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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No 8 4 1 0 1 L August 23, 1978 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated June 1, 1978, Due November 30, 1978 (To Be Issued August 31, 1978) $3,400,000,000 of 182-Day Bills, Dated August 31, 1978, Due March 1, 1979 To zi/J /Mcor/waffd CowcffnfJ, in Truyf Ccwi/'amf.f, and OM ffj JfcoMc? Ff&ral Rf-fftw Dtyfncf.' 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 91-day bills (to maturity date) for approximately $2,300 determined in the auction. million, representing an additional amount of bills dated No deposit need accompany tenders from incorporated banks June 1, 1978, and to mature November 30, 1978 (C U SIP and trust companies and from responsible and recognized dealers No. 912793 U61), originally issued in the amount of in investment securities for bills to be maintained on the book-entry $3,406 million, the additional and original bills to be records of Federal Reserve Banks and Branches, or for bills issued freely interchangeable. 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 August 31, 1978, and to mature March 1, 1979 (C U S IP bills from others, unless an express guaranty of payment by an No. 912793 X 27). incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department of the Both series of bills will be issued for cash and in exchange for Treasury of the amount and price range of accepted bids. Competi Treasury bills maturing August 31, 1978. Federal Reserve Banks, tive bidders will be advised of the acceptance or rejection of their for themselves and as agents of foreign and international monetary tenders. The Secretary of the Treasury expressly reserves the right authorities, presently hold $3,281 million of the maturing bills. to accept or reject any or all tenders, in whole or in part, and the These accounts may exchange bills they hold for the bills now Secretary's action shall be Anal. Subject to these reservations, being offered at the weighted average prices of accepted competi noncompetitive tenders for each issue for $500,000 or less without tive tenders. 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 August 31, 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 31, 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 bills accepted in exchange and the issue price of the new bills. Tenders will be received at Federal Reserve Banks and Branches 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, August 28, 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 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 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 :3 0 p.m ., Eastern Daylight Saving time, M onday, A u gu st 28, 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." 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. PayMtow; jor TreajMry caMMO? wad^ &y credit f/troH^/i f/n? 7r<?ayary T&v anG? LoaM wtad^ in cayA or otAor iw ?M fdia^y a^af/aA/o jiiMdy or fw wafarwu? Tr^ayary M fy. The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $5,700 million, to be issued August 31, 1978. This offering will not provide new cash for the Treasury as the maturing bills are out standing in the amount of $5,714 million. The two series offered are as follow s: Results of the last weekly offering of Treasury bills (9 2-d ay bills to be issued A ugust 24, 1978, representing an additional amount of bills dated M ay 25, 1978, maturing Novem ber 24, 197 8 ; and 182-day bills dated A ugust 24, 1978 maturing February 22, 1979) are shown on the reverse side of this circular. PAUL A. VoLCKER, (O V E R ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 24, 1978) Range of Accepted Competitive Bids pp-Day BrfaAMry Bt7L MafMWytp zpy^ z&p-Day BrfaAMry Bf//A dfafanM^ B^ArMary z p /p ZXffOMMf R a ff 7 .4 4 9 % 7nVfAfyMfMf Raff t 7 .8 5 % 9 8 .1 5 1 " DfACCMMf R aff 7 .2 3 5 % /wt/fAfwfytf R aff * 7 .4 7 % Low .......................................................... 98.138 7 .2 8 6 % 7 .5 3 % 96.218 7 .4 8 1 % 7 .8 8 % A v e r a g e ................................................... 98.143 7 .2 6 7 % 7 .5 1 % 96.223 7 .4 7 1 % 7 .8 7 % PW ff H igh ........................................................ PWcf 96.234^ b Excepting one tender of $250,000. 1 Equivalent coupon-issue yield, a Excepting one tender of $1,000,000. (4 6 percent of the amount of 182-day bills bid for at the low price was accepted.) (61 percent of the amount of 92-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted r&?-Day By*faAMry Bff/A Afa^Mn'yyp B ^ r a a r y zpyp pp-Day ByraAMry Bf^y Afa^Mrwp AtwpyM&py* <?.%, ipy# R.R. DtAfWcf Boston ............................................. N ew Y o rk ..................................... $ 3 4,160,000 3,331,415,000 $ 34,160,000 1,951,565,000 ^4fCf^ffd Rfffwfd ^fff^ffd RfCfWfd f/.R. BrfaAMry7 $ 3 6,000,000 5,316,120,000 $ 11,000,000 3,155,320,000 ................................ 19.430.000 19.430.000 8,260 ,0 0 0 8,260,000 Cleveland ........................................ 30.540.000 2 8 .590.000 27.640.000 12.640.000 20.955.000 Philadelphia ..................................... 2 4.525.000 2 4.135.000 22.955.000 .......................................... 24.700.000 2 4.700.000 16.150.000 14.150.000 .......................................... 2 33.585.000 78.585.000 224.970.000 34.470.000 ........................................ 4 1.225.000 31.225.000 29.440.000 11.440.000 19.425.000 17.635.000 13.635.000 2 2.715.000 16.230.000 16.230.000 10.185.000 Richmond Atlanta Chicago St. Louis Minneapolis ................................... Kansas City .................................. 19.425.000 2 2.715.000 11.610.000 11.610.000 10.185.000 167.755.000 4 7 ,755,000 2 0 9 .480.000 84.480.000 U .S . Treasury .............................. 6,545 ,0 0 0 6,545 ,0 0 0 7 .995.000 7 .995.000 TOTALS ....................................... $3,967 ,6 3 0 ,0 0 0 Dallas ............................................... San Francisco ............................. $ 2 ,3 0 0 ,4 4 0 ,0 0 0 ' c Includes $331,945,000 noncompetitive tenders from the public. 4 Includes $186,575,000 noncompetitive tenders from the public. $ 5 ,943,060,000 $3,400,760,000<*
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