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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t of the United States r Circular No 83951 L July 26, 1978 J OFFERING OF T W O SERIES OF TR E A SU R Y BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated May 4, 1978, Due November 2, 1978 (To Be Issued August 3, 1978) $3,500,000,000 of 182-Day Bills, Dated August 3, 1978, Due February 1, 1979 To Liccr/waffd Concerned, w Traj? and Ycco??d Federal Fejerre Dtjfrief .* Following is the text of a notice issued by the Treasury Department, released yesterday: furnished. Others are only permitted to submit tenders for their own account. 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. 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 Public announcement will be made by the Department of the Treasury bills maturing August 3, 1978. Federal Reserve Banks, Treasury of the amount and price range of accepted bids. Competi for themselves and as agents of foreign and international monetary tive bidders will be advised of the acceptance or rejection of their authorities, presently hold $3,502 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 stateS 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 August 3, 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 August 3, 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 uo to 1 :30 p.m., Eastern Daylight Saving time, Monday, July 31, 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 Treasury. 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 oEered 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 Bank of New York 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, Monday, July 31, 1978, at the Securities Department of its H ead Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tende rs and return them in the enclosed envelope marked "T en der 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. Payn?c??f jnr Treasury &?//.? cannot made &y crcJff t/irony/? f/ia T raajMry TaA* and Loan ^rcon nf. 6'eff/e?nenf ntMjf wade ?n ca.?/i or of/?or ??nn?cd?afc/y a??a?/a&/a )??ndv or ?n ?nafnr?n?/ Trea^??ry 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 August 3, 1978. This oifering will not provide new cash for the Treasury as the maturing bills are out standing in the amount of $5,808 million. The two series offered are as follow s: 91-day bills (to maturity date) for approximately $2,300 million, representing an additional amount of bills dated May 4, 1978, and to mature November 2, 1978 (C U S IP No. 912793 U 20), originally issued in the amount of $3,504 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,500 million to be dated August 3, 1978, and to mature February 1, 1979 (C U S IP No. 912793 W 69). Results of the last weekly offering of Treasury bills (91-d ay bills to be issued fuly 27, 1978, representing an additional amount of bills dated April 27, 1978, maturing October 26, 1978 ; and 182-day bills dated July 27, 1978, maturing January 25, 1979) are shown on the reverse side of this circular. PAUL A . VOLCKER, (OVER) RESULTS OF LA ST W E E K L Y OFFERIN G OF T R E A SU R Y BILLS (T W O SERIES TO BE ISSUED JU LY 27, 1978) Range of Accepted Competitive Bids p z-D ay Tr^a.fMT'y A/afar/wp <?6 . zpy^* H igh ........................................................ Low .......................................................... A v e r a g e ................................................... PWcc 98.255 98.241 98.247 z ^ - D a y Trfa^ary Ft//^ MaO/rmp /am zary 2 ^, zpyp ZnCejtWfMt Pate 1 7.12% 7.18% 7.16% Di-fCCMM? Pate 6.903% 6.959% 6.935% PWee 96.260 96.237 96.246 DtjCOMMt Pate 7.398% 7.443% 7.425% Pate 1 7.79% 7.84% 7.82% t Equivalent coupon-issue yield. (21 percent of the amount of 182-day bills (1 6 percent of the amount of 91-day bills bid for at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Received and Accepted p z-D ay Tz-^a^ary P i/lf Afafariap October ^d, zp/<$ Pereired P.P. D/^tnet (and C.P. Preajary) B o sto n ................................................ New Y o r k ......................................... $ 21,445,000 3 ,134,720,000 z&?-Day Trca^ary F f //j Afatarmp /awaary z p /p /deee^ted $ 2 1.445,000 1,893,720,000 Accepted Pecewed $ 9,560,000 4,582,030,000 $ 9 ,560,000 3,163,775,000 Philadelphia .................................... 18,765,000 18,765,000 7.930,000 7,930,000 Cleveland ......................................... 25,635,000 23,245,000 30,750,000 30,750,000 Richmond ......................................... 39,385,000 16,385,000 15,505,000 13,505,000 Atlanta .............................................. 33,545,000 30,845,000 19,885,000 16.085,000 C h ica g o .............................................. 304,390,000 148,390,000 266,195,000 64,195,000 St. L o u is ........................................... 31,460,000 18,460,000 27,880.000 9,880,000 21,390,000 21,460,000 Minneapolis .................................... 22,445,000 22,445,000 21,390,000 Kansas City .................................... 21,510,000 21,500,000 22,250,000 7,555,000 16,400,000 16,400,000 7,555,000 ............................... 259,845.000 59,845,000 266,740,000 123,840,000 U .S . T r e a s u r y ............................... 9,780,000 9 ,780,000 10,095,000 10,095,000 TOTALS .................................... $ 3 ,9 3 9,325,000 Dallas ................................................. San Francisco $2,301,225,0003 ^ Includes $349,520,000 noncompetitive tenders from the public, b Includes $209,285,000 noncompetitive tenders from the public. $5,287,765,000 $ 3 ,500,020,000b
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