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FED ER A L R ESER VE BANK O F NEW YORK
Fiscal Agent of the United States

[

Circular No. 8 1 1 1 1
May 11, 1977

J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,100,000,000 of 91-Day Bills, Additional Amount, Series Dated February 17, 1977, Due August 18, 1977
(To Be Issued May 19, 1977)
$3,200,000,000 of 182-Day Bills, Dated May 19, 1977, Due November 17, 1977
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

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 two series of Treasury bills to the aggregate amount of
$5,300 million, or thereabouts, to be issued May 19, 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 February 17, 1977, and to mature
August 18, 1977 (CUSIP No. 912793 J64), originally
issued in the amount of $3,603 million, the additional
and original bills to be freely interchangeable.
182-day bills, for $3,200 million, or thereabouts, to be dated
May 19, 1977, and to mature November 17, 1977
(CUSIP No. 912793 L38).
The bills will be issued for cash and in exchange for Treasury
bills maturing May 19, 1977. This offering will provide for a net
pay-down for the Treasury of about $700 million as the maturing
issues are outstanding in the amount of $6,008 million, of which
Government accounts and Federal Reserve Banks, for themselves
and as agents of foreign and international monetary authorities,
presently hold $3,066 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 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
and, from individuals, at the Bureau of the Public Debt, Washing­
ton, D.C. 20226, up to 1 :30 p.m., Eastern Daylight Saving time,
Monday, May 16, 1977. 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
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

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
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 May 19, 1977, in cash or other immediately available
funds or in a like face amount of Treasury bills maturing May 19,
1977.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 Daylight Saving time, Monday, May 16,
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. P a y m e n t fo r T re a su ry bills ca n n o t be m ade by cred it th ro u g h
th e 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 ade in cash or o th er im m e d ia te ly available fu n d s or in
m a tu rin g T re a su ry bills.

Results of the last weekly offering of Treasury bills (91-day bills to be issued May 12, 1977, representing an
additional amount of bills dated February 10, 1977, maturing August 11, 1977; and 182-day bills dated May 12, 1977,
maturing November 10, 1977) are shown on the reverse side of this circular.

r20i




P a u l A. V olcker ,

President.
( over)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED MAY 12, 1977)

Range of Accepted Competitive Bids
9 1 -D a y T re a su ry B ills
M a tu rin g A u g u s t u , 19 7 7

Price

98.789
98.777
98.781

High ........................... .................
Low ............................. .................
Average....................... .................

Discount
Rate

1 8 2 -D a y T re a su ry B ills
M a tu rin g N o v e m b e r 1 0 , 19 7 7

Investment
Rate 1

Price

Discount
Rate

Investment
R a te 1

4.92%
4.97%
4.95%

97.414
97.401
97.406

5.115%
5.141%
5.131%

5.32%
5.35%
5.34%

4.791%
4.838%
4.822%

1 Equivalent coupon-issue yield.

(60 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 re a su ry B ills
M a tu rin g A u g u s t 1 1 , 19 7 7

Boston ......................................
New York ...............................
Philadelphia .............................
Cleveland .................................
Richmond .................................
Atlanta ......................................
Chicago......................................
St. Louis .................................
Minneapolis .............................
Kansas City .............................
Dallas ........................................
San Francisco .........................

Accepted

Received

P.R. D istrict (and U S . Treasury)

$

29,145,000
3,582,655,000
22,140,000
33,850,000
19,500,000
23,930.000
162,385,000
32.595,000
31,100,000
26,765,000
36,720,000
444,815.000

U.S. Treasury .........................

55,000

T o t a l s .....................................

$4,445,655,000

$

24,145,000
1,822,510,000
22,140,000
33,770,000
17,100,000
21,430,000
78,365,000
23,730,000
29,100,000
26,240,000
26,720,000
75.815,000
55,000

$2,201,120,000a

a Includes $290,055,000 noncompetitive tenders from the public.
•' Includes $142,800,000 noncompetitive tenders from the public.




1 8 2 -D a y T re a su ry B ills
M a tu rin g N o v e m b e r 1 0 , 19 7 7

$

Received

Accepted

22,970,000
5,116,570,000
5,385,000
63,560,000
47,310,000
12,585,000
211,490,000
29,880,000
36,510,000
20,080,000
14,490,000
481.900.000

$ 10,970,000
3,098,820,000
5,020,000
13,560,000
9,310,000
11,920,000
67,835,000
18,880,000
11,510,000
13,935,000
10,990.000
27.600,000

40,000

40,000

$6,062,770,000

$3.300,390,000b