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FE D E R A L R ESER VE B A N K O F N EW YORK Fiscal Agent of the United States OFFERING OF TWO SERIES OF TREASURY BILLS [ Circular No. 8 41 9 1 September 13, 1978 J $2,200,000,000 of 91-Day Bills, Additional Amount, Series Dated June 22, 1978, Due December 21, 1978 (To Be Issued September 21, 1978) S 3 , 400,000,000 of 182-Day Bills, Dated September 21, 1978, Due March 22, 1979 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: 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. No 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. 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 September 21, 1978. bederal Reserve tive bidders will be advised of the acceptance or rejection of their Banks, for themselves and as agents of foreign and international tenders. The Secretary of the Treasury expressly reserves the right monetary authorities, presently hold $3,320 million of the maturing to accept or reject any or all tenders, in whole or in part, and the bills. These accounts may exchange bills they hold for the bills now Secretary’s action shall be final. 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 weighted average price (in three decimals) of accepted competitive The bills will be issued on a discount basis under competitive and bids for the respective issues. noncompetitive bidding, and at maturity their par amount will be 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 September 21, 1978, in cash or other immediately available funds m any higher $5,000 multiple, on the records either of the Federal or in Treasury bills maturing September 21, 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 Under Sections 454(b) and 1221(5) of the Internal Revenue and at the Bureau of the Public Debt, Washington, D. C. 20226, Code of 1954 the amount of discount at which these bills are sold up to 1 :30 p.m., Eastern Daylight Saving time, Monday, September is considered to accrue when the bills are sold, redeemed or other 18. 1978. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 wise disposed of, and the bills are excluded from consideration as ( for 13-week series) should be used to submit tenders for bills to capital assets. Accordingly, the owner of these bills (other than be maintained on the book-entry records of the Department of the life insurance companies) must include in his or her Federal in Treasury. 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 ot 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 sion) and Public Debt Series—Nos. 26-76 and 27-76, and this Banking institutions and dealers who make primary markets in notice, prescribe the terms of these Treasury bills and govern the Government securities and report daily to the Federal Reserve conditions of their issue. Copies of the circulars and tender forms Bank of New York their positions in and borrowings on such may be obtained from any Federal Reserve Bank or Branch, or securities may submit tenders for account of customers, if the ____ __ from the Bureau of the Public Debt. 'lucis and «uiu the Luc ol, names of the customers amount for each customer are The Department of the Treasury, by this public notice, invites tenders tor two series of Treasury bills totaling approximately $5,600 million, to be issued September 21, 1978. This offering will not provide new cash for the Treasury as the maturing bills are outstanding in the amount of $5,605 million. The two series offered are as follows: 91-day bills (to maturity date) for approximately $2,200 million, representing an additional amount of bills dated June 22, 1978, and to mature December 21, 1978 (C U SIP No. 912793 U95), originally issued in the amount of $3,404 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,400 million to be dated September 21, 1978, and to mature March 22, 1979 (C U S IP No. 912793 X50). This Bank wTll*receive"tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, September is, 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 Ten der 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 matunng Treasury bills. . . . , _ , , . irV70 Results of the last weekly offering of Treasury bills (91-day bills to be issued September 14, 1978, representing an additional amount of bills dated June 15, 1978, maturing December 14, 1978; and 182-day bills dated September 14, 1978. maturing March 15, 1979) are shown on the reverse side of this circular. P a u l A. V o l c k e r , President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEM BER 14, 1978) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing March 15, 1979 91-Day Treasury Bills Maturing December 14, 1978 Price High ............................. Low ................................ A v e rag e......................... .......... 98.066 98.048 98.055 ............ Discount Rate 7. 651% 7.722% 7.695% Investment Rate 1 Price 96.0 77* 7.91% 7.99% 7.96% 96.047 96.060 Discount Rate Investment Rate 1 7.760% 7.819% 7.793% 8.19% 8.25% 8.23% 1 Equivalent coupon-issue yield. a Excepting one tender of $25,000. (32 percent of the amount of 91-day bills bid for at the low price was accepted.) (53 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing December 14, 1978 ...................................... 3,390,890,000 Philadelphia ............................. Cleveland .................................... Richmond .................................. Atlanta ...................................... Chicago ...................................... S t T .nu is ....................... Minneapolis ................................ Kansas City ............................... Dallas ............................ San Francisco ........................... 16,970,000 45,335,000 21.520,000 25,350,000 223,920,000 43,255,000 4,565,000 32,910,000 17,510,000 151,380,000 20,775,000 1,914,090,000 16,970,000 45,335,000 21,520,000 25,350,000 78,920,000 32.255,000 4,565,000 32,910,000 17,510,000 83,380,000 U.S. Treasury ........................... 6,670,000 6,670,000 T o t a l s ..................................... $4,001,050,000 Boston ........................................ N ew Y o rk $ 20,775,000 $ $2,300,250,000b b Includes $342,085,000 noncompetitive tenders from the public, c Includes $199,590,000 noncompetitive tenders from the public. Accepted Received Accepted Received F.R . District (and U.S. Treasury) 182-Day Treasury Bills Maturing March 15, 1979 $ 37,315,000 4,501,870,000 7,655,000 71,395,000 20,535,000 19,950,000 223,345,000 28,220,000 26,180,000 25,975,000 11,885,000 193,705,000 $ 32,615,000 2,971,020,000 7,655,000 71,395,000 18,535,000 19,950,000 73,345,000 17,220,000 26,180,000 25,975,000 11,885,000 115,705,000 9,155,000 9,155,000 $5,177,185,000 $3,400,635,000°
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