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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
["Circular No 8 3 9 7 1

L

August 2, 1978

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 May 11, 1978, Due November 9, 1978
(To Be Issued August 10, 1978)
$3,500,000,000 of 182-Day Bills, Dated August 1 0 ,1 9 7 8 , Due February 8 ,1 9 7 9
To

Lifuf/'Ofaffd FanA-yawd TftMf Com^awif-y, and OfAfry

CoMffrwfd, !M ?A^ -Second

Diy^WcF

Following is the text of a notice issued by the Treasury Department, released yesterday:
The Department of the Treasury, by this pubiic notice, invites
names of the customers and the amount for each customer are
tenders for two series of Treasury bills totaling approximately
furnished. Others are only permitted to submit tenders for their
$5,800 million, to be issued August 10, 1978. / / /inn/ action on ?Ao
own account.
dc6? ceding /cg'ijiatiow Aaj wot &ccw cow/dctcd Ay ^dwpMJt JO, tAo
Payment for the full par amount of the bills applied for must
i^Mc dote o/ tAeye Ai/Af, tAe A:7/j de/wered ow tAat date toid Ae tAo^e
accompany all tenders submitted for bills to be maintained on the
i.MMed ow /id y JJ to Corerwwewt aecoMwty. TAe awetiowj wdt Ae Aeid
book-entry records of the Department of the Treasury. A cash
ay jeAedw/ed awd tAe Ai'F/y wid Aore tAe C6AS7P wwtwAer^ owd dwe
adjustment will be made on all accepted tenders for the difference
dotey j^eei/ied iw FAiy awwoMweewewt. This offering will not provide
between the par payment submitted and the actual issue price as
determined in the auction.
new cash for the Treasury as the maturing bills are outstanding in
N o deposit need accompany tenders from incorporated banks
the amount of $5,808 million. The two series offered are as follow s:
and trust companies and from responsible and recognized dealers
91-day bills (to maturity date) for approximately $2,300
in investment securities for bills to be maintained on the book-entry
million, representing an additional amount of bills dated
records of Federal Reserve Banks and Branches, or for bills issued
May 11, 1978, and to mature November 9, 1978 (C U S IP
in bearer form, where authorized. A deposit of 2 percent of the par
No. 912793 U 38), originally issued in the amount of
amount of the bills applied for must accompany tenders for such
$3,403 million, the additional and original bills to be
bills from others, unless an express guaranty of payment by an
freely interchangeable.
incorporated bank or trust company accompanies the tenders.
182-day bills for approximately $3,500 million to be dated
Public announcement will be made by the Department of the
August 10, 1978, and to mature February 8, 1979
Treasury of the amount and price range of accepted bids. Competi­
(C U S IP No. 912793 W 77).
tive bidders will be advised of the acceptance or rejection of their
tenders. The Secretary of the Treasury expressly reserves the right
Both series of bills will be issued for cash and in exchange for
to accept or reject any or all tenders, in whole or in part, and the
Treasury bills maturing August 10, 1978. Federal Reserve Banks,
Secretary's action shall be final. Subject to these reservations,
for themselves and as agents of foreign and international monetary
noncompetitive tenders for each issue for $500,000 or less without
authorities, presently hold $3,482 million of the maturing bills.
stated price from any one bidder will be accepted in full at the
These accounts may exchange bills they hold for the bills now
weighted average price (in three decimals) of accepted competitive
being offered at the weighted average prices of accepted competi­
bids for the respective issues.
tive tenders.
Settlement for accepted tenders for bills to be maintained on the
The bills will be issued on a discount basis under competitive and
book-entry records of Federal Reserve Banks and Branches, and
noncompetitive bidding, and at maturity their par amount will be
bills issued in bearer form must be made or completed at the Fed­
payable without interest. Except for definitive bills in the $100,000
eral Reserve Bank or Branch or at the Bureau of the Public Debt
denomination, which will be available only to investors who
on August 10, 1978, in cash or other immediately available funds
are able to show that they are required by law or regulation to
or in Treasury bills maturing August 10, 1978. Cash adjustments
hold securities in physical form, both series of bills will be issued
will be made for differences between the par value of the maturing
entirely in book-entry form in a minimum amount of $10,000 and
bills accepted in exchange and the issue price of the new bills.
in any higher $5,000 multiple, on the records either of the Federal
Reserve Banks and Branches, or of the Department of the Treasury.
Under Sections 454(b) and 1221(5) of the Internal Revenue
Tenders will be received at Federal Reserve Banks and Branches
Code of 1954 the amount of discount at which these bills are sold
and at the Bureau of the Public Debt, Washington, D. C. 20226,
is considered to accrue when the bills are sold, redeemed or other­
wise disposed of, and the bills are excluded from consideration as
up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August 7,
capital assets. Accordingly, the owner of these bills (other than
1978. Form PD 4632-2 (for 26-week series) or Form PD 4632-3
life insurance companies) must include in his or her Federal in­
(for 13-week series) should be used to submit tenders for bills to
come tax return, as ordinary gain or loss, the difference between
be maintained on the book-entry records of the Department of the
Treasury.
the price paid for the bills, whether on original issue or on sub­
sequent purchase, and the amount actually received either upon sale
Each tender must be for a minimum of $10,000. Tenders over
or redemption at maturity during the taxable year for which the
$10,000 must be in multiples of $5,000. In the case of competitive
return is made.
tenders the price offered must be expressed on the basis of 100,
Department of the Treasury Circulars No. 418 (current revi­
with not more than three decimals, e.g., 99.925. Fractions may not
sion) and Public Debt Series— Nos. 26-76 and 27-76, and this
be used.
notice, prescribe the terms of these Treasury bills and govern the
Banking institutions and dealers who make primary markets in
conditions of their issue. Copies of the circulars and tender forms
Government securities and report daily to the Federal Reserve
may be obtained from any Federal Reserve Bank or Branch, or
Bank of New York their positions in and borrowings on such
from the Bureau of the Public Debt.
securities may submit tenders for account of customers, if the
This Bank will receive tenders for both series up to 1 :3 0 p.m., Eastern Daylight Saving time, M onday, August 7,
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 tenders and return them in the enclosed envelope marked "T e n ­
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. Payw^nf ^or Tr^a^ary
raMMof
wado ^y orodff FAroa^A
Troa.fury 7a.r and Loan ^rroaaF. .Soff/oMowf wa^F
wado fw rayA or oF/ior fwia^dfaFoFy avada&F^ ^aady or fw waFarfw^
Tr^ajary M /y .
Results of the last weekly offering of Treasury bills (91-day bills to be issued A ugust 3, 1978, representing an
additional amount of bills dated M ay 4, 1978, maturing N ovem ber 2, 1 9 7 8 ; and 182-day bills dated August 3, 1978,
maturing February 1, 1979 ) are shown on the reverse side of this circular.

PAUL A. VoLCKER,
(O V E R )




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 A U G U ST 3, 1978)

Range of Accepted Competitive Bids
p z-D ay Prea-mry Pz7P
A fa ^ r w p
<?, zpy<$

PWr?
H igh

........................................................

98.268 a

Di-yccwM?
Pah?
6 .8 5 2 %

Paf? i
7 .0 7 %

j^ F -D a y Pr^a^Mry P fPj
A f a ^ w p P^^^Mary 7, rpyp

Eric?
96.289

Di-fCOMM?
P a^
7 .3 4 0 %

Pat^

1

7 .7 3 %

Low .................................... .....................

98.253

6 .9 1 1 %

7 .1 3 %

96.273

7 .3 7 2 %

7 .7 6 %

A v e r a g e ............................. .....................

98.257

6 .8 9 5 %

7 .1 2 %

96.278

7 .3 6 2 %

7 .7 5 %

1 Equivalent coupon-issue yield.
^ Excepting three tenders totaling $4,315,000.

(5 7 percent of the amount of 182-day bills
bid for at the low price was accepted.)

<92 percent of the amount of 91-day bills
bid for at the low price was accepted.)

Totai Tenders Received and Accepted

r& ?-Day Pr^a^Mry
M aiarm p Pc^raary 7, r p /p

p r-D ay Pr^a^ary P f/P

P.P. DfytWct (owd I/.P. rr^aJMry)
Boston

..............................................

N ew Y o rk

......................................

$

19,290,000
3,444,280,000

$

19,290,000
1,860,480,000

$

61,000,000
5,130,115,000

$

16,660,000
3,218,405,000

..................................

37,690,000

37,280,000

7 ,385,000

7,385,000

Cleveland .........................................

4 4,260,000

4 3 ,860,000

21,495,000

12,495,000
31,620,000

Philadelphia

.......................................

6 7.295,000

57,215,000

32,620,000

............................................

3 7,230,000

37,190,000

14,575,000

14,575,000

............................................

222,035,000

6 5,195,000

389,660,000

37,860,000

.........................................

4 6,240,000

2 9,240,000

32,935,000

18,935,000

Minneapolis ....................................

14,000,000

13,600,000

15,900,000

15,900,000

Kansas City ....................................

35,260,000

35,260,000

12,400,000

12,400,000

18,720,000

17,640,000

8 , 100,000

7,100,000

...............................

262.925,000

7 6,725,000

277,205,000

97,905,000

U .S . Treasury ...............................

8,450,000

8,450,000

10,685,000

10,685,000

TOTALS .......................................

$ 4 ,2 5 7,675,000

Richmond
Atlanta
Chicago
St. Louis

Dallas .................................................
San Francisco

$2,301,425,000^

b Includes $344,325,000 noncompetitive tenders from the public,
c Includes $182,130,000 noncompetitive tenders from the public.




$6,014,075,000

$ 3 ,5 01,925,000'