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F E D E R A L R E S E R V E B A N K O F NEW YO R K
Fiscal Agent of the United States
r Circular No. 8 1 5 9 " ]
L August 10, 1977 J

OFFERING OF T W O SERIES OF T R E A SU R Y RILLS
$2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated May 19, 1977, Due November 17, 1977
(To Be Issued August 18, 1977)
$3,400,000,000 of 182-Day Bills, Dated August 18, 1977, Due February 16, 1978
To All 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 Department, released yesterday :
The Department of the Treasury, by this public notice, invites
tenders for two series of Treasury bills totaling approximately
$5,700 million, to be issued August 18, 1977, as follow s:
91-day bills (to maturity date) for approximately $2,300
million, representing an additional amount of bills dated
May 19, 1977, and to mature November 17, 1977
(C U S IP No. 912793 L38), originally issued in the
amount of $3,203 million, the additional and original
bills to be freely interchangeable.
182-day bills for approximately $3,400 million to be dated
August 18, 1977, and to mature February 16, 1978
(C U S IP No. 912793 N 77). The 182-day bills, with a
limited exception, will be available in book-entry form
only.
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing August 18, 1977, outstanding in the amount
of $5,707 million, of which Government accounts and Federal
Reserve Banks, for themselves and as agents of foreign and inter­
national monetary authorities, presently hold $2,857 million. These
accounts may exchange bills they hold for the bills now being
offered at the weighted average prices of accepted competitive
tenders.
The bills will be issued on a discount basis under competitive
and noncompetitive bidding, and at maturity their par amount will
be payable without interest. 91-day bills 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), as well as in book-entry form to
designated bidders. Bills in book-entry form will be issued in a
minimum amount of $10,000 and in any higher $5,000 multiple.
Except for 182-day bills in the $100,000 denomination, which will
be available in definitive form only to investors who are able to
show that they are required by law or regulation to hold securities
in physical form, the 182-day bills will be issued entirely in bookentry form on the records either of the Federal Reserve Banks
and Branches, or of the Department of the Treasury.
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, Monday, August 15,
1977. Form PD 4632-2 should be used to submit tenders for bills to
be maintained on the book-entry records of the Department of the
T reasury.
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 who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of New Y ork 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. Others are only permitted to submit tenders for their
own account.

Payment for the full par amount of the 182-day bills applied for
must accompany all tenders submitted for such bills to be main­
tained on the book-entry records of the Department of the Treasury.
A cash adjustment will be made on all accepted tenders for the
difference between the par payment submitted and the actual issue
price as determined in the auction.
N o deposit need accompany tenders from incorporated banks and
trust companies and from responsible and recognized dealers in
investment securities for the 91-day bills and 182-day bills to be
maintained on the book-entry records of Federal Reserve Banks
and Branches, or for 182-day bills issued in bearer form, where
authorized. A deposit of 2 percent of the par amount of the bills
applied for must accompany tenders for such bills from others,
unless an express guaranty of payment by an incorporated bank
or trust company accompanies the tenders.
Public announcement will be made by the Department of the
Treasury of the amount and price range of accepted bids. Com­
petitive bidders will be advised of the acceptance or rejection of
their tenders. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in
part, and the Secretary’s action 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 weighted average price (in three decimals) of accepted
competitive bids for the respective issues.
Settlement for accepted tenders for the 91-day and 182-day bills
to be maintained on the book-entry records of Federal Reserve
Banks and Branches, and 182-day bills issued in bearer form must
be made or completed at the Federal Reserve Bank or Branch or
at the Bureau of the Public Debt, on August 18, 1977, in cash or
other immediately available funds or in Treasury bills maturing
August 18, 1977. Cash adjustments will be made for differences
between the par value of the 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 these bills are sold
is considered to accrue when the bills are sold, redeemed or other­
wise disposed of, and the bills are excluded from consideration
as capital assets. Accordingly, the owner of these bills (other
than life insurance companies) must include in his or her Federal
income tax return, as ordinary gain or loss, the difference between
the price paid for the bills, whether on original issue or on subse­
quent 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 Circulars, No. 418 (current revi­
sion), Public Debt Series— Nos. 26-76 and 27-76, and this notice,
prescribe the terms of these Treasury bills and govern the condi­
tions of their issue. Copies of the circulars and tender forms 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, August 15,
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.” Forms for submitting tenders for 6-month hills directly to the Treasury are available from
the Government Bond Division of this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject
to written confirmation; no tenders may be submitted by telephone. Payment for Treasury hills cannot he ynade 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 August 11, 1977, representing an
additional amount of bills dated May 12, 1977, maturing November 10, 1977; and 182-day bills dated August 11, 1977,
maturing February 9, 1978) are shown on the reverse side of this circular.
r i




P

aul

A. V

olcker

,

President.
( over)

RESULTS OF LA ST W E E K L Y OFFERING OF T R E A SU R Y BILLS
(T W O SERIES TO BE ISSUED A U GU ST 11, 1977)

Range of Accepted Competitive Bids

91 -Day Treasury Bills
Maturing November 10, 1977

Price

High ............................ .................
Low ............................. .................
A verage....................... .................

98.655
98.643
98.647

182-Day Treasury Bills
Maturing February 9, 1978

Investment
Rate 1

Discount
Rate

Price

Discount
Rate

Investment
R a te1

5.47%
5.52%
5.50%

97.141
97.124
97.129

5.655%
5.689%
5.679%

5.90%
5.94%
5.93%

5.321%
5.368%
5.353%

1 Equivalent coupon-issue yield.

(35 percent of the amount of 182-day bills
bid for at the low price was accepted.)

(99 percent of the amount of 91-day bills
bid for at the low price was accepted.)

Total Tenders Received and Accepted

182-Day Treasury Bills
Maturing February 9, 1978

91 -Day Treasury Bills
Maturing November 10,1977

Boston .....................................
New York ................................
Philadelphia .............................
Cleveland ..................................
Richm ond.................................
Atlanta ......................................
Chicago.....................................
St. Louis .................................
Minneapolis .............................
Kansas C ity ..............................
Dallas ........................................
San Francisco ..........................
U.S. Treasury .........................
T

otals

.............................................

$

22,055,000
3,860,855,000
59,790,000
27,470,000
21,195,000
18,630,000
180,665,000
39,290,000
20,225,000
32,420,000
40,590,000
377,225,000

$

22,005,000
1,926,605,000
24,790,000
27,470,000
20,185,000
18,630,000
79,655,000
27,290,000
5,225,000
32,420,000
40,590,000
176,675,000




$

33,690,000
5,408,305,000
28,090,000
19,650,000
30,085,000
17,605,000
284,455,000
29,695,000
25,375,000
14,815,000
7,790,000
446,580,000

125,000

125,000

60,000

$4,700,535,000

$2,401,665,000

$6,346,195,000

a Includes $304,795,000 noncompetitive tenders from the public,
b Includes $126,800,000 noncompetitive tenders from the public.

Accepted

Received

Accepted

Received

F.R. District (and U S . Treasury)

$

23,690,000
3,124,305,000
8,090,000
9,650,000
17,085,000
17,605,000
102,455,000
10,195,000
10,375,000
14,815,000
6,790,000
156,330,000
60,000

$3,501,445,000 b

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