View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK OF NEW YORK
F isca l A g e n t o f th e U n ite d States

[

CircularNo. 8213*1
November 9,1977 J

OFFERING OF TWO SERIES OF TREASURY BILLS
$2,200,000,000 of 91-Day Bills, Additional Amount, Series Dated August 1 8 ,1 9 7 7 , Due February 1 6 ,1 9 7 8
(T o Be Issued November 17, 1977)
$3,300,000,000 of 182-Day Bills, Dated November 17, 1977, Due May 18, 1978

To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
F o llo w in g is the tex t o f a n o tice issu ed b y the T r e a s u r y

D ep artm en t, released y e s te r d a y :

The Department of the Treasury, by this public notice, invites
tenders for two series of Treasury bills totaling approximately
$5,500 million, to be issued November 17, 1977. This pffering will
not provide new cash for the Treasury as the maturing bills are
outstanding in the amount of $5,510 million. The two series offered
are as follow s:

Payment for the full par amount of the bills applied for mutt
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.

91-day bills (to maturity date) for approximately $2,200
million, representing an additional amount of bills dated
August 18, 1977, and to mature February 16, 1978
(C U S I P N o. 912793 N 7 7 ) , originally issued in the
amount of $3,403 million, the additional and original
bills to be freely interchangeable.

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.

182-day bills for approximately $3,300 million to be dated
November 17, 1977, and to mature M ay 18, 1978
( C U S I P N o. 912793 Q 4 1 ).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing November 17, 1977. Federal Reserve Banks,
for themselves and as agents of foreign and international monetary
authorities, presently hold $2,782 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 Standard time, Monday, November 14,
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 o rk 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.

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 November 17, 1977, in cash or other immediately available funds
or in Treasury bills maturing November 17, 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.

T h is B a n k w ill receiv e ten ders fo r b oth series up to 1 :30 p.m ., E a stern S tan d ard tim e, M o n d a y , N o v e m b e r 14,
1977, at the S ecu rities D ep a rtm en t o f its H e a d O ffice and at its B u ffa lo B ra n ch . T e n d e r fo rm s fo r the respective series
are en closed . P lea se use the a p p rop ria te fo rm s to su bm it tenders and retu rn th em in the en closed en v elop e m arked
“ T e n d e r fo r T r e a s u r y B ills .” F o r m s fo r su bm ittin g ten d ers d irectly to the T r e a s u r y are available fr o m the G ov ern m en t
B o n d D iv is io n o f this B ank. T e n d e r s n ot re q u irin g a d e p o s it m ay be su bm itted b y telegraph , s u b je ct to w ritten co n fir ­
m a tio n ; n o ten ders m a y be su bm itted b y teleph on e. 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.
R esu lts o f the last w eek ly o ffe r in g o f T r e a s u r y bills (9 1 - d a y bills to be issu ed N o v e m b e r 10, 1977, rep resen tin g an
ad d ition a l am ou n t o f bills dated A u g u s t 11, 1977, m a tu rin g F e b ru a ry 9, 1 9 7 8 ; an d 18 2 -d a y bills dated N o v e m b e r 10,
1977, m a tu rin g M a y 11, 1 9 7 8 ) are sh ow n on the reverse side o f this circu la r.

[46]



P

au l

A. V

olcker

,

President.
( over)

RESULTS O F 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 N O VE M B ER 10, 1977)

Range of Accepted Competitive Bids
9 1 -Day Treasury Bills
Maturing February 9 ,1 9 7 8

18 2 -Day Treasury Bills
Maturing May 1 1 ,1 9 7 8

Price

Discount
Rate

Investment
Rate 1

Price

Discount
Rate

Investment
R ate1

H i g h .....................................

9 8 .4 4 1 a

6 .1 6 7 %

6 .3 5 %

9 6 .7 4 4

6 .4 4 0 %

L o w .......................................

9 8 .4 3 4

6 .1 9 5 %

6 .3 8 %

9 6 .7 3 0

6 .4 6 8 %

6 .7 8 %

A v e r a g e ............................... ...................

98.4 3 6

6 .1 8 7 %

6 .3 7 %

9 6 .7 3 2

6 .4 6 4 %

6 .7 8 %

6 .7 5 %

1 Equivalent coupon-issue yield.
a Excepting one tender of $115,000.

(6 5 percen t o f the am ou n t o f 1 8 2-d ay bills
b id fo r at the lo w p rice w a s a cce p te d .)

( 1 9 p ercen t o f the am ou n t o f 9 1 -d a y bills
b id fo r at the lo w p rice w as a cce p te d .)

Total Tenders Received and Accepted
182 -Day Treasury Bills
Maturing May 1 1 ,1 9 7 8

9 1 -Day Treasury Bills
Maturing February 9 ,1 9 7 8

Received

F.R. District (and U S . Treasury)
B o s t o n ...............................................
N e w Y o r k ........................................

$

2 9 ,7 5 0 ,0 0 0
3 ,6 8 4 ,2 1 0 ,0 0 0

$

2 5 ,7 0 0 ,0 0 0
1 ,8 8 1 ,0 4 0 ,0 0 0

Accepted

Received

Accepted
$

4 1 ,7 6 0 ,0 0 0
4 ,7 9 0 ,6 0 0 ,0 0 0

$

6 ,7 6 0 ,0 0 0
2 ,6 8 9 ,0 3 0 ,0 0 0

Philadelphia................................

2 6 ,1 6 0 ,0 0 0

2 6 ,1 6 0 ,0 0 0

5 ,4 3 5 ,0 0 0

5 ,4 3 5 ,0 0 0

C le v e la n d ..........................................

5 9 ,0 9 5 ,0 0 0

3 4 ,7 8 5 ,0 0 0

6 5 ,4 9 5 ,0 0 0

2 0 ,4 9 5 ,0 0 0
10,695,000

R ic h m o n d .........................................

18,115,000

16,115,000

2 0 ,1 9 5 ,0 0 0

A t la n t a ..............................................

3 3 ,3 0 5 ,0 0 0

2 7 ,4 9 5 ,0 0 0

2 0 ,4 6 0 ,0 0 0

18,430,000

C h i c a g o ..............................................

2 0 4 ,8 9 5 ,0 0 0

150,275,000

3 1 0 ,4 3 0 ,0 0 0

1 3 0,900,000

S t. L o u i s ...........................................

4 4 ,2 0 0 ,0 0 0

2 2 ,6 5 0 ,0 0 0

4 7 ,0 9 5 ,0 0 0

1 5 ,365,000

6 ,0 8 5 ,0 0 0

2 6 ,3 2 0 ,0 0 0

6 ,2 7 0 ,0 0 0
2 3 ,9 6 0 ,0 0 0

M in n e a p o lis .....................................

2 9 ,0 8 5 ,0 0 0

K a n sa s C i t y .....................................

3 4 ,3 1 0 ,0 0 0

2 9 ,8 1 0 ,0 0 0

2 7 ,6 7 0 ,0 0 0

D a l la s .................................................

4 1 ,4 6 5 ,0 0 0

14 ,9 6 5 ,0 0 0

2 9 ,0 3 5 ,0 0 0

2 0 ,5 3 5 ,0 0 0

S an F r a n c i s c o .................................

3 4 9 ,0 1 0 ,0 0 0

6 6 ,0 0 5 ,0 0 0

8 0 3 ,2 3 5 ,0 0 0

4 5 5 ,4 1 0 ,0 0 0

U .S . T r e a s u r y ................................

2 2 5 ,0 0 0

2 2 5 ,0 0 0

3 7 0 ,0 0 0

3 7 0 ,0 0 0

T otals ................................

$ 4 ,5 5 3 ,8 2 5 ,0 0 0

$ 6 ,1 8 8 ,1 0 0 ,0 0 0

$ 3 ,4 0 3 ,6 5 5 ,0 0 0

$ 2 ,3 0 1 ,3 1 0 ,0 0 0 b

b Includes $361,995,000 noncompetitive tenders from the public.
c Includes $197,005,000 noncompetitive tenders from the public.