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FEDER AL RESERVE BANK O F N EW YORK Fiscal Agent of the United States No. 79591 [ Circular September 22, 1976 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated July 1, 1976, Due December 30, 1976 (To Be Issued September 30, 1976) $3,400,000,000 of 182-Day Bills, Dated September 30, 1976, Due March 31, 1977 To All 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 The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $5,700 million, or thereabouts, to be issued September 30, 1976, as follows: 91-day bills (to maturity date) in the amount of $2,300 million, or thereabouts, representing an additional amount of bills dated July 1, 1976, and to mature December 30, 1976 (CUSIP No. 912793 D78), originally issued in the amount of $3,402 million, the additional and original bills to be freely interchangeable. 182-day bills for $3,400 million, or thereabouts, to be dated September 30, 1976, and to mature March 31, 1977 (CUSIP No. 912793 F43). The bills will be issued for cash and in exchange for Treasury bills maturing September 30, 1976, outstanding in the amount of $5,703 million, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,778 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, September 27, 1976. Tenders will not be re ceived 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 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 Department, released yesterday: 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 30, 1976, in cash or other im mediately available funds or in a like face amount of Treasury bills maturing September 30, 1976. Cash and exchange tenders will re ceive 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 :30 p.m., Eastern Daylight Saving time, Monday, September 27, 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 firmation; no tenders may be submitted by telephone. P a y m e n t fo r T r e a s u r y b ills c a n n o t be m a d e b y c r e d it th r o u g h th e T r e a s u r y l a x a n d L o a n A c c o u n t. S e t tle m e n t m u s t be m a d e in cash or o th e r im m e d ia te ly a va ila b le fu n d s o r in m a tu r in g T r e a s u r y bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued September 23, 1976, representing an additional amount of bills dated June 24, 1976, maturing December 23, 1976; and 182-day bills dated September 23, 1976, maturing March 24, 1977) are shown on the reverse side of this circular. P aul A. V olcker, President. ( over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 23, 1976) Range of Accepted Competitive Bids pi-Day Treasury Bills Maturing December 23, 1976 High ........................................ Low ....................................... Average .................................. 182 -Day Treasury Bills Maturing March 24, 1977 Price Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 98.736 98.728 98.729 5.000% 5.032% 5.028% 5.13% 5.17% 5.16% 97.364a 97.348 97.353 5.214% 5.246% 5.236% 5.43% 5.46% 5.45% a Excepting one tender of $3,500,000. 1Equivalent coupon-issue yield. (38 percent of the amount of 182-day bills bid for at the low price was accepted.) (94 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted (By Federal Reserve District) 91 -Day Treasury Bills Maturing December 23 , 1976 182 -Day Treasury Bills Maturing March 24, 1977 Boston...................................... New Y ork................................ Philadelphia ............................ Cleveland ................................ Richmond................................ Atlanta .................................... Chicago.................................... St. Louis.................................. Minneapolis ............................ Kansas City ............................ Dallas ...................................... San Francisco.......................... Received $ 31,530,000 3,700,235,000 21,315,000 31,435,000 20,995,000 23,090,000 256,420,000 54,135,000 24,855,000 26,575,000 29,045,000 183,215,000 Accepted $ 16,530,000 1,870,950,000 20,765,000 30,310,000 15,845,000 19,320,000 31,475,000 27,720,000 6,855,000 23,050,000 16,045,000 22,190,000 Received $ 26,450,000 4,453,050,000 8,800,000 63,940,000 17,975,000 15,215,000 298,915,000 42,545,000 37,310,000 18,145,000 25,150,000 222,265,000 Accepted $ 11,450,000 2,802,050,000 8,800,000 13,940,000 7,475,000 15,030,000 103,855,000 20,545,000 21,810,000 18,145,000 14,910,000 64,165,000 T otals ............................ $4,402,845,000 $2,101,055,000b $5,229,760,000 $3,102,175,000= District bIncludes $325,175,000 noncompetitive tenders from the public, c Includes $162,675,000 noncompetitive tenders from the public. (Closing d at e for r e c e i p t of t h i s t en de r is Monday, S ep te mb er 2 7, 19 7 6 ) TENDER FOR 91-DAY TREASURY BILLS Additional Amount, Series Dated July 1, 1976, Maturing December 30, 1976 ( Io Be Issued September 30, 1976) T o F ed er al R eserve B a n k of N ew Y o r k , D a ted at F is c a l A g e n t o f th e U n ite d S ta te s , 19---- P u r s u a n t to th e p ro v is io n s o f T r e a s u r y D e p a rtm e n t C ir c u la r N o . 4 1 8 ( c u r r e n t re v is io n ) a n d to th e p r o v i o f t h e p u b l i c notice i s s u e d by t h e T r e a s u r y D e p a r t m e n t i n v i t i n g t e n d e r s f o r t h e Treasury b i l l s , t h e undersigned hereby o f f e r s t o p u r c h a s e such T r e a s u r y b i l l s in t h e a m o u n t and a g r e e s t o make p a y m e n t t h e r e f o r a t y o u r B a n k o n o r b e f o r e t h e i s s u e d a t e a t t h e p r i c e sio n s Do not fill in both Competitive and COMPETITIVE TENDER Noncompetitive te n d e rs on one fo r m a b o v e -d e s c rib e d i n d ic a te d b e lo w , in d ic a te d b e lo w : NONCOMPETITIVE TEN D ER $ ................................................................................... ( m a t u r i t y v a l u e ) $ ................................................................................... ( m a t u r i t y v a l u e ) or any lesser amount that may be awarded. (Not to exceed $500,000 for one bidder through all sources) Price : ..................................................per 100. (P r ic e m u s t be e x p r e s s e d w i th n o t m o re th a n three at the average price of accepted co m p e titiv e bid s. decimal places, for example, 99.925) Subject Pieces to a llo tm e n t, p le a s e is s u e , d e liv e r, a n d a c c e p t p a y m e n t f o r th e b ills a s in d ic a te d b e lo w : D enom ination 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— □ Investment Account 50,000 100,000 (P aym en t cannot be made through T reasury T ax and Loan Account) □ 5. !~1 G eneral A rrnim t 500,000 Payment will be made as f o l lo w s : □ By charge to our reserve account □ By cash or check in immediately available funds on d e liv e ry S p e c ia l in s tr u c tio n * : □ Trust Account 1,000,000 □ 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 ivill be accepted) Totals 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 *ubscriber—please print or type) In se rt th is te n d e r in sp e c ia l e n v e lo p e m a rk e d “ T e n d e r fo r T re a s u ry B ills ” (Address—incl. City and State) (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. 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. j . 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 ol the turn, who should sign in the form “............................................................................... ( a copartnership, by .................................. ....... ............................................... . a member of the firm.” 4. renders will be revived 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 N e w 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 T r e a s u r y is material, the tender may be disregarded. Rev. 3/76 [ 40 ] (Closing date for receipt of this tender is Monday, September 27, 1976) TENDER FOR 182-DAY TREASURY BILLS Dated September 30, 1976 Vi 5 £s co to T o F ederal R eserve B a n k Maturing March 31, 1977 of N ew Y ork , Dated at Fiscal A gent o f the U nited States 191 Pursuant to the provisions of Treasury Department Circular N o. 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 NONCOMPETITIVE TENDER $................................................................. (maturity value) or any lesser amount that may be awarded. $................................................................ (maturity value) (Not 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 competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below : Pieces Denomination > > $ Maturity value 10,000 □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned 15,000 50,000 □ 3. Hold in safekeeping (for mem ber bank only) in— Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds on delivery (Payment cannot be made through Treasury Tax and Loan Account) □ Investment Account 100,000 □ 5. Special instructions: 500,000 □ Trust Account 1,000,000 □ 4. Allotment transfer (see list attached) (No changes in delivery instructions will be accepted) Totals 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 mbscriber—please print or type) Insert this tender in special envelope marked uTender for Treasury Billsn (Address—incl. City and State) (Tel. No.) (Signature of subscriber or authorised signature) (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. Rw.3/76 [ 40 ]
@FedFRASER