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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
r Circular No. 84221
L September 20, 1978 J
OFFERING OF TWO SERIES OF TREASURY BILLS
$2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated June 29,1978, Due December 28,1978
(To Be Issued September 28, 1978)
$3,400,000,000 of 182-Day Bills, Dated September 28, 1978, Due March 29, 1979
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Following is the text of a notice issued by the Treasury
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 September 28, 1978. This offering will
not provide new cash for the Treasury as the maturing bills are
outstanding in the amount of $5,709 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
June 29, 1978, and to mature December 28, 1978 (C U S IP
No. 912793 V 29), originally issued in the amount of
$3,403 million, the additional and original bills to be
freely interchangeable.
182-day bills for approximately $3,400 million to be dated
September 28, 1978, and to mature March 29, 1979
(C U S IP No. 912793 X 68).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing September 28, 1978. Federal Reserve
Banks, for themselves and as agents of foreign and international
monetary authorities, presently hold $2,980 million of the maturing
bills. These accounts may exchange bills they hold for the bills now
being offered at the weighted average prices of accepted competi
tive tenders.
The bills will be issued on a discount basis under competitive and
noncompetitive bidding, and at maturity their par amount will be
payable without interest. Except for definitive bills in the $100,000
denomination, which will be available only to investors who are
able to show that they are required by law or regulation to hold
securities in physical form, both series of bills will be issued entirely
in book-entry form in a minimum amount of $10,000 and in any
higher $5,000 multiple, on the records either of the Federal Reserve
Banks and Branches, or of the Department of the Treasury.
Tenders will be received at Federal Reserve Banks and Branches
and at the Bureau of the Public Debt, Washington, D. C. 20226,
up to 1 :30 p.m., Eastern Daylight Saving time, Monday, September
25, 1978. Form PD 4632-2 (for 26-week series) or Form PD 4632-3
(for 13-week series) should be used to submit tenders for bills to
be maintained on the book-entry records of the Department of the
Treasury.
Each tender must be for a minimum of $10,000. Tenders over
$10,000 must be in multiples of $5,000. In the case of competitive
tenders the price offered must be expressed on the basis of 100,
with not more than three decimals, e.g., 99.925. Fractions may not
be used.
Banking institutions and dealers who make primary markets in
Government securities and report daily to the Federal Reserve
Bank of New York their positions in and borrowings on such
securities may submit tenders for account of customers, if the
names of the customers and the amount for each customer are
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 o f 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.
Public announcement will be made by the Department of the
Treasury of the amount and price range of accepted bids. Competi
tive bidders will be advised of the acceptance or rejection o f their
tenders. The Secretary of the Treasury expressly reserves the right
to accept or reject any or all tenders, in whole or in part, and the
Secretary's action shall be final. Subject to these reservations,
noncompetitive tenders for each issue for $500,000 or less without
stated price from any one bidder will be accepted in full at the
weighted average price (in three decimals) of accepted competitive
bids for the respective issues.
Settlement for accepted tenders for bills to be maintained on the
book-entry records of Federal Reserve Banks and Branches, and
bills issued in bearer form must be made or completed at the Fed
eral Reserve Bank or Branch or at the Bureau of the Public Debt
on September 28, 1978, in cash or other immediately available funds
or in Treasury bills maturing September 28, 1978. Cash adjustments
will be made for differences between the par value of the maturing
bills accepted in exchange and the issue price of the new bills.
Under Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954 the amount of discount at which these bills are sold
is considered to accrue when the bills are sold, redeemed or other
wise disposed of, and the bills are excluded from consideration as
capital assets. Accordingly, the owner of these bills (other than
life insurance companies) must include in his or her Federal in
come tax return, as ordinary gain or loss, the difference between
the price paid for the bills, whether on original issue or on sub
sequent purchase, and the amount actually received either upon sale
or redemption at maturity during the taxable year for which the
return is made.
Department of the Treasury Circulars No. 418 (current revi
sion) and Public Debt Series— Nos. 26-76 and 27-76, and this
notice, prescribe the terms of these Treasury bills and govern the
conditions of their issue. Copies of the circulars and tender forms
may be obtained from any Federal Reserve Bank or Branch, or
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, September
25, 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 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.
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Results of the last weekly offering of Treasury bills (91-d ay bills to be issued September 21, 1978, representing
an additional amount of bills dated June 22, 1978, maturing December 21, 1 9 7 8 ; and 182-day bills dated September 21,
1978, maturing March 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 SEPTEMBER 21, 1978)
Range of Accepted Competitive Bids
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98.014a
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7 .8 5 7 %
Low .................................... .....................
98.002
7 .9 0 4 %
8 .1 8 %
95.962
7 .9 8 7 %
8 .4 4 %
A v e r a g e ............................. .....................
98.007
7 .8 8 4 %
8 .1 6 %
95.966
7 .9 7 9 %
8 .4 3 %
PWff
H igh
.................................. .....................
Awrf^fWfWf
Raff ^
8 .1 3 %
Priff
95.971b
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.Raf?
7 .9 6 9 %
/MVfjfMMMf
Raff i
8 .4 2 %
I Equivalent coupon-issue yield,
a Excepting one tender of $10,000.
b Excepting one tender of $10,000.
(9 2 percent of the amount of 9 1 -day bills
bid for at the low price was accepted.)
(5 0 percent of the amount of 182-day bills
bid for at the low price was accepted.)
Total Tenders Received and Accepted
p z-D ay TfaayMry BfBy
AfatMnVtp
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...............................
$ 23,525,000
3,347,880,000
15,670,000
27,890,000
25,190,000
24,290,000
166,915,000
34,105,000
4,795,000
37,970,000
14,375,000
166,905,000
$ 22,525,000
1,858,560,000
15,670,000
27,890,000
25,190,000
24,290,000
71,915,000
20,105,000
4,795,000
37,970,000
14,375,000
71,705,000
$ 25,700,000
5,365,380,000
7,990,000
99,145,000
24,420,000
14,680,000
316,300,000
27,240,000
54,620,000
33,760,000
6,890,000
205,145,000
$ 10,540,000
3,059,520,000
7,490,000
13,025,000
12,420,000
13,180,000
186,300,000
11,240,000
27,620,000
16,080,000
4,890,000
30,145,000
U .S . Treasury ...............................
5,040,000
5,040,000
7,875,000
7,875,000
TOTALS ....................................
$3,894,550,000
Boston
..............................................
N ew Y o rk
.......................................
Philadelphia
..................................
Cleveland .........................................
Richmond
.......................................
Atlanta
............................................
Chicago
............................................
St. Louis
.........................................
Minneapolis ....................................
Kansas City ....................................
Dallas .................................................
San Francisco
$2,200,030,000=
c Includes $335,520,000 noncompetitive tenders from the public,
d Includes $186,925,000 noncompetitive tenders from the public.
$6,189,145,000
$3,400,325,0004
@FedFRASER