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FEDERAL RESERVE BANK OF NEW YORK
Fiscal A gen t of the United States
r Circular No 84331
L October 11, 1978 J
OFFERING OF TWO SERIES OF TREASURY BILLS
$2,300,000,000 of 91-Day Bills, Additional Amount, Series Dated July 20, 1978, Due January 18, 1979
(To Be Issued October 19, 1978)
$3,400,000,000 of 182-Day Bills, Dated October 19, 1978, Due April 19, 1979
To A // /wcor/'ora^J Raw&y antf 7?%?;
ant? 0?A?ry
w
R^y^rw
Following is the text of a notice issued by the Treasury Department, released yesterday:
The Department of the Treasury, by this public notice, invites
Payment for the full par amount of the bills applied for must
tenders for two series of Treasury bills totaling approximately
accompany all tenders submitted for bills to be maintained on the
$5,700 million, to be issued October 19, 1978. This offering will
book-entry records of the Department of the Treasury. A cash
not provide new cash for the Treasury as the maturing bills are
adjustment will be made on all accepted tenders for the difference
outstanding in the amount of $5,705 million. The two series offered
between the par payment submitted and the actual issue price as
are as follow s:
determined in the auction.
91-day bills (to maturity date) for approximately $2,300
N o deposit need accompany tenders from incorporated banks
million, representing an additional amount of bills dated
and trust companies and from responsible and recognized dealers
July 20, 1978, and to mature January 18, 1979 (C U S IP
in investment securities for bills to be maintained on the book-entry
No. 912793 W 44), originally issued in the amount of
records of Federal Reserve Banks and Branches, or for bills issued
$3,404 million, the additional and original bills to be
in bearer form, where authorized. A deposit of 2 percent of the par
freely interchangeable.
amount of the bills applied for must accompany tenders for such
182-day bills for approximately $3,400 million to be dated
bills from others, unless an express guaranty of payment by an
October 19, 1978, and to mature April 19, 1979 (C U S IP
incorporated bank or trust company accompanies the tenders.
No. 912793 X 92).
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 October 19, 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 rfght
authorities, presently hold $3,278 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 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
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 are
book-entry records of Federal Reserve Banks and Branches, and
able to show that they are required by law or regulation to hold
bills issued in bearer form must be made or completed at the Fed
securities in physical form, both series of bills will be issued entirely
eral Reserve Bank or Branch or at the Bureau of the Public Debt
in book-entry form in a minimum amount of $10,000 and in any
on October 19, 1978, in cash or other immediately available funds
higher $5,000 multiple, on the records either of the Federal Reserve
or in Treasury bills maturing October 19, 1978. Cash adjustments
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 Dept, Washington, D.C. 20226, up
Under Sections 454(b) and 1221(5) of the Internal Revenue
to 1 :30 p.m., Eastern Daylight Saving time, Monday, October 16,
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
T reasury.
life insurance companies) must include in his or her Federal in
Each tender must be for a minimum of $10,000. Tenders over
come tax return, as ordinary gain or loss, the difference between
$10,000 must be in multiples of $5,000. In the case of competitive
the price paid for the bills, whether on original issue or on sub
tenders the price offered must be expressed on the basis of 100,
sequent purchase, and the amount actually received either upon sale
with not more than three decimals, e.g., 99.925. Fractions may not
or redemption at maturity during the taxable year for which the
be used.
return is made.
Banking institutions and dealers who make primary markets in
Department of the Treasury Circulars No. 418 (current revi
Government securities and report daily to the Federal Reserve
sion) and Public Debt Series— Nos. 26-76 and 27-76, and this
Bank of New Y ork their positions in and borrowings on such
notice, prescribe the terms of these Treasury bills and govern the
securities may submit tenders for account of customers, if the
conditions of their issue. Copies of the circulars and tender forms
names of the customers and the amount for each customer are
may be obtained from any Federal Reserve Bank or Branch, or
furnished. Others are only permitted to submit tenders for their
from the Bureau of the Public Debt.
own account.
This Bank will receive tenders for both series up to 1 :30 p.m ., Eastern Daylight Saving time, Monday, October 16,
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." Form s for submitting tenders directly to the Treasury are available from the Government Bond
Division o f the Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation;
no tenders may be submitted by telephone. PaywoMf for ProayMry AA/y cawMof Ao wacfo Ay <rrc<P7 fAroM^A fAo TroayMry Pa^r anc? Loaw ^rcoMMf.
wt;yf Ao waJo fw cayA or ofAor fw w oJfa^/y aiwVaAA? fawofy or in waf^rm ^
Proayary Ai//y.
Results of the last weekly offering of Treasury bills (9 1-d ay bills to be issued October 12, 1978. representing an
additional amount of bills dated July 13, 1978, maturing January 11, 1 9 7 9 ; and 182-day bills dated October 12, 1978,
maturing April 12, 1979) are shown on the reverse side of this circular.
PAUL A . VoLCKER,
(OVER)
RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED OCTOBER 12, 1978)
Range of Accepted Competitive Bids
p /-D a y 7Yaa^Mry
AfafaWap /a a a a r y / r , rpyp
97.919
Df-MOMM?
Paff
8 .2 3 3 %
Paf^ 1
8 .5 2 %
Low .................................... .....................
97.911
8 .2 6 4 %
A v e r a g e ............................. .....................
97.913
8 .2 5 6 %
PWfF
H igh
.................................. .....................
r ^ - D a y Tfcanary
Afa^aWwp ^ /?n 7
rpyp
PrifF
95.753
DTfCOMMf
Pah?
8 .4 0 1 %
8 .5 6 %
95.730
8 .4 4 6 %
8 .9 5 %
8 .5 5 %
95.742
8 .4 2 2 %
8 .9 2 %
Pafp 1
8 .9 0 %
^ Equivalent coupon-issue yield.
(1 9 percent of the amount of 91-day bills
bid for at the low price was accepted.)
( 6 percent of the amount o f 182-day bills
bid for at the low price was accepted.)
Total Tenders Received and Accepted
p z-D ay Tr^ajary Z?;7A$
Afa^aWap /a a a a /y zz, zpyp
z&?-Day Trca^ary B?77y
Afafarz'ap A ^ n 7 z^, zpyp
Pcc^fwJ
P.P. Di-ytrfcf ("anJ C.P. Pr^ajMry)
Boston
..............................................
N ew Y o rk
.......................................
$
2 1,835,000
3,598,870,000
$
21,835,000
1,858,650,000
$
11,160,000
4 ,6 9 2 ,490,000
$
11,160,000
3,000,390,000
..................................
15,445,000
14,390,000
15,060,000
15,060,000
Cleveland .........................................
38,075,000
3 8,075,000
52,005,000
4 7,005,000
Philadelphia
.......................................
28,165,000
2 5,165,000
20,255,000
13,255,000
Atlanta
............................................
28,945,000
2 8,945,000
18,245,000
17,575,000
Chicago
............................................
2 3 3 ,260,000
117,130,000
2 31,755,000
159,255,000
.........................................
37,580,000
23,280,000
2 9 ,560,000
17,560,000
Minneapolis ....................................
2 0 ,250,000
11,200,000
37,905,000
17,905,000
Kansas City ....................................
4 6 ,155,000
39,125,000
36,465,000
22,585,000
Dallas .................................................
15,240,000
15,240,000
11,190,000
11,190,000
...............................
2 1 8 ,730,000
9 4,630,000
170,500,000
54,500,000
U .S . Treasury ...............................
13,015,000
13,015,000
13,615,000
13,615,000
TOTALS ....................................
$4,315 ,5 6 5 ,0 0 0
Richmond
St. Louis
San Francisco
$ 2 ,3 0 0 ,6 8 0 ,0 0 0 '
a Includes $390,545,000 noncompetitive tenders from the public,
b Includes $217,255,000 noncompetitive tenders from the public.
$5,340 ,2 0 5 ,0 0 0
$3,401,055,00(P
@FedFRASER