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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No 8 3 8 1 1 July 5, 1978 L J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated April 13, 1978, Due October 12, 1978 (To Be Issued July 13, 1978) $3,400,000,000 of 182-Day Bills, Dated July 13, 1978, Due January 11, 1979 Vnccr/'oro(fd RawA-fOMd T ra^ CotM/wHf-f, and OMfr.! CcMfffMfd, in -S*fccnd F^d^ra/ R ^ jfrr^ DMfWcf.* Following is the text of a notice issued by the Treasury Department, released July 3 : The Department of the Treasury, by this public notice, invites furnished. Others are only permitted to submit tenders for their tenders for two series of Treasury bills totaling approximately own account. $5,700 million, to be issued July 13, 1978. This offering will not Payment for the full par amount of the bills applied for mutt provide new cash for the Treasury as the maturing bills are out accompany all tenders submitted for bills to be maintained on the standing in the amount of $5,712 million. The two series offered book-entry records of the Department of the Treasury. A cath are as follow s: adjustment will be made on all accepted tenders for the difference between the par payment submitted and the actual issue price as 91-day bills (to maturity date) for approximately $2,300 determined in the auction. million, representing an additional amount of bills dated April 13, 1978, and to mature October 12, 1978 (C U S IP N o deposit need accompany tenders from incorporated banks No. 912793 T 71), originally issued in the amount of and trust companies and from responsible and recognized dealers $3,402 million, the additional and original bills to be in investment securities for bills to be maintained on the book-entry freely interchangeable. records of Federal Reserve Banks and Branches, or for bills issued in bearer form, where authorized. A deposit of 2 percent of the par 182-day bills for approximately $3,400 million to be dated amount of the bills applied for must accompany tenders for such July 13, 1978, and to mature January 11, 1979 (C U S IP bills from others, unless an express guaranty of payment by an No. 912793 W 36). incorporated bank or trust company accompanies the tenders. Both series of bills will be issued for cash and in exchange for Public announcement will be made by the Department of the Treasury bills maturing July 13, 1978. Federal Reserve Banks, Treasury of the amount and price range of accepted bids. Competi tor themselves and as agents of foreign and international monetary tive bidders will be advised of the acceptance or rejection of their authorities, presently hold $3,379 million of the maturing bills. tenders. The Secretary of the Treasury expressly reserves the right These accounts may exchange bills they hold for the bills now to accept or reject any or all tenders, in whole or in part, and the being offered at the weighted average prices of accepted competi Secretary's action shall be final. Subject to these reservations, tive tenders. noncompetitive tenders for each issue for $500,000 or less without stated price from any one bidder will be accepted in full at the The bills will be issued on a discount basis under competitive and weighted average price (in three decimals) of accepted competitive noncompetitive bidding, and at maturity their par amount will be bids for the respective issues. payable without interest. Except for definitive bills in the $100,000 Settlement for accepted tenders for bills to be maintained on the denomination, which will be available only to investors who book-entry records of Federal Reserve Banks and Branches, and are able to show that they are required by law or regulation to bills issued in bearer form must be made or completed at the Fed hold securities in physical form, both series of bills will be issued eral Reserve Bank or Branch or at the Bureau of the Public Debt entirely in book-entry form in a minimum amount of $10,000 and on July 13, 1978, in cash or other immediately available funds in any higher $5,000 multiple, on the records either of the Federal or in Treasury bills maturing July 13, 1978. Cash adjustments Reserve Banks and Branches, or of the Department of the Treasury. will be made for differences between the par value of the maturing Tenders will be received at Federal Reserve Banks and Branches bills accepted in exchange and the issue price of the new bills. and at the Bureau of the Public Debt, Washington, D. C. 20226, Under Sections 454(b) and 1221(5) of the Internal Revenue up to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 10, Code of 1954 the amount of discount at which these bills are sold 1978. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 is considered to accrue when the bills are sold, redeemed or other (for 13-week series) should be used to submit tenders for bills to wise disposed of, and the bills are excluded from consideration as be maintained on the book-entry records of the Department of the capital assets. Accordingly, the owner of these bills (other than T reasury. life insurance companies) must include in his or her Federal in come tax return, as ordinary gain or loss, the difference between Each tender must be for a minimum of $10,000. Tenders over the price paid for the bills, whether on original issue or on sub $10,000 must be in multiples of $5,000. In the case of competitive sequent purchase, and the amount actually received either upon sale tenders the price offered must be expressed on the basis of 100, or redemption at maturity during the taxable year for which the with not more than three decimals, e.g., 99.925. Fractions may not return is made. be used. Department of the Treasury Circulars No. 418 (current revi Banking institutions and dealers who make primary markets in sion) and Public Debt Series— Nos. 26-76 and 27-76, and this Government securities and report daily to the Federal Reserve notice, prescribe the terms of these Treasury bills and govern the Batik of New Y ork their positions in and borrowings on such conditions of their issue. Copies of the circulars and tender forms securities may submit tenders for account of customers, if the may be obtained from any Federal Reserve Bank or Branch, or names of the customers and the amount for each customer are 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, M onday, July 10, 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 "T en d er for Treasury B ills." Form s 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. Paynt^af ^or Praayary cannot Ac n :a & Ay rrodff fAroa^A ;Ac Treas ury 7a.r and Loan Account. ^ctf/cw cnt azast Ac wade fn casA or ofAer iwwedi'afcty a^adaA/c j^ands or fn wafarinz? Preasnry AiAs. Results of the last weekly offering of Treasury bills (91-d ay bills ,to be issued July 6, 1978, representing an additional amount of bills dated April 6. 1978, maturing October 5, 1 9 7 8 ; and 182-day bills dated July 6, 1978, maturing January 4, 1979) are shown on the reverse side of this circular. PA U L A . VOLCKER, (OVER) RESULTS OF 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 JU LY 6, 1978) Range of Accepted Competitive Bids pz-Day Trm^Mry Pi7L Afafarfnp October zp/6* PWcf 98.228a 98.213 98.216 High .......................... ................. Low .......................... ................ Average .................... ................ Di-MOMMf z&?-Day Tr^a^ary Ff//^ Afa/nrinp Jannary zpyp Zn&F.yf7MfMf Raff 7.010% 7.069% 7.058% Raff * 7.24% 7.30% 7.29% EWff 96.249 96.232 96.235 Raff 7.420% 7.453% 7.447% /w r f^ fw fttf .Raff i 7.82% 7.85% 7.85% ^ Equivalent coupon-issue yield, a Excepting one tender of $1,745,000. (31 percent of the amount of 91-day bills bid for at the low price was accepted.) (99 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted pz-Day Frm^Mry Pf/L AfadMrfwp Orfa^cr E.R. Dtffricf (and 17.5*. Y'rfa^aryJ B o sto n ................................................ N ew Y o r k ......................................... z&?-Day Fa ^ a r y Ff//^ zp/6* Afat^ann^ January 4 zp/p !, Rfffwfd $ 2 8,650,000 /4fff^ffd Rfffwfd $ 2 8,650,000 $ 59,385,000 $ 29,385,000 3,226,015,000 1,919,765,000 5,031,245,000 2,933,095,000 31,850,000 Philadelphia .................................... 2 4,090,000 2 4 ,090,000 71,900,000 Cleveland ......................................... 4 6 ,815,000 31,815,000 70,585,000 18,575,000 Richmond ......................................... 2 5 ,445,000 25,445,000 40,485,000 26,405,000 Atlanta .............................................. 30,155,000 30,155,000 30,455,000 25,305,000 C h ica g o .............................................. 199,800,000 73,800,000 222,385,000 126,375,000 St. L o u is ........................................... 2 2 ,560,000 16,560,000 69,400,000 4 9,400,000 Minneapolis .................................... 17,990,000 17,990,000 18,205,000 18,205,000 Kansas City .................................... 2 0,295,000 2 0 ,295,000 26,115,000 23,515,000 Dallas ................................................ 19,180,000 17,110,000 18,685,000 12,685,000 99,235,000 6,705,000 San Francisco ............................... 2 77,785,000 85,885,000 285,235,000 U S. Treasury ............................... 9,430,000 9 ,430,000 6,705,000 TOTALS ....................................... $ 3 ,9 4 8,210,000 $2,300,990,000^ b Includes $343,335,000 noncompetitive tenders from the public, c Includes $251,625,000 noncompetitive tenders from the public. $5,950,785,000 $3,400,735,000c
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