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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 E W YORK Fiscal Agent of the United States r Circular No. 8 3 7 0 1 L June 14, 1978 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,200,000,000 of 91-Day Bills, Additional Amount, Series Dated March 23, 1978, Due September 21, 1978 (To Be Issued June 22, 1978) $3,400,000,000 of 182-Day Bills, Dated June 22, 1978, Due December 21, 1978 T o A l l In c o r p o ra te d B a n k s an d T r u s t C om pan ies, an d O th e rs C o n cern ed , in the S e c o n d F e d e r a l R e s e r v e D is tr ic t: Following is the text of a notice issued by the Treasury Department, released yesterday: T h e D ep artm en t of the T re a su ry , by this public notice, invites tenders fo r tw o series of T re a su ry bills to ta lin g ap pro xim ately $5,600 m illion, to be issued June 22, 1978. T h is offering w ill re su lt in a pay-dow n fo r the T re a su ry of about $6,010 m illion as the m atu rin g bills a re o u tstan d in g in the am ount of $11,610 m illion ($6,005 m illion of w hich represents 20-day bills issued June 2, 1978). T he tw o series offered are as follow s: 91-day bills (to m atu rity d a te ) fo r appro x im ately $2,200 m illion, re p re se n tin g an additional am ount of bills dated M a rch 23, 1978, and to m atu re Septem ber 21, 1978 ( C U S I P N o. 912793 T 4 8 ), o riginally issued in the am ount of $3,402 m illion, the additional and original bills to be freely interchangeable. 182-day bills fo r app ro x im ately $3,400 m illion to be dated Ju n e 22, 1978, and to m atu re D ecem ber 21, 1978 ( C U S I P N o. 912793 U 9 5 ). B o th series of bills will be issued for cash and in exchange fo r T re a su ry bills m atu rin g Ju n e 22, 1978. F ed eral R eserve Banks, for them selves and as ag en ts of foreign and intern atio n al m onetary au thorities, p resently hold $3,597 m illion of the m atu rin g bills. T hese accounts m ay exchange bills they hold fo r the bills now being offered a t the w eighted average prices of accepted com peti tive tenders. T h e bills will be issued on a discount basis under com petitive and noncom petitive bidding, and a t m atu rity th eir p a r am ount will be payable w ithout in terest. E x c e p t fo r definitive bills in the $100,000 denom ination, w hich w ill be available only to investors w ho a re able to show th a t they are required by law o r reg u latio n to hold securities in physical form , both series of bills w ill be issued en tirely in bo o k -en try fo rm in a m inim um am ount of $10,000 and in any h igher $5,000 m ultiple, on the records e ith e r of the F ed eral R eserve B anks and B ranches, o r of the D e p artm en t of the T rea su ry . T en d e rs w ill be received a t F e d e ral R eserve B anks and B ranches and a t the B ureau of the P ublic D ebt, W ashington, D. C. 20226, up to 1 :30 p.m., E a s te rn D ay lig h t S aving time, M onday, Ju n e 19, 1978. F o rm P D 4632-2 (fo r 26-w eek series) or F o rm P D 4632-3 (fo r 13-week series) should be used to subm it tenders fo r bills to be m aintained on the b o ok-entry records of the D e p artm en t of the T reasury. E a c h tender m ust be fo r a m inim um of $10,000. T en d ers over $10,000 m ust be in m ultiples of $5,000. In the case of com petitive tenders the price offered m ust be expressed on the basis of 100, w ith not m ore th an th ree decim als, e.g., 99.925. F ra c tio n s m ay not be used. B a n k in g institutions and dealers w ho m ake prim ary m ark e ts in G overnm ent securities and re p o rt daily to the F ed eral R eserve B ank of N ew Y o rk th e ir positions in and bo rro w in g s on such securities m ay subm it tenders fo r account of custom ers, if the nam es of the custom ers and the am ount fo r each custom er are furnished. O th e rs are only p erm itted to subm it tenders fo r their ow n account. P aym ent fo r the full p a r am ount of the bills applied for m ust accom pany all tenders subm itted fo r bills to be m aintained on the book-entry records of the D ep artm en t of the T rea su ry . A cash a d ju stm e n t w ill be m ade on all accepted tenders fo r the difference betw een the p a r paym ent subm itted and the actual issue price as determ ined in the auction. N o deposit need accom pany tenders from incorporated banks and tru s t com panies and from responsible and recognized dealers in investm ent securities fo r bills to be m aintained on the book-entry records of F ed eral R eserve B anks and B ranches, o r for bills issued in b e are r form , w here authorized. A deposit of 2 percent of the par am ount of the bills applied fo r m ust accom pany tenders fo r such bills fro m others, unless an ex p ress g u a ran ty of paym ent by an incorporated bank o r tru s t com pany accom panies the tenders. P ublic announcem ent will be m ade by the D ep artm en t of the T re a su ry of the am ount and price range of accepted bids. C om peti tive bidders will be advised of the acceptance o r rejection of their tenders. T he S e c retary of the T re a su ry e xpressly reserves the rig h t to accept o r re je c t any o r all tenders, in w hole o r in part, and the S e c re ta ry ’s action shall be final. S u b ject to these reservations, noncom petitive tenders for each issue fo r $500,000 o r less w ithout stated price from any one bidder w ill be accepted in full a t the w eighted average price (in th ree decim als) of accepted com petitive bids for the respective issues. S ettlem ent fo r accepted tenders for bills to be m aintained on the book-entry records of F ed eral R eserve B anks and B ranches, and bills issued in b e are r form m ust be m ade o r com pleted a t the F e d e ral R eserve B ank o r B ran ch o r a t the B ureau of the P ublic D ebt on Ju n e 22, 1978, in cash o r o th er im m ediately available funds or in T re a su ry bills m atu rin g June 22, 1978. C ash adjustm ents will be m ade for differences betw een the p a r value of the m atu rin g bills accepted in exchange and the issue price of the new bills. U n d er Sections 4 5 4 (b ) and 1221(5) of the In tern a l Revenue Code of 1954 the am ount of discount a t w hich these bills a re sold is considered to accrue w hen the bills are sold, redeem ed o r o th e r wise disposed of, and the bills are excluded from consideration as capital assets. A ccordingly, the ow ner of these bills (o th e r than life insurance com panies) m ust include in his or her F ed eral in come ta x re tu rn , as o rd in ary gain o r loss, the difference betw een the price paid fo r the bills, w h eth er on original issue or on sub sequent purchase, and the am ount actually received eith er upon sale o r redem ption a t m atu rity d u rin g the taxable y e ar for w hich the re tu rn is made. D ep artm en t of the T re a su ry C ircu lars N o. 418 (c u rre n t revi sion) and P ublic D ebt S eries— N os. 26-76 and 27-76, and this notice, prescribe the term s of these T re a su ry bills and govern the conditions of th eir issue. Copies of the c irc u la rs and tender form s m ay be obtained from any F ed eral R eserve B ank o r B ranch, or from the B ureau of the P ublic Debt. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 19, 1978, 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 the 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 bills cannot be made by credit through the Treas ury 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 June 15, 1978, representing an additional amount of bills dated March 16, 1978, maturing September 14, 1978; and 182-day bills dated June 15, 1978, maturing December 14, 1978) are shown on the reverse side of this circular. P aul A. V olcker, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 15, 1978) Range of Accepted Competitive Bids p i -Day Treasury Bills Maturing September 14, i p High ............ ...... Low ............ ...... Average ......... ...... 182-Day Treasury Bills Maturing December 14, i p j8 j8 P r ic e D isc o u n t R a te In v e stm e n t R a te 1 P r ic e D isc o u n t R a te In v e stm e n t R a te 1 98.330 98.326 98.327 6.607% 6.622% 6.618% 6.81% 6.83% 6.82% 96.403 96.399 96.400 7.115% 7.123% 7.121% 7.48% 7.49% 7.49% 1 Equivalent coupon-issue yield. (60 percent of the amount of 182-day bills bid for at the low price was accepted.) (19 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted pi-Day Treasury Bills Maturing September 14, i p y 8 F .R . D is tr ic t (a n d U S . T r e a s u r y ) R e c e iv e d A c c e p te d 182-Day Treasury Bills Maturing December 14, i p y 8 R e c e iv e d Accepted $ 29,040,000 3,849,420,000 18,705,000 53,345,000 25,600,000 27,805,000 368,645,000 48,765,000 30,505,000 33,630,000 12,770,000 226,410,000 $ 18,960,000 2,022,650,000 18,690,000 28,435,000 17,490,000 27,685,000 44,545,000 21,765,000 11,645,000 . 31,305,000 12,770,000 40,110,000 $ 9,155,000 5,076,590,000 7,390,000 55,955,000 23,670,000 20,125,000 599,770,000 45,400,000 26,895,000 17,055,000 10,395,000 616,440,000 $ 9,155,000 2,743,390,000 7,390,000 15,960,000 9,670,000 19,565,000 123,070,000 11,400,000 14,695,000 16,685,000 9,895,000 420,115,000 U.S. Treasurv .......... 7,965,000 7,965,000 5,760,000 5,760,000 T otals ............ $4,732,605,000 Boston................ New York.............. Philadelphia ............ Cleveland .............. Richmond .............. Atlanta ............... Chicago............... St. Louis............... Minneapolis ............ Kansas City ............ Dallas ................ San Francisco .......... $2,304,015,000a a Includes $348,520,000 noncom petitive tenders from the public, b Includes $199,670,000 noncom petitive tenders from the public. $6,514,600,000 $3,406,750,000b
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