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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 7 9 8 1 * 1 November 3, 1976 J O F F E R IN G OF TW O S E R IE S O F T R E A S U R Y B IL L S $ 2 ,6 0 0 ,0 0 0 ,0 0 0 o f 9 0 - D a y B i l l s , A d d it io n a l A m o u n t , S e r ie s D a t e d A u g u s t 1 2 , 1 9 7 6 , D u e F e b r u a r y 1 0 , 1 9 7 7 (T o B e Issu ed N o v em b er 12, 1 9 7 6 ) $ 3 , 7 0 0 ,0 0 0 ,0 0 0 o f 1 8 1 - D a y B i l l s , D a t e d N o v e m b e r 1 2 , 1 9 7 6 , D u e M a y 1 2 , 1 9 7 7 T o A l l I n c o r p o r a te d B a n k s a n d T r u s t C o m p a n ie s , a n d O th e r s C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : F o llo w in g is th e t e x t o f a n o tic e is s u e d b y th e T r e a s u r y D e p a r tm e n t, r e le a s e d y e s t e r d a y : The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $6,300 million, or thereabouts, to be issued November 12, 1976, as follows: 90-day bills (to maturity date) in the amount of $2,000 million, or thereabouts, representing an additional amount of bills dated August 12, 1976, and to mature February 10, 1977 (CUSIP No. 912793 1251), originally issued in the amount of $3,803 million, the additional and original bills to be freely interchangeable. 181-day bills, for $3,700 million, or thereabouts, to be dated November 12, 1976, and to mature May 12, 1977 (CUSIP No. 912793 G26). 1 lie bills will be issued for cash and in exchange for Treasury bills maturing November 12, 1976, outstanding in the amount of $6,304 million, of which Government accounts and Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $3,50/ million. These accounts may exchange bills they hold for the bills now being offered at the average prices of accepted tenders. I he bills will be issued on a discount basis under competitive and noncompetitive bidding, 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. lenders will be received at Federal Reserve Banks and Branches and, from individuals, at the Bureau of the Public Debt, Washing ton, I).C. 20226, up to 1 :30 p.m,, Eastern Standard time, Monday, November 8, 197b. 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. Banking institutions and dealers which make primary markets m 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 bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Public announcement will be made by the Department of the I reasury of the amount anti price range of accepted bids. 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 r e j e c t any o r 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 m accordance with the bids must be made or completed at the Federal Reserve Bank o r Branch or at the Bureau of the Public Debt on November 12, 1976, in cash or other immediately available ,UIKlsinf ' ? a !ike *ace am°unt of Treasury bills maturing November 1_, 1976. Lash 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 19d4, 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 bills (othei than life insurance companies) issued hereunder must include in his hederal 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. Department of the Treasury 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 t n i / n r F£ dLra Reserve Bank or Branch, or from the Bureau of tne Public Debt. i r ^ llLS,1,ank wil1 receive tenders for both series up to 1:30 p.m., Eastern Standard time Mrmrk.r i o thH SSjUrities DePartment of.i,s Office and at its Buffalo Branch. Tender forms for the respectfv™ serie^' arc enclosed. Please use Ae appropriate forms to submit tenders and return them in the enclosed cnveloii marked f it L'XS2& asw.'ast* * * — — r :s«,r■ - *■ «■* ■ Results of the last weekly offering of Treasury bills (91-dav bilk tn h* ke,,„u \t« i ,a -, idditional amount of bills dated August 5. 1976, maturing February 3 1977 . f o - A !” !er ,4; T representing an maturing May 5, 1977) are shown on the reverse side of this circular ' '* * * dated Nu™nber 4, 1976, 461 P aul A. V olcker, P r e s id e n t . ( over ) P lease note that the cu rren t offering is fo r 90-day and 181-day T reasu ry hills. R E S U L T S O F L A S T W E E K L Y O F F E R IN G O F T R E A S U R Y B IL L S (T W O S E R IE S T O B E IS S U E D N O V E M B E R 4 , 1 9 7 6 ) Range of Accepted Competitive Bids 91 - D a y T r e a s u r y B ills M a t u r i n g F e b r u a r y 3 , 1977 Price H igh ................................................... L o w ..................................................... A verage ............................................ 98.776 98.770 98.771 18 2 - D a y T r e a s u r y B ills M a t u r i n g M a y 3 , 1977 Discount Rate Investment Rate 1 Price Discount Rate Investment Ratet 4.842% 4.866% 4.862% 4.97% 4.99% 4.99% 97.46 l a 97.453 97.457 5.022% 5.038% 5.030% 5.22% 5.24% 5.23% 1 E q u iv a len t cou p on -issu e yield . a E x c ep tin g one tender of $1,000,000. (78 percent of the am ount of 91-day bills bid for at the low price was accepted.) (26 percent of the am ount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 9 1-D a y F.R. D is tr ic t (a n d U S . T r e a s u r y ) B o s to n ............................................ New Y o r k ..................................... Philadelphia ................................. Cleveland ..................................... R ic h m o n d .................................... A tlanta ........................................ C h ic a g o ........................................ St. L o u is ...................................... M inneapolis ................................. K ansas City ............................... Dallas ............................................ San F ra n c is c o ............................... U .S. T reasu ry ............................ T o t a l s ....................................................... R e c e iv e d $ 49,805,000 31,875,000 36,045,000 17,140,000 28,605,000 277,960,000 64,045,000 34,175,000 32,705,000 103,035,000 184,080,000 205,000 205,000 $4,708,995,000 $ $2,602,540,000b T r e a s u r y B ills 3 , 1977 M a tu r in g M a y A c c e p te d b In clu d es $331,165,000 n on com p etitive tenders from the public, c In clu d es $134,160,000 n on com p etitive tenders from the public. 3 , 19 77 15,390,000 2,236,025,000 27,420,000 30,175,000 15,640,000 24,855,000 70,600,000 20,155,000 13,175,000 27,985,000 93,035,000 27,880,000 3,849,320,000 18 2 - D a y T r e a s u r y B ills M a tu r in g F e b ru a r y R e c e iv e d $ 54,540,000 7,763,025,000 15,620,000 213,080,000 53,100,000 24,415,000 573,260,000 69,130,000 25,290,000 13,380,000 23,145,000 404,330,000 15,000 $9,232,330,000 A c c e p te d $ 4,540,000 3,498,470,000 5,620,000 25,180,000 6, 100,000 12,415,000 16,260,000 46,130,000 2,290,000 12,530,000 15,145,000 63,990,000 15,000 $3,708,685,000°
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