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FEDER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r L Circular No. 8 1 7 6 September 7, 1977 1 J OFFERIN G OF T W O SERIES OF T R E A S U R Y BILLS $2,500,000,000 o f 91-Day Bills, Additional Am ount, Series Dated June 16, 1977, Due December 15,1977 (T o Be Issued September 15, 1977) $3,500,000,000 o f 182-Day Bills, Dated September 15, 1977, Due March 16, 1978 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 Department, released yesterday: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $6,000 million, to be issued September 15, 1977. This offering will not provide new cash for the Treasury as the maturing bills are outstanding in the amount of $6,007 million ($901 million of which represent 9-day bills issued September 6 , 1977). The two series offered are as fo llo w s: 91-day bills (to maturity date) for approximately $2,500 million, representing an additional amount of bills dated June 16, 1977, and to mature December 15, 1977 (C U S I P N o. 912793 L 7 9 ), originally issued in the amount of $3,001 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,500 million to be dated September 15, 1977, and to mature March 16, 1978 (C U S I P N o. 912793 P 3 4 ). Both series of bills will be issued for cash and in exchange for Treasury bills maturing September 15, 1977. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,870 million of the maturing bills. These accounts may exchange bills they hold for the bills now being offered at the weighted average prices of accepted competi tive 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. Except for definitive bills in the $100,000 denomination, which will be available only to investors who are able to show that they are required by law or regulation to hold securities in physical form, both series of bills will be issued entirely in book-entry form in a minimum amount of $ 10,000 and in any higher $5,000 multiple, 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, September 12, 1977. Form P D 4632-2 (for 26-week series) or Form P D 4632-3 (for 13-week series) should be used to submit tenders for bills to be maintained on the book-entry records of the Department of the Treasury. 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 N ew 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 bills applied for must accompany all tenders submitted for bills to be maintained 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 bills to be maintained on the book-entry records of Federal Reserve Banks and Branches, or for 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. Competi tive 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 bills to be maintained on the book-entry records of Federal Reserve Banks and Branches, and bills issued in bearer form must be made or completed at the Fed eral Reserve Bank or Branch or at the Bureau of the Public Debt on September 15, 1977, in cash or other immediately available funds or in Treasury bills maturing September 15, 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 4 5 4 (b ) and 12 2 1 (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 in come tax return, as ordinary gain or loss, the difference between the price paid for the bills, whether on original issue or on sub sequent 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, N o. 418 (current revi sion), Public Debt Series— N os. 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, September 12, 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 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 confir mation; 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 (9 1 -day bills to be issued September 8, 1977, representing an additional amount of bills dated June 9, 1977, maturing December 8, 1977; and 182-day bills dated September 8, 1977, maturing March 9, 1978) are shown on the reverse side of this circular. P aul A. V olcker, President. ( o ver ) RESULTS OF LAST W E E K L Y O FFERIN G OF T R E A S U R Y BILLS (T W O SERIES TO BE ISSUED SEPTEM BER 8, 1977) Range o f Accepted Competitive Bids 182-Day Treasury Bills Maturing March 9,1978 pi-Day Treasury Bills Maturing December 8,1977 Price High ............................ ................ Low ............................... ................ A verage........................ ................ 1 Equivalent 98.604 98.593 98.596 Discount Rate Investment Rate 1 5.523% 5.566% 5.554% Price 5.68% 5.72% 5.71% 97.051a 97.042 97.045 coupon-issue yield. Discount Rate Investment Rate 1 5.833% 5.851% 5.845% 6.09% 6.11% 6.11% a Excepting one tender of $65,000. (81 percent of the amount of 91-day bills bid for at the low price was accepted.) (79 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91 -Day Treasury Bills Maturing December 8, 1977 F.R. District (and US. Treasury) Boston ..................................... New York ............................... Philadelphia ............................. Cleveland ................................. Richm ond................................. Atlanta ...................................... Chicago..................................... St. Louis ................................. Minneapolis ............................. Kansas City ............................. Dallas ........................................ San Francisco ......................... 25,085,000 3,142,060,000 22,835,000 37,025,000 34,565,000 24,370,000 328,985,000 33,720,000 17,395,000 20,315,000 23,740,000 300,890,000 U.S. Treasury ......................... 115,000 T otals ................................... $4,011,100,000 $ 24,135,000 1,670,265,000 22,835,000 31,950,000 28,565,000 24,370,000 167,915,000 18,720,000 17,395,000 20,315,000 23,740,000 152,140,000 115,000 $2,202,460,000b b Includes $303,920,000 noncompetitive tenders from the public. c Includes $134,170,000 noncompetitive tenders from the public. Accepted Received Accepted Received $ 182-Day Treasury Bills Maturing March 9, 1978 $ 14,310,000 5,126,155,000 6,880,000 71,555,000 36,415,000 26,455,000 687,285,000 29,775,000 17,300,000 16,860.000 27,070,000 508,580,000 70,000 $6,568,710,000 $ 4,310,000 2,831,595,000 6,880,000 31,555,000 17,365,000 13,355,000 104,260,000 13,395,000 17,300,000 16,860,000 16,070,000 127,230,000 70,000 $3,200,245,000' TB-3 (Rev. 8/77) IMPORTANT—This is a standard form. Its terms are subject to change at any time by the Treasury. Ahis tender will be construed as a bid to purchase the securities for which the Treasury has outstand ing an invitation for tenders on the date received by the Federal Reserve Bank of New York or its Buf falo Branch. TENDER FO R 3-M ONTH B O O K -E N T R Y T R E A SU R Y BILLS (F or Use in Subscribing Through a Financial Institution) Do Not Use This Form for Direct Subscriptions to the Treasury To F ederal R eserve B ank of N ew Y ork . Fiscal Agent of the United States New York, N.Y. 10045 Dated a t .................................................................. • ..........................................................’ 1Q ..... Pursuant and subject to the provisions of Treasury Department Circulars No. 26-76 and No. 27-76, Public Debt Series, and to the provisions of the public notice issued by the Treasury Department inviting tenders for the current offering of 3-month Treasury bills, the undersigned hereby offers to purchase such currently o f fered Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER D o not fill in both Competitive and Noncompetitive tenders on one form $......................................................... (maturity value) or a n y lesser amount that may be awarded. NONCOMPETITIVE TENDER $......................................................... (maturity value) (N ot to exceed $500,000 for one bidder through all sources) P r ic e :............................................... per 100. at the average price of accepted competitive bids. (Price must be expressed with not more than three decimal places, for example, 99.925) Subject to allotment, please issue and accept payment for the bills as indicated below: Safekeeping or Delivery Instructions Payment Instructions (N o changes will be accepted) Book-Entry— □ Payment will be made as fo llow s: 1. H old in safekeeping (for member bank only) in— □ □ Investment Account □ General Account □ Trust Account By charge to our reserve account By check in immediately available funds □ By surrender of eligible maturing securities □ By charge to my correspondent bank 2. H old as collateral for Treasury T a x and Loan Account* 5 □ 3. W ire to......................................................................................................................... (E xa ct Receiving Bank W ire Address/Account) Definitive— □ □ □ 4. Issue in definitive form f (in $100,000 denominations only) and— □ Deliver over the counter to the undersigned □ Ship to the undersigned * The undersigned certifies that the allotted securities (Name of Correspondent) (Payment cannot be made through Treasury Tax and Loan Account) will be owned solely by the undersigned. f This tender is submitted by the undersigned f o r .................................................................................................... ,, which is required by law (Name of entity) or regulation ( ................................................ .................................................) to hold or pledge securities in definitive form. (Separate tender (Give citation) forms must be submitted for each such entity.) (Name of subscriber—please print or type) Insert this tender in envelope marked “Tender for Treasury Bills (Address—incl. City and State) (Tel. No.) ” (Signature of subscriber or authorized signature) (Title of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity value). 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation that such officer has been so authorized. If the tender is made by a partnership, it should be signed by a member of the firm, who should sign in the form “ ............................................................................................................... , a copartnership, by ..........................................................................................................., a member of the firm.” 4. 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 Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. A ll checks must be drawn to the order of the Federal Reserve Bank of New Y o r k ; and personal checks should be certified. Checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. G B 2 1 5 (R ev. 6 / 7 7 ) IMPORTANT This is a standard form. Its terms are subject to change at any time by the Treasury. Ihis tender will be construed as a bid to purchase the securities for which the Treasury has outstand ing an invitation for tenders on the date received by the Federal Reserve Bank of New York or its Buffalo Branch. TEN DER FO R 6-M ONTH B O O K -E N T R Y T R E A S U R Y BILLS (F or Use in Subscribing Through a Financial Institution) Do Not Use This Form for Direct Subscriptions to the Treasury To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States New York, N.Y. 10045 o E" qj S o ’3 Z COMPETITIVE TENDER Do not fill in both Competitive and Noncompetitive tenders on one form $......................................................... (maturity value) or any lesser amount that may be awarded. Price: ............................................... per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) iu *>>°■ ’ 5rtu aju Q<vO. <2Vw- NONCOMPETITIVE TENDER $......................................................... (maturity value) (N ot to exceed $500,000 for one bidder through all sources) at the average price of accepted competitive bids. Subject to allotment, please issue and accept payment for the bills as indicated below: Safekeeping or Delivery Instructions Payment Instructions (N o changes will be accepted) Book-Entry— □ Payment will be made as fo llow s: 1. Hold in safekeeping at FRBNY (for member bank only) i n - •~PQ □ o g •rsa> <uV , 19. Pursuant and subject to the provisions of Treasury Department Circulars No. 26-76 and No. 27-76, Public Debt Series, and to the provisions of the public notice issued by the Treasury Department inviting tenders for the current offering of 6-month Treasury bills, the undersigned hereby offers to purchase such currently of fered Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: V X) O'O Dated at. Investment Account □ General Account □ Trust Account 2. Hold as collateral for Treasury T a x and Loan Account* 5 □ 3. W ire to...................................................................................................... □ Bv charge to our reserve account By check in immediately available funds □ Definitive— □ □ □ B y surrender of eligible maturing securities □ By charge to my correspondent bank (Exact Receiving Bank Wire Address/Account) 4. Issue in definitive fo rm f (in $100,000 denominations only) and□ Deliver over the counter to the undersigned □ Ship to the undersigned (Name of Correspondent) ( Payment cannot be made through Treasury Tax and Loan Account) * The undersigned certifies that the allotted securities will be owned solely by the undersigned. t This tender is submitted by the undersigned f o r .................................................................................................... t which is required by law (Name of entity) or regulation ( ..................................................................................................) to hold or pledge securities in definitive form. (Separate tender (Give citation) forms must be submitted for each such entity.) Insert this tender in envelope marked “Tender for Treasury Bills” (Name of subscriber—please print or type) (Address—incl. City and State) (Tel. No.) (Signature of subscriber or authorized signature) (Title of authorized signer) (Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider) (Name of customer) (Name of customer) IN S T R U C T IO N S : 1. N o tender for less than $10,000 will be considered, and each tender must be for a multiple of $5,000 (maturity value). 2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate competitive tenders at the same price and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder and the amount bid for his account. Others will not be permitted to submit tenders except for their own account. 3. If the person making the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender by an officer of the corporation will be construed as a representation that such officer has been so authorized. If the tender is made by a partnership, it should be signed by a member o f the firm, who should sign in the form “ ............................................................................................................... , a copartnership, by ........................................................................................................... . a member of the firm.” 4. 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 Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. A ll checks must be drawn to the order of the Federal Reserve Bank of New Y o r k ; and personal checks should be certified. Checks endorsed to this Bank will not be accepted. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded.
@FedFRASER