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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ Circular No. 8 0 6 7 March 9, 1977 ] OFFERING OF TWO SERIES OF TREASURY BILLS $2,100,000,000 of 91-Day Bills, Additional Amount, Series Dated December 16,1976, Due June 16,1977 (To Be Issued March 17,1977) $3,100,000,000 of 182-Day Bills, Dated March 17, 1977, Due September 15,1977 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 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 : Others 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 $5,200 million, or thereabouts, to be issued March 17, 1977, as follows: 91-day bills (to maturity date) in the amount of $2,100 million, or thereabouts, representing an additional amount of bills dated December 16, 1976, and to mature June 16, 1977 (CUSIP No. 912793 G75), originally issued in the amount of $3,202 million, the additional and original bills to be freely interchangeable. 182-day bills, for $3,100 million, or thereabouts, to be dated March 17, 1977, and to mature September 15, 1977 (CUSIP No. 912793 K21). 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 less without stated price from any one bidder will be accepted in The bills will be issued for cash and in exchange for Treasury full at the average price (in three decimals) of accepted competi bills maturing March 17, 1977, outstanding in the amount of tive bids for the respective issues. Settlement for accepted tenders $5,207 million, of which Government accounts and Federal Reserve in accordance with the bids must be made or completed at the Banks, for themselves and as agents of foreign and international Federal Reserve Bank or Branch or at the Bureau of the Public monetary authorities, presently hold $2,995 million. These accounts Debt on March 17, 1977, in cash or other immediately available may exchange bills they hold for the bills now being offered at the funds or in a like face amount of Treasury bills maturing March average prices of accepted tenders. 17, 1977. Cash and exchange tenders will receive equal treatment. The bills will be issued on a discount basis under competitive 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 March 14, 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 for which the return is made. may not be used. Department of the Treasury Circular No. 418 (current revision) Banking institutions and dealers which make primary markets 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, March 14, 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 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. Payment for Treasury hills cannot he made by credit through the Treasury Tax and Loan Account. Settlement must he 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 March 10, 1977, representing an additional amount of bills dated December 9, 1976, maturing June 9, 1977; and 182-day bills dated March 10, 1977, maturing September 8, 1977) are shown on the reverse side of this circular. P a u l A. V o lck er , President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 10, 1977) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing June 9,1977 High ............................................ Low .............................................. Average........................................ P r ic e D isc o u n t R a te 98.830 98.821 98.824 4.629% 4.664% 4.652% 182 -Day Treasury Bills Maturing September 8,1977 I n v e stm e n t R a te 1 4.75% 4.79% 4.77% P r ic e D isc o u n t R a te I n v e s tm e n t R a tel 97.502 97.486 97.490 4.941% 4.973% 4.965% 5.14% 5.17% 5.16% 1Equivalent coupon-issue yield. (58 percent of the amount of 91-day bills bid for at the low price was accepted.) (73 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 9 1 -Day Treasury Bills Maturing June 9,1977 F .R . D i s t r i c t (and U S . Boston...................................... New York .............................. Philadelphia ............................ Cleveland ................................ Richmond................................ Atlanta .................................... Chicago .................................. St. Louis.................................. Minneapolis ............................ Kansas City ............................ Dallas ............................ San Francisco ........................ U.S. Treasury ........................ T otals .......................................... A c c e p te d R e c e iv e d A c c e p te d 22,965,000 1,837,340,000 23,385,000 33,485,000 18,115,000 30,850,000 104,415,000 31,995,000 9,935,000 26,780,000 14,425,000 146,585,000 $ 30,760,000 4,742,720,000 16,880,000 145,730,000 30,855,000 32,520,000 296,770,000 94,575,000 48,365,000 28,325,000 17,485,000 372,515,000 $ 12,760,000 2,892,870,000 14,180,000 45,730,000 14,855,000 26,670,000 150,770,000 37,825,000 17,365,000 27,325,000 15,485,000 146,165,000 30,000 230,000 230,000 R e c e iv e d T rea su ry) $ 24,965,000 3,330,160,000 24,540,000 33,695,000 27,115,000 33,820,000 291,415,000 44,995,000 33,935,000 26,780,000 22,425,000 304,475,000 $ 30,000 $4,198,350,000 $2,300,305,000 a a Includes $330,725,000 noncompetitive tenders from the public. bIncludes $152,920,000 noncompetitive tenders from the public. 182 -Day Treasury Bills Maturing September 8,1977 $5,857,730,000 $3,402,230,000 b
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