted $ 42,020,000 4,453,375,000 22,055,000 29,885,000 27,225,000 39,790,000 277,445,000 44,700,000 41,345,000 32,020,000 42,220,000 327,025,000 $ 20,420,000 2,279,205,000 20,840,000 29,495,000 22,040,000 37,985,000 67,405,000 22,250,000 7,345,000 27,335,000 17,220,000 50,660,000 $5,379,105,000 $2,602,200,000b b includes $362,545,000 noncompetitive tenders from the public, c Includes $176,310,000 noncompetitive tenders from the public. Received $ 49,705,000 5,465,015,000 8,600,000 113,995,000 40,040,000 23,255,000 519,170,000 38,110,000 48,250,000 37,885,000 28,960,000 311,440,000 $6,684,425,000 Accepted $ 9,605,000 3,332,920,000 8,175,000 13,995,000 11,340,000 23,255,000 60,070,000 13,110,000 24,250,000 25,185,000 15,960,000 63,190,000 $3,601,055,000° (Closing date for receipt of this tender is Monday, August 30, 1976) TENDER FOR 91-DAY TREASURY BILLS Additional Amount, Series Dated June 3, 1976, Maturing December 2, 1976 To F ederal R eser ve B a n k of N ew (To Be Issued September 2, 1976) Y ork, Dated a t............................. F iscal A g en t o f the U n ited States 19_ P ursuant to the provisions of T r e a su r y D epartm ent Circular N o . 418 (current rev isio n ) and to the provi sio n s of the public notice issued by the T reasury D epartm ent inviting tenders for the above-described T rea su ry b ills, th e u n d ersig n ed h ereb y o ffers to p u r c h a se su ch T r e a su r y b ills in th e a m o u n t in d ica ted below , and agrees to make paym ent therefor at your Bank on or before the issue date at the price indicated b e lo w : Do not fill in both Competitive and Noncompetitive tenders on one form COMPETITIVE TENDER NONCOMPETITIVE TENDER $ ........................................... ......................... (m aturity value) or any lesser am ount that m ay be awarded. $ .................................................................... (m aturity value) (N ot to exceed $500,000 for one bidder through all sources) P r ic e : ............................................................. per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) at the average price of accepted com petitive bids. Subject to allotm ent, please issue, deliver, and accept paym ent for the bills as indicated below : Pieces Denomination Maturity value □ 1. Deliver over the counter to the P a y m e n t will be m a d e as follows : undersigned $ 10,000 □ 2. Ship to the undersigned 15,000 □ 50,000 □ By charge to our reserve account □ By cash or check in immediately available funds on delivery 3. Hold in safekeeping (for mem ber bank only) in— (Payment cannot be made through Treasury Tax and Loan Account) □ Investment Account 100,000 □ 500,000 □ General Account 5. Special instructions: □ Trust Account 1,000,000 □ 4. Allotment transfer (see list attached) ( No Totals changes in delivery instructions will be accepted) T h e undersigned (m em ber bank) hereby certifies that the T reasury bills w hich you are hereby instructed to dispose of in the m anner indicated in item 3 above are ow ned solely by the undersigned. (Name of subscriber—please print or type) Insert this tender in special envelope marked “Tender for Treasury Bills" (Address—incl. City and State) (Signature of subscriber or authorized signature) (Tel. No.) (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 ST 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 same price 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 Y o r k ; checks e n d o r s e d t o this Bank will n o t be a c c e p te d . 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. Rtv. 3/76 [ 36 ] v (Closing date (or receipt of this tender is Monday, August 30, 1976) TENDER FOR 182-DAY TREASURY BILLS Dated September 2, 1976 To F ederal Reserve B ank of Ma|urlllg March j N ew Y ork, Dated a t................................................... Fiscal Agent of the United States ------------ -------------------------- -------- 19— I 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: I ? Do not fill in both Competitive and Noncompetitive tenders on one form COMPETITIVE TENDER ) $.....................................................(maturity value) or any lesser amount that may be awarded. NONCOMPETITIVE TENDER $.................... ................. .............. (maturity value) (Not to exceed $500000 for one bidder through all sources) Price: ......................... ......................per 100. at the average price of accepted competitive bids, (Price must be expressed with not more than three decimal places, for example, 99.925) Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Pieces Denomination req u ired oata is furnished. $ Maturity value 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 □ 3. Hold in safekeeping (for mem ber bank only) in— 50,000 Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery (Paym ent cannot be made through Treasury T ax and Loan Account) □ Investment Account 100,000 □ FI G eneral A ccount — 500,000 5. Special instructions: □ Trust Account □ 1,000,000 4. Allotment transfer (see list attached) (N o changes in delivery instructions w ill be accepted) Totals 5 3 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. 3 i tl (NaoMof aobaerito—plouo print ortjrpo) Insert this tender in special envelope marked “Tender for Treasury Bills" (Addreu—Lnci. City and State) (T«i. No.) (Signature of subseribtr or authorired aigeature) (Title of authorised 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) INSTRUCTIONS: 1. No 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 same price 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. Rsf,FRASER 3/76 Digitized for l 36 J
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