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F E D E R A L R E S E R V E B A N K O F N EW Y O R K Fiscal Agent of the United States 8218*1 [CircularNo. November 16, 1977 J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $2,300,000,000 of 90-Day Bills, Additional Amount, Series Dated August 2 5 ,1 9 7 7 , Due February 2 3 ,1 9 7 8 (To Be Issued November 25, 1977) $3,500,000,000 of 181-Day Bills, Dated November 25, 1977, Due May 25, 1978 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: F o llo w in g is the tex t o f a n otice issu ed b y the T r e a s u r y D ep a rtm 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 $5,800 million, to be issued November 25, 1977. This offering will provide $300 million of new cash for the Treasury as the maturing bills are outstanding in the amount of $5,505 million. The two series offered are as follow s: 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. 90-day bills (to maturity date) for approximately $2,300 million, representing an additional amount of bills dated August 25, 1977, and to mature February 23, 1978 (C U S I P N o. 912793 N 8 5 ) , originally issued in the amount of $3,404 million, the additional and original bills to be freely interchangeable. 181-day bills for approximately $3,500 million to be dated November 25, 1977, and to mature M ay 25, 1 9 /8 (C U S I P N o. 912793 Q 5 8 ). 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. Both series of bills will be issued for cash and in exchange for Treasury bills maturing November 25, 1977. Federal Reserve Banks, for themselves and as agents of ioreign and international monetary authorities, presently hold $2,748 million of the maturing bills. These accounts may exchange bills they hold tor the bins now being ottered 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 21, 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 25, 1977, in cash or other immediately available funds or in Treasury bills maturing November 25, 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) and Public Debt Series— Nos. 26-76 and 27-76, and this notice prescribe the terms of these Treasury bills and govern the conditions 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 both series up to 1 :30 p .m ., E astern S ta n d a rd tim e, M o n d a y , N o v e m b e r 21, 1977, at the S ecu rities D ep a rtm en t o f its H e a d O ffice an d a t 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 ten ders 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 sit m ay be su bm itted b y telegraph , su b je ct to w ritten c o n fir m a tio n ; n o ten d ers m a y be su bm itted b y teleph on e. P a ym e n t for T reasu ry bills cannot be m ade by credit through the T reasu ry T a x and L oan A ccou nt. S ettlem en t m u st be m ade in cash or other im m ediately available funds or in m atu rin g T reasu ry bills. R esu lts o f the last w eek ly o ffe rin g o f T re a su ry bills (9 1 - d a y bills to be issued N o v e m b e r 17, 1977, represen tin g an ad d ition a l am ou n t o f bills dated A u g u s t 18, 1977, m atu rin g F e b ru a ry 16,_ 1 9 7 8 ; and 182-d ay bills dated N o v e m b e r 17, 1977, m a tu rin g M a y 18, 1 9 7 8 ) are sh ow n o n the reverse side o f this circu la r. P [47] aul A. V olcker, President. (over) Please note that the current offering is fo r 90-day and 181-day Treasury bills. RESULTS O F L A 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 VEM BER 17, 1977) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing February 16 , 1978 Price 182 -Day Treasury Bills Maturing May 18 , 1978 Discount Rate 6 .0 6 9 % Investment Rate 1 Price Investment R a te1 Discount Rate H i g h .................................... ..................... 9 8 .4 6 6 a 6 .2 5 % 9 6 .7 8 9 b 6 .3 5 1 % 6 .6 5 % L o w ..................................... .................... 9 8 .4 5 8 6 .1 0 0 % 6 .2 8 % 9 6 .7 7 4 6 .3 8 1 % 6 .6 9 % A v e r a g e ............................. ..................... 9 8 .4 6 0 6 .0 9 2 % 6 .2 7 % 9 6 .7 7 8 6 .3 7 3 % 6 .6 8 % 1 Equivalent coupon-issue yield. 3 Excepting one tender of $150,000. b Excepting one tender of $10,000. ( 4 4 p ercen t o f the a m ou n t o f 9 1 -d a y bills ( 2 p ercen t o f the a m ou n t o f 182-d ay bills bid for at the low price w as accepted.) bid for at the low price w as accepted.) Total Tenders Received and Accepted 9 1 -Day Treasury Bills Maturing February 16 , 1978 182 -Day Treasury Bills Maturing May 1 8 ,1 9 7 8 San F r a n c i s c o ................................. Received $ 28,380,000 3,563,210,000 23,525,000 61,375,000 25,130,000 31,050,000 354,430,000 47,580,000 15,345,000 78,765,000 21,315,000 271,245,000 Accepted $ 28,380,000 1,809,940,000 23,525,000 27,975,000 21,070,000 25,530,000 76,505,000 25,215,000 10,665,000 78,085,000 18,195,000 54,970,000 Received $ 36,555,000 5,232,800,000 25,165,000 44,190,000 30,905,000 8,850,000 334,545,000 43,260,000 25,400,000 39,580,000 19,775,000 501,830,000 Accepted $ 26,555,000 2,895,940,000 5,365,000 19,290,000 13,455,000 8,850,000 83,565,000 17,260,000 18,400,000 30,480,000 8,190,000 173,030,000 U .S . T r e a s u r y ............................... . 270,000 270,000 310,000 310,000 T o tals ................................ $4,521,620,000 F.R. District (and U S . Treasury) B o s t o n ............................................... N e w Y o r k ........................................ P h ila d e lp h ia .................................... C le v e la n d .......................................... R ic h m o n d ......................................... A t la n t a ............................................... C h i c a g o ............................................. St. L o u i s ........................................... M in n e a p o lis .................................... K a n sa s C i t y .................................... D a lla s ................................................. $2,200,325,000c c Includes $371,825,000 noncompetitive tenders from the public. d Includes $155,920,000 noncompetitive tenders from the public. $6,343,165,000 $3,300,690,000d
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