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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States [ Circular No. 8 0 4 5 T February 2, 1977 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated November 12, 1976, Due May 12, 1977 (To Be Issued February 10, 1977) $3,700,000,000 of 182-Day Bills, Dated February 10,1977, Due August 11,1977 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 The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $6,400 million, or thereabouts, to be issued February 10, 1977, as follows: 91-day bills (to maturity date) in the amount of $2,700 million, or thereabouts, representing an additional amount of bills dated November 12, 1976, and to mature May 12, 1977 (CUSIP No. 912793 G26), originally issued in the amount of $3,702 million, the additional and original bills to be freely interchangeable. 182-day bills, for $3,700 million, or thereabouts, to be dated February 10, 1977, and to mature August 11, 1977 (CUSIP No. 912793 J56). Department, released yesterday: 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 The bills will be issued for cash and in exchange for Treasury less without stated price from any one bidder will be accepted in bills maturing February 10, 1977, outstanding in the amount of full at the average price (in three decimals) of accepted competi $6,407 million, of which Government accounts and Federal Reserve tive bids for the respective issues. Settlement for accepted tenders Banks, for themselves and as agents of foreign and international in accordance with the bids must be made or completed at the monetary authorities, presently hold $3,131 million. These accounts Federal Reserve Bank or Branch or at the Bureau of the Public may exchange bills they hold for the bills now being offered at the Debt on February 10, 1977, in cash or other immediately available funds or in a like face amount of Treasury bills maturing February average prices of accepted tenders. 1977. Cash and exchange tenders will receive equal treatment. The bills will be issued on a discount basis under competitive 10, Cash adjustments will be made for differences between the par and noncompetitive bidding, and at maturity their face amount will value of maturing bills accepted in exchange and the issue price of be payable without interest. They will be issued in bearer form in the new bills. denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and Under Sections 454(b) and 1221(5) of the Internal Revenue $1,000,000 (maturity value), and in book-entry form to designated Code of 1954, the amount of discount at which bills issued here bidders. under are sold is considered to accrue when the bills are sold, Tenders will be received at Federal Reserve Banks and Branches redeemed or otherwise disposed of, and the bills are excluded from and, from individuals, at the Bureau of the Public Debt, Washing consideration as capital assets. Accordingly, the owner of bills ton, D.C. 20226, up to 1:30 p.m., Eastern Standard time, Monday, (other than life insurance companies) issued hereunder must in February 7, 1977. Each tender must be for a minimum of $10,000. clude in his Federal income tax return, as ordinary gain or loss, the Tenders over $10,000 must be in multiples of $5,000. In the case of difference between the price paid for the bills, whether on original competitive tenders the price offered must be expressed on the basis issue or on subsequent purchase, and the amount actually received of 100, with not more than three decimals, e.g., 99.925. Fractions either upon sale or redemption at maturity during the taxable year may not be used. for which the return is made. Banking institutions and dealers which make primary markets Department of the Treasury Circular No. 418 (current revision) in Government securities and report daily to the Federal Reserve and this notice prescribe the terms of the Treasury bills and govern Bank of New York their positions with respect to Government the conditions of their issue. Copies of the circular may be obtained securities and borrowings thereon may submit tenders for account from any Federal Reserve Bank or Branch, or from the Bureau of of customers provided the names of the customers are set forth in the Public Debt. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, February 7, 1977, 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 Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued February 3, 1977, representing an addi tional amount of bills dated November 4, 1976, maturing May 5, 1977; and 182-day bills dated February 3, 1977, matur ing August 4, 1977) are shown on the reverse side of this circular. P aul A. V olcker, President. ( o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED FEBRUARY 3, 1977) Range of Accepted Competitive Bids 9 1 -D a y T r e a s u r y B ills M a tu r in g M a y 5 ,1 9 7 7 Price H ig h ................................................ Low ................................................ A verage.......................................... 98.813 98.803 98.807 Discount Rate 182 -D a y T r e a s u r y B ills M a tu r in g A u g u s t 4, 1977 Investment Ratel Price Discount Rate Investment Rate l 4.82% 4.86% 4.84% 97.479 97.462 97.468 4.987% 5.020% 5.008% 5.19% 5.22% 5.21% 4.696% 4.735% 4.720% 1Equivalent coupon-issue yield. (24 percent of the amount of 91-day bills bid for at the low price was accepted.) (27 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 9 1 - D a y T r e a s u r y B ills M a tu r in g M a y 5 ,1 9 7 7 F.R. District (and U S . Treasury) Boston........................................ New York ............................... Philadelphia ............................. Cleveland ................................. Richmond ................... Atlanta ............................... Chicago................... St. L ouis................... Minneapolis ....................... Kansas City .... Dallas ............... San Francisco........................... U.S. Treasury ......................... T otals .......................................... Received $ 25,210,000 3,791,115,000 50,450,000 60,620,000 28,380,000 20,530,000 288,340,000 42,110,000 32,185,000 44,795,000 142,940,000 141,685,000 $ 23,210,000 1,984,115,000 50,450,000 60,620,000 23,360,000 20,530,000 84,580,000 29,830,000 32,185,000 43,795,000 137,940,000 109,665,000 — $2,600,280,000 a a Includes $332,060,000 noncompetitive tenders from the public. b Includes $126,070,000 noncompetitive tenders from the public. Received Accepted — $4,668,360,000 182 -D a y T r e a s u r y B ills M a tu r in g A u g u s t 4 ,1 9 7 7 $ 63,025,000 5,843,040,000 8,525,000 130,650,000 18,300,000 15,530,000 443,340,000 34,745,000 17,670,000 50,875,000 22,305,000 329,025,000 Accepted $ 44,295,000 3,285,990,000 8,525,000 29,650,000 6,800,000 10,815,000 67,110,000 13,285,000 15,480,000 21,360,000 12,305,000 184,755,000 110,000 110,000 $6,977,140,000 $3,700,480,000'
@FedFRASER