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F E D E R A L R E S E R V E BAN K
O F N EW Y O R K
Fiscal Agent of the United States

8 13
[ Circular No. 1977 I n
June 21,
J

T R E A S U R Y TO A U C T IO N $1,500 M ILLION OF 15-Y E A R 1-M ONTH BONDS

To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued yesterday by the Treasury Department:
The Department of the Treasury will auction $1,500 million of 15-year 1-month bonds to raise new cash.
Additional amounts of the bonds may be issued to Federal Reserve Banks as agents of foreign and interna­
tional monetary authorities at the average price of accepted tenders.

Printed on the reverse side is a table summarizing the highlights of the offering. Copies of the
official offering circular will be furnished upon request.
Bidders submitting noncompetitive tenders should realize that it is possible that the average
price may be above par, in which case they would have to pay more than the face value for the
securities.
If payment is made by check, the check should be a certified personal check or an official bank
check, payable on its face to the Federal Reserve Bank of New York; checks endorsed to this Bank
will not be accepted.
Enclosed is a copy of the form to be used in submitting tenders. If there is any doubt that ten­
ders sent by mail will reach this Bank or its Branch on time, bidders should use other means of
transmitting their tenders.
A recorded message (at the Head Office — Tel. No. 212-791-5823; at the Buffalo Branch —
Tel. No. 716-849-5046) provides information about this and other Treasury offerings; additional
inquiries regarding this offering may be made by calling, at the Head Office, Tel. No. 212-791-6619
or 212-791-5465, or, at the Buffalo Branch, Tel. No. 716-849-5016.




P

aul

A. V

olcker

,

President.

( over)

HIGHLIGHTS OF TREASURY
OFFERING TO THE PUBLIC
OF 15-YEAR 1-MONTH BONDS
TO BE ISSUED JULY 8, 1977

Amount Offered:
To the public ..............................

$1,500 million

Description of Security:
Term and type of security..........

15-year 1-month bonds

Series and CUSIP designation ...

Bonds of 1992
(C U SIP No. 912810 BY3)

Maturity date ..............................

August 15, 1992

Call date........................................

No provision

Interest coupon ra te ....................

To be determined, based on the
average of accepted bids

Investment yield ..........................

To be determined at auction

Premium or discount ..................

To be determined after auction

Interest payment dates................

February 15 and August 15 (first
payment on February 15, 1978)

Minimum denomination available

$1,000

Terms of Sale:
Method of sale..................................................

Yield auction

Accrued interest payable by investor............

None

Preferred allotment .........................................

Noncompetitive bid for $1,000,000
or less

Deposit requirement........................................

5°/o of face amount

Deposit guarantee by designated institutions

Acceptable

Key Dates:
Deadline for receipt of tenders............................................................................ Tuesday, June 28, 1977,
by 1 :30 p.m., EDST
Settlement date (final payment due)
a) Cash or Federal fu n d s....................................................................................

Friday, July 8, 1977

b) Check drawn on bank within FRB district where submitted...................

Tuesday, July 5, 1977

c) Check drawn on bank outside FRB district where submitted ................. Triday, July 1, 1977
Delivery date for coupon securities...................................................................... Thursday, July 14, 1977




UNITED STATES OF AMERICA
TREASURY BONDS OF 1992
DEPARTMENT CIRCULAR
Public Debt Series - No. 15-77

1.

1.

DEPARTMENT OF THE TREASURY,
OFFICE OF THE SECRETARY,
Washington, June 21, 1977.

1. INVITATION FOR TENDERS
The Secretary of the Treasury, under the authority

of the Second Liberty Bond Act, as amended, invites tenders for
approximately $1,500,000,000 of United States securities,
designated Treasury Bonds of 1992 (CUSIP No. 912610 BY 3).

The

securities will be solo at auction with bidding on the basis of
yield.

Payment will be required at the price equivalent of the

bid yield of each accepted tender.

The interest rate on the

securities and the price equivalent of each accepted bid will be
determined in the manner described below.

Additional amounts of

these securities may be issued for cash to Federal Reserve Banks
as agents of foreign and international monetary authorities.
2.
2.

1.

DESCRIPTION OF SECURITIES

The securities will be dated July 6, 1977, and will

bear interest from that date, payable on a semiannual basis on
February 15, 1976, and each subsequent 6 months on August 15 ano
February 15 until the principal becomes payable.

They will

mature August 15, 1992, and will not be subject to call for
redemption prior to maturity.
2. 2. The income derived from the securities is subject
to all taxes imposed under the Internal Revenue Code of 1954.
The securities are subject to estate, inheritance, gift or other
excise taxes, whether Federal or State, but are exempt from all
taxation now or hereafter imposed on the principal or interest
thereof by any State, any possession of the United States, or
any local taxing authority.
2. 3. The securities will be acceptable to secure
deposits of public monies.
payment of taxes.




They will not be acceptable in

-2 -

2.

4.

Bearer securities with interest coupons attached,

and securities registered as to principal and interest, will be
issued in aenominations of $1,000, $5,000, $10,000, $100,000,
and $1,000,000. Book-entry securities will be available to
eligible bidders in multiples of those amounts. Interchanges of
securities of aifferent denominations and of coupon, registered,
and book-entry securities, and the transfer of registered
securities will be permitted.
2. 5. The Department of the Treasury's general regulations
governing United States securities apply to the securities
offered in this circular.

These general regulations include

those currently in effect, as well as those that may be issued
at a later date.
3.
3.

1.

SALE PROCEDURES

Tenders will be received at Federal Reserve Banks

and Branches and at the Bureau of the Public Debt, Washington,
D. C. 20226, up to 1:30 p.m., Eastern Daylight Saving time,
Tuesday, June 2u, 1977. Noncompetitive tenders as defined below
will be considered timely if postmarked no later than Monday,
June 27, 1977.
3. 2. Each tender must state the face amount of securities bid
for.

The minimum bio is $1,000 and larger bids must be in

multiples of that amount.

Competitive tenders must also show

the yield desired, expressed in terms of an annual yield with
two decimals, e.g., 7.11%. Common fractions may not be usea.
Noncompetitive tenders must show the term "noncompetitive" on the
tender form in lieu of a specified yield.

No bidder may submit

more than one noncompetitive tender and the amount may not
exceed $1,000,000.
3. 3. Commercial banks, which for this purpose are defined
as banks accepting demand deposits, and primary dealers, which
for this purpose are defined as dealers who make primary markets
in Government securities and report daily to the Federal Reserve
Bank of New York their positions in and borrowings on such
securities, may submit tenders for account of customers if the
names of the customers and the amount for each customer are
furnished.
own account.



Others are only permitted to submit tenders for their

3. 4. Tenders will be received without deposit for their
own account from commercial banks and other banking institutions
primary dealers, as defined above; Federally-insured savings and
loan associations; States, and their political subdivisions or
instrumentalities; public pension and retirement and other
public funds; international organizations in which the United
States holds membership; foreign central banks and foreign
states; Federal Reserve Banks; and Government accounts.

Tenders

from others must be accompanied by a aeposit of 5% of the face
amount of securities applied for (in the form of cash, maturing
Treasury securities or readily collectible checks), or by a
guarantee of such deposit by a commercial bank or a primary
dealer.
3.

5.

Immediately after the closing hour, tenders will

be opened, followed by a public announcement of the amount and
yield range of accepted bids.

Subject to the reservations

expressed in Section 4, noncompetitive tenders will be accepted
in full at the weighted average price (in three decimals) of
accepted competitive tenders, and competitive tenders with the
lowest yields will be accepted to the extent required to attain
the amount offered.

Tenders at the highest accepted yield will

be prorated if necessary.

After the determination is made as to

which tenders are accepted, a coupon rate will be established,
on the basis of a

1/8

of one percent increment, which results in

an equivalent average accepted price close to 100.000 and a
lowest accepted price above the original issue discount limit of
96.250.

That rate of interest will be paid on all of the

securities.

Based on such interest rate, the price on each

competitive tender allotted will be determined and each
successful competitive bidder will be required to pay the price
equivalent to the yield bid.

Price calculations will be carried

to three decimal places on the basis of price per hundred, e.g.,
99.923, and the determinations of the Secretary of the Treasury
shall be final. If the amount of noncompetitive tenders received
would absorb all or most of the offering, competitive tenders




will be accepted in an amount sufficient to provide a fair
aetermination of the yield.

Tenders received from Government

accounts and Federal Reserve Banks will be accepted at the
weighted average price of accepted competitive tenders.
3.

6.

Competitive bidders will be advised of the acceptance

or rejection of their tenders.

Those submitting noncompetitive

tenders will only be notified if the tender is not accepted in
full or when the price is over par.
4.
4.

1.

RESERVATIONS

The Secretary of the Treasury expressly reserves

the right to accept or reject any or all tenders in whole or in
part, to allot more or less than the amount of securities
specified in Section 1, and to make different percentage
allotments to various classes of applicants when the Secretary
considers it in the public interest.

The Secretary's action

under this Section is final.
b.

1.

5. PAYMENT AND DELIVERY
Settlement for allotted securities must be made or

completed on or before Friday, July 8, 1977, at the Federal
Reserve Bank or Branch or at the Bureau of the Public Debt,
wherever the tender was submitted.

Payment must be in cash; in

other funds immediately available to the Treasury; in Treasury
bills, notes or bonds (with all coupons detached) maturing on or
before the settlement date but which are not overdue as defined
in the general regulations governing United States securities;
or by check drawn to the order of the institution to which the
tender was submitted, which must be received at such institution
no later than:
(a) Tuesday, July b, 1977, if the check is drawn on a bank
in the Federal Reserve District of the institution to
which the check is submitted (the Fifth Federal Reserve
District in case of the Bureau of the Public Debt), or
(b) Friday, July 1, 1977, if the check is drawn on a bank




in another Federal Reserve District.

-5 -

Checks received after the dates set forth in the preceding
sentence will not be accepted unless they are payable at the
applicable Federal Reserve Bank.

Payment will not be considered

complete where registered securities are requested if the
appropriate identifying number as required on tax returns and
other documents submitted to the Internal Revenue Service (an
individual's social security number or an employer identification
number) is not furnished. Wnen payment is made in securities, a
cash adjustment will be made to or required of the bidder for
any difference between the face amount of securities presented
and the amount payable on the securities allotted.
b.

2.

In every case where full payment is not completed

on time, the deposit submitted with the tender, up to b percent
of the face amount of securities allotted, shall, at the
discretion of the Secretary of the Treasury, be forfeited to the
United States.
b. 3. Registered securities tendered as deposits and in
payment for allotted securities are not required to be assigned
if the new securities are to be registered in the same names and
forms as appear in the registrations or assignments of the
securities surrendered.

Vvhen the new securities are to be

registered in names and forms different from those in the
inscriptions or assignments of the securities presented, the
assignment should be to "Tne Secretary of the Treasury for
(securities offered by this circular) in the name of (name and
taxpayer identifying number)."

If new securities in coupon form

are desired, the assignment should be to "The Secretary of the
Treasury for coupon (securities offered by this circular) to be
delivered to (name and address)."

Specific instructions for the

issuance and delivery of tne new securities, signed by the owner
or authorized representative, must accompany the securities
presented. Securities tendered in payment should be surrendered
to the Federal Reserve Bank or Branch or to the Bureau of the
Public Debt, Washington, D. C. 20226.

The securities must be

delivered at the expense and risk of the holder.




-6 -

5.

4.

If bearer securities are not ready for delivery on

the settlement date, purchasers may elect to receive interim
certificates. These certificates shall be issued in bearer form
and shall be exchangeable for aefinitive securities of this
issue, when such securities are available, at any Federal
Reserve Bank or Branch or at the Bureau of the Public Debt,
Washington, D. C. 2022b.

The interim certificates must be

returned at the risk and expense of the holder.
b.

b.

Delivery of securities in registered form will be

maae after the requested form of registration has been validated,
the registered interest account has been established, and the
securities have been inscribea.
b. GENERAL PROVISIONS
t. 1. As fiscal agents of the Unitea States, Federal
>
Reserve Banks are authorized and requested to receive tenders,
to make allotments as airectea by the Secretary of the Treasury,
to issue such notices as may be necessary, to receive payment
for and make aelivery of securities on full-paid allotments, and
to issue interim certificates pending delivery of the definitive
secur it ies.
b. 2.

The Secretary of the Treasury may at any time issue

supplemental or amendatory rules and regulations governing the
offering.

Public announcement of such changes will be promptly

proviaea.




W. Michael Blumenthal,
Secretary of the Treasury.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102