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FEDER AL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
Circular No. 8349
May 18, 1978 •J
TREASURY TO AUCTION $2,390 MILLION OF 2-YEAR NOTES
To A ll 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 $2,390 million of 2-year notes to refund the same amount of
notes maturing May 31, 1978. The $2,390 million of maturing notes are those held by the public, including $439
million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities.
In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own
accounts, hold $177 million of the maturing securities that may be refunded by issuing additional amounts of
the new notes at the average price of accepted competitive tenders. Additional amounts of the new securities
may also be issued at the average price, for new cash only, to Federal Reserve Banks as agents for foreign and
international monetary authorities.
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 directed to our Government Bond Division (Tel. No.
212-791-6356).
This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, May 23, 1978,
at the Securities Department of its Head Office and at its Buffalo Branch; provided, however, that
noncompetitive tenders will be considered timely received if they are mailed to this Bank or its Branch
under a postmark no later than May 22. Enclosed is a copy of the form to be used in submitting tenders. If
there is any doubt that tenders sent by mail will reach this Bank or its Branch on time, bidders should use
other means of transmitting their tenders.
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.
As provided in the official offering circular, “in every case where full payment is not completed on
time, the deposit submitted with the tender, up to 5 percent of the face amount of securities allotted, shall,
at the discretion of the Secretary of the Treasury, be forfeited to the United States.”
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, at the Buffalo Branch,
Tel. No. 716-849-5016. (If the inquiry relates to competitive tenders, however, the Head Office number to
call is 212-791-5465.)
PAUL A. VOLCKER,
P residen t.
(Over)
HIGHLIGHTS OF TREASURY
OFFERING TO THE PUBLIC
OF 2-YEAR NOTES
TO BE ISSUED MAY 31,1978
(Delivery date fo r coupon securities is June 5, 1978)
Amount Offered:
To the public.............
$2,390 million
Description of Security:
Term and type of security....
2-year notes
Series and CUSIP designation ..
Series P-1980
(CUSIP No. 912827 HT2)
Maturity date............
May 31, 1980
Call date................
No provision
Interest coupon rate........
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......
November 30 and May 31
Minimum denomination available
$5,000
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% of face amount
Deposit guarantee by designated institutions..............
Acceptable
Key Dates:
Deadline for receipt of tenders........................
Settlement date (final payment due)
a) Cash or Federal funds..........................
Tuesday, May 23, 1978
by 1:30 p.m., EDST
Wednesday, May 31, 1978
b) Check drawn on bank within FRB district where submitted
Friday, May 26, 1978
c) Check drawn on bank outside FRB district where submitted
Friday, May 26, 1978
Delivery date for coupon securities......................
Monday, June 5, 1978
UNITED STATES OF AMERICA
TREASURY NOTES OF MAY 3 1 ,
1980
S E R IE S P - 1 9 8 0
DEPARTMENT CIRCULAR
Public Debt Series - No. 12-78
1.
1.
1.
DEPARTMENT OF THE TREASURY,
OFFICE OF THE SECRETARY,
Washington, May 18, 1978.
INVITATION FOR TENDERS
The Secretary of the Treasury, under the authority
of the Second Liberty Bond Act, as amended, invites tenders for
approximately $2,390,000,000 of United States securities,
designated Treasury Notes of May 31, 1980, Series P-1980 (CUSIP
No. 912827 HT 2).
The securities will be sold 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 to
Government accounts and Federal Reserve Banks for their own
account in exchange for maturing Treasury securities.
Additional
amounts may also 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 May 31, 1978, and will
bear interest from that date, payable on a semiannual basis on
November 30, 1978, and each subsequent 6 months on May 31 and
November 30, until the principal becomes payable.
They will
mature May 31, 1980, 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-
2. 3. The securities will be acceptable to secure deposits
of public monies. They will not be acceptable in payment of
taxes.
2.
4.
Bearer securities with interest coupons attached,
and securities registered as to principal and interest, will be
issued in denominations of $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 different 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.
SALE PROCEDURES
3. 1. 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, May 23, 1978.
Noncompetitive tenders as defined below
will be considered timely if postmarked no later than Monday,
May 22, 1978.
3. 2. Each tender must state the face amount of securities
bid for. The minimum bid is $5,000 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 used.
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.
All bidders must certify that they have not made and
will not make any agreements for the sale or purchase of any
securities of this issue prior to the deadline established in
Section 3.1. for receipt of tenders.
Those authorized to submit
tenders for the account of customers will be required to certify
-3-
that such tenders are submitted under the same conditions, agree
ments, and certifications as tenders submitted directly by
bidders for their own account.
3. 4. 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.
Others are only permitted to submit tenders for their
own account.
3. 5. 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 deposit 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. 6. 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, and
then competitive tenders will be accepted, starting with those at
the lowest yields, through successively higher yields 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 99.500.
That rate of interest will be
-4 -
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. Those submitting
noncompetitive tenders will pay the price equivalent to the
weighted average yield of accepted competitive tenders. 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 determination of the yield.
Tenders
received from Government accounts and Federal Reserve Banks will
be accepted at the price equivalent to the weighted average yield
of accepted competitive tenders.
3.
7.
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. RESERVATIONS
4. 1. 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
f inal
5.
PAYMENT AND DELIVERY
5. 1. Settlement for allotted securities must be made or
completed on or before Wednesday, May 31, 1978, 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
-5-
tender was submitted, which must be received at such institution no
later than:
(a) Friday, May 26, 1978, 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, May 26, 1978, if the check is drawn on a
bank in another Federal Reserve District.
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. When 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.
5. 2. In every case where full payment is not completed
on time, the deposit submitted with the tender, up to 5 percent
of the face amount of securities allotted, shall, at the
discretion of the Secretary of the Treasury, be forfeited to the
United States.
5. 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.
When 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 "The 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
-6 -
delivered to (name and address)." Specific instructions for the
issuance and delivery of the 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.
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 definitive 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. 20226.
The interim certificates must be
returned at the risk and expense of the holder.
5.
5.
Delivery of securities in registered form will be
made after the requested form of registration has been validated,
the registered interest account has been established, and the
securities have been inscribed.
6.
6.
1.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal
Reserve Banks are authorized and requested to receive tenders, to
make allotments as directed by the Secretary of the Treasury, to
issue such notices as may be necessary, to receive payment for
and make delivery of securities on full-paid allotments, and to
issue interim certificates pending delivery of the definitive
securities.
6.
2.
The Secretary of the Treasury may at any time issue
supplemental or amendatory rules and regulations governing the
offering.
provided.
Public announcement of such changes will be promptly
Paul H. Taylor,
Acting Fiscal Assistant Secretary.
Form NA
IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Tuesday, May 23, 1978
TENDER FOR TREASURY NOTES OF SERIES P-1980
PRIVACY ACT STATEMENT^=The individually identifiable information required on this form is necessary to permit t^^ubscription to be processed and the securities to be issued. If registered securities
are requested, the regulations governing United States securities (Department Circular No. 300) and the offering circular require submission of social security numbers; the numbers and other information are used
in inscribing the securities and establishing and servicing the ownership and interest records. The transaction will not be completed unless all required data is furnished.
Dated May 31, 1978
Due May 31, 1980
FEDERAL RESERVE BANK OF NEW YORK.
Fiscal Agent of the United States,
New York. N.Y. 10045
Dated at......................
........................ . 19 ..
The undersigned hereby offers to purchase the above-described securities in the amount indicated below, and
agrees to make payment therefor at your Bank on or before the issue date at the price awarded on this tender.
Do not fill in both Competitive and
Noncompetitive tenders on one form
COMPETITIVE TENDER
$ ........................ (maturity value)
or any lesser amount that may be awarded.
Yield:...
NONCOMPETITIVE TENDER
$ ........................ (maturity value)
(Not to exceed $1,000,000for one bidder through all sources)
at the average price of accepted competitive bids.
(Yield must be expressed with not more than two
decimal places, for example, 7.11)
Subject to allotment, please issue, deliver, and accept payment for the securities as indicated below and
on the reverse side {if registered securities are desired, please also complete schedule on reverse side):
Pieces
Denomination
XXX
xxxxxx
$
Maturity value
XXX
XXX
5,000
10,000
100,000
XXX
□ Deliver over the counter to the
undersigned (1)
□ Ship to the undersigned (2)
□ Hold in safekeeping (for member
bank only) in —
□ Investment Account (4)
□ General Account (5)
□ Trust Account (6)
□ Hold as collateral for Treasury Tax and
Loan Account* (7)
Payment will be made as follows:
j By charge to our reserve account (D)
By cash or check in immediately
available funds (F)
] By surrender of maturing securities (E)
1By charge to my correspondent
bank................................................ (D)
(Name of bank)
□ Special instructions (3)
1,000,000
□ Wire to
Totals
. ( 8)
(Exact Receiving Bank Wire Address/Account)
* The undersigned certifies that the allotted securities will be owned solely by the undersigned.
(If a commercial bank or dealer is subscribing for its own account or for account of customers, the following
certifications are made a part of this tender.)
W E H E REBY CERTIFY that we have not made and will not make any agreements forthe sale or purchase of
any securities of this issue prior to the closing time for receipt of this tender.
W E F U R THER CERTIFY that we have received tenders from customers in the amounts set forth opposite their
names on the listwhich ismade a part of this tender, and that we have received and are holding for the Treasury, or
that we guarantee payment to the Treasury, of the deposits stipulated in the official offering circular.
W E FU R T H E R CERTIFY that tenders received by us, ifany, from other commercial banks or primary dealers for
their own account, and for the account of their customers, have been entered with us under the same conditions,
agreements, and certificationsset forth in this form.
(Name of subscriber — please print or type)
Insert this tender in
special envelope marked
“ Tender fo r Treasury
Notes or B onds”
(Address — incl. City and State)
(Tel. No.)
(Signature of subscriber or authorized signature)
(Title of authorized signer)
(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)
(Name of customer)
(Name of customer)
INSTRUCTIONS:
1. No tender for less than $5,000 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 yield 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. Tenders will be received without deposit from commercial and other banks for their own account, tederally-insured savings and
loan associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds,
international organizations in which the United States holds membership, foreign central banks and foreign States, dealers who make
primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to
Government securities and borrowings thereon, and Government accounts. Tenders from others must be accompanied by payment of 5
percent of the face amount of the securities applied for.
4. Payment must be completed by May 31, 1978. If payment is by check drawn on a bank in this District, it must be received by
May 26, 1978; checks drawn on a bank in another District must also be received by May 26, 1978.. All checks must be drawn to the order
of the Federal Reserve Bank of New York; checks endorsed to this Bank will not be accepted.
5. If the language of this tender is changed in any respect that, in the opinion of the Secretary of the Treasury, is material, the tender
may be disregarded.
[Enc. Cir. No. 8349]
(OVER)
SCHEDULE FOR ISSUE OF REGISTERED TREASURY NOTES OF SERIES P-1980
SUBSCRIPTION NO
DELIVERY INSTRUCTIONS
PAYMENT INSTRUCTIONS
SU B S C Rl B E R _
□
DELIVER OVER THE COUNTER
□
SIGNATURE _
□
s h ip
A D D R E S S ____
□ OTHER INSTRUCTIONS:
TO SUBSCRIBER
Z IP
REGISTRATION
NO. OF
PIECES
INSTRUCTIONS
DENOM.
AMOUNT
SERIAL NOS.
(LEAVE BLANK)
BY CHARGE TO OUR
RESERVE ACCOUNT
□ BY CASH OR CHECK IN
IMMEDIATELY AVAILABLE FUNDS
□ BY SURRENDER OF
MATURING SECURITIES
□ BY CHARGE TO MY
CORRESPONDENT BANK
FO R F R B USE O N LY
TRANS. A C C O U N TIN G DATE
IS S U E A G E N T
12 LOAN CODE
MAY 31, 1978
INTEREST
COMP.
DATE
F O R F R B USE O N L Y
NAME(S)
32
ID O R S . S .
5,000
34
10,000
38
100,000
42
1,000,000
99
TOTAL
NO.
ADDRESS
ZIP
T R . CASE HO.
NAME(S)
32
5 , 000
34
1 0 , 000
38
100,000
4?
1, 000,000
99
TOTAL
ID O R S . S . N O.
ADDRESS
ZIP
T R . CASE NO.
NAME(S)
32
5,000
34
10,000
38
100,000
42
1,000,000
99
TOTAL
ID O R S . S . NO.
ADDRESS
ZIP
T R . CASE NO.
N AME(S)
32
ID O R S . S . N O .
ADDRESS
ZIP
5,000
34
10,000
38
100,000
42
1,000,000
99
TOTAL
TR . CASE NO.
NAMEjS)
32
5, 000
34
10,000
38
100,000
42
1,000,000
99
TOTAL
ID O R S . S. N O.
ADDRESS
ZIP
TR . CASE NO.
110-01
@FedFRASER