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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ Circular No. 7 9 9 8 1 November 24, 1976 J OFFERING OF TWO SERIES OF TR EA SUR Y BILLS $ 2 , 500 , 000,000 of 91-Day B ills, A dditional Am ount, Series Dated September 2, 1976, Due March 3, 1977 (T o Be Issued Decem ber 2, 1976) $3,500,000,000 of 182-Day B ills, Dated Decem ber 2, 1976, Due June 2, 1977 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 le r a l R e s e r v e D i s t r i c t : Following is the text of a notice issued by the Treasury Department, released yesterday: The Department of the Treasury, by this public notice, invites tenders for t w o series of Treasury bills to the aggregate amount of $6,000 million, or thereabouts, to be issued December 2, 1976, as fo llo w s: 91-day bills (to maturity date) in the amount of $2,500 million, or thereabouts, representing an additional amount of bills dated September 2, 1976, and to mature M arch 3, 1977 (C U S I P No. 912793 E 8 5 ), originally issued in the amount of $3,602 million, the additional and original bills to be freely interchangeable. 182-day bills, for $3,500 million, or thereabouts, to be dated December 2, 1976, and to mature June 2, 1977 (C U S I P N o. 912793 GS9). The bills will be issued for cash and in exchange for Treasury bills maturing December 2, 1976, outstanding in the amount of $6,005 million, of which Government accounts and Federal Reserve Banks, for them selves and as agents of foreign and international monetary authorities, presently hold $2,553 million. These accounts may exchange bills they hold for the bills now being offered at the average prices of accepted tenders. The 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 w ill be issued in bearer form in denominations of $10,UU0, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e), and in book-entry form to designated bidders. Tenders will be received at Federal Reserve Banks and Branches and, from individuals, at the Bureau of the Public Debt, W ashing ton, D.C. 20226, up to 1 :30 p.m., Eastern Standard time, Monday, Novem ber 29, 1976. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be in m ultiples of $5,000. In the case of competitive tenders the price offered m ust be expressed on the basis of 100, w ith not more than three decimals, e.g., 99.925. Fractions may not be used. Banking institutions and dealers which make primary markets in Government securities and report daily to the Federal Reserve Bank of N ew York their positions w ith respect to Government securities and borrowings thereon may submit tenders for account of custom ers 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 Treasury of the amount and 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 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 or Branch or at the Bureau of the Public Debt on December 2, 1976, in cash or other immediately available funds or in a like face amount of Treasury bills maturing December 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 bills (other than life insurance companies) issued hereunder must in clude in his Federal 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 from any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 29, 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 enveloped 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 for Treasury bills cannot be made by credit through the T r e 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 a d e in cash or o ther im m e d ia te ly available junds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (90-day bills to be issued November 26, 1976, representing an additional amount of bills dated August 26, 1976, maturing February 24, 1977; and 181-day bills dated November 26, 1976, maturing May 26, 1977) are shown on the reverse side of this circular. P a u l A. V [491 olcker, President. (amt) RESULTS OF LAST W EEKLY OFFERING OF TR EA SUR Y BILLS (TWO SERIES TO BE ISSUED NOVEM BER 26, 1976) Range of A ccepted Com petitive Bids 90-Day Treasury Bills Maturing February 24, 1977 H igh.............................................. Low ....................... ...................... Average....................................... Price Discount Rate 98.862 98.845 98.851 4.552% 4.620% 4.596% 18 1 -Day Treasury Bills Maturing May 26, 1977 Investment Ratei 4.67% 4.74% 4.71% Price Discount Rate Investment Ratei 97.658a 97.640 97.646 4.658% 4.694% 4.682% 4.84% 4.87% 4.86% a E x c ep tin g tw o tenders to talin g $825,000. 1 E q u ivalen t co u p on -issu e yield. (34 per cent of the amount of 181-day bills bid for at the low price was accepted.) (18 per cent of the amount of 90-day bills bid for at the low price was accepted.) Total Tenders R eceived and Accepted 90-Day Treasury Bills Maturing February 24, 1977 Received Boston...................................... $ 27,735,000 3,870,615,000 New York .............................. 18,565,000 Philadelphia ............................ 23,720,000 Cleveland ............................... 18,980,000 Richmond................................ 46,535,000 Atlanta .................................... 300,995,000 Chicago.................................... 45,500,000 St Louis ............ 27,585,000 Minneapolis ............................ 25,450,000 Kansas City ...................... -.... 23,580,000 Dallas ....................... ........ -.... 96,760,000 San Francisco.......................... F.R. District (and US. Treasury) U.S. Treasury ........................ T otals ............................ Accepted $ 26,095,000 2,193,115,000 16,335,000 23,720,000 18,980,000 46,535,000 132,795,000 30,680,000 15,285,000 20,595,000 18,940,000 57,980,000 1 0 ,0 0 0 1 0 ,0 0 0 $4,526,030,000 $2,601,065,000b i) Includes $320,050,000 noncompetitive tenders from the public, c Includes $143,965,000 noncompetitive tenders from the public. 18 1 -Day Treasury Bills Maturing May 26, 1977 Received $ 25,930,000 5,539,345,000 5,940,000 112,875,000 8,055,000 19,610,000 470,510,000 44,525,000 36,285,000 33,075,000 17,630,000 216,000,000 Accepted $ 9,930,000 3,295,645,000 4,785,000 12,875,000 8,055,000 19,065,000 62,810,000 15,865,000 21,285,000 32,075,000 12,630,000 105,000,000 55,000 55,000 $6,529,835,000 $3,600,075,000°