The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ER AL R E SE R V E B A N K O F N E W YO RK
Fiscal A gen t of the United States
Circular No. 8 4 5 6 1
November IS, 1978 J
OFFERING OF TWO SERIES OF TREASURY BILLS
$2,800,000,000 of 90-Day Bills, Additional Amount, Series Dated August 24,1978, Due February 22,1979
(To Be Issued November 24, 1978)
$2,900,000,000 of 181-Day Bills, Dated November 24, 1978, Due May 24, 1979
To
/Mcor/tcra^d
and 7TM
J?
and
CoM^rn^d, w
J^coMd F^d^fa/ F ^ r w Dij^ricL*
Follow ing is the text of a notice issued by the Treasury Department, released yesterday:
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 November 24, 1978. This offering will
not provide new cash for the Treasury as the maturing bills are
outstanding in the amount of $5,708 million. The two series offered
are as follow s:
90-day bills (to maturity date) for approximately $2,800
million, representing an additional amount of bills dated
August 24, 1978, and to mature February 22, 1979
( C U S I P N o . 912793 W 9 3 ) , originally issued in the
amount of $3,404 million, the additional and original
bills to be freely interchangeable.
181-day bills for approximately $2,900 million to be dated
November 24, 1 9/8, and to mature M ay 24, 1979 ( C U S I P
N o . 912793 Y 6 7 ) .
Both series of bdls will be issued for cash and in exchange for
Treasury bills maturing November 24, 1978. Federal Reserve Banks,
for themselves and as agents of foreign and international monetary
authorities, presently hold $3,038 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 Standard time, Monday. November 20,
1978. Form P D 4632-2 (for 26-week series) or Form P D 4632-3
(fo r 13-week series) should be used to submit tenders for bills to
be maintained on the book-entry records of the Department of the
T reasury.
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 N ew Y ork 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
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.
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 of 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 November 24, 1978, in cash or other immediately available funds
or in Treasury bills maturing November 24, 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 4 5 4 (b ) and 1 22 1 (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 N o . 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 Standard time, Monday, November 20, 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 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. Paywa?^ /o r Praa^ary AAA rawMO^ Aa mada Ay aradd (Aroa^A ?Aa Fraayary Pa^r ana? Loan HaaoMML NatdawaMf mas? Aa wada w aa^A or ofAar wnwad/a(aAy az/adaAA /awd.y or At MaAtrttt^
Praa^ttry AAA.
Results of the last weekly offering of Treasury bills ( 9 1 -day bills to be issued November 16, 1978, representing an
additional amount of bills dated August 17, 1978, maturing February 15, 19 7 9 ; and 182-day bills dated November 16,
1978, maturing M ay 17, 1979) are shown on the reverse side of this circular.
PAUL
A . VOLCKER,
Piease note that the current ojf?ering is /or 90-day and 181-day Treasury biiis.
(OVER)
RESULTS OF LA ST W E E K L Y OFFERING OF T R E A SU R Y BILLS
(T W O SERIES TO BE ISSUED N O VEM BER 16, 1978)
Range of Accepted Competitive Bids
p z-D ay Tr^a-yMry R
zYAy
MafMrzMp F^&raa^y z^, zpyp
H ig h .............................................................
L ow .............................................................
A verage .....................................................
1 Equivalent coupon-issue yield.
PWcf
97.836
97.823
97.828
DYfCOMM?
Pafp
8.561%
8.612%
8.593%
z^p-D ay Tr^ayMry
zWahzrmp M ay zy, zpyp
Fafp i
8.87%
8.93%
8.91%
(4 8 percent of the amount of 91-day bills
bid for at the low price was accepted.)
95.311
95.299
95.303
DfjfOMM?
Faff
9.275%
9.299%
9.291%
Znpf.yfM!;ttf
Faff 1
9.87%
9.89%
9.88%
(81 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 D ^ a ^ f y BzYAy
MatMrzMp TY&rMary z j, zpyp
F.F. Dfyfn'cf ("az:d [7. J. Prfa^Mry)
Boston
..............................................
^4cff/>ffd
Ffffivfd
$
4 3,250,000
z6*p-D ayT ^ayM ryR z/^
MaZzzrzMp M a y zy, zpyp
$
33,250,000
Ffcffvfd
$
65,655,000
^ccf^ffd
$
4 0,655,000
3,478,510,000
1,842,510,000
5,095,765,000
2,973,875,000
2 4 ,780,000
24,780,000
22,685,000
12,685,000
Cleveland .........................................
2 6 ,140,000
26,140,000
64,815,000
50,265,000
Richmond
.......................................
23,9 7 5 ,0 0 0
23,975,000
19,295,000
19,275,000
Atlanta
............................................
3 0,700,000
30,700,000
24,915,000
24,915,000
Chicago
............................................
2 0 1 ,090,000
37,590,000
223,625,000
61,210,000
.........................................
3 5,230,000
2 3,230,000
41,450,000
24,275,000
Minneapolis ....................................
51,435,000
19,875,000
20,030,000
14,030,000
Kansas City ....................................
3 8 ,825,000
37,105,000
41,040,000
39,940,000
N ew Y o rk
......................................
Philadelphia
St. Louis
..................................
13,160,000
13,160,000
11,570,000
11,570,000
...............................
2 58,290,000
181,045,000
249,755,000
113,550,000
U .S . Treasury ...............................
6,980 ,0 0 0
6 ,980,000
14,485,000
14,485,000
TOTALS ....................................
$ 4 ,232,365,000
$ 5 ,895,085,000
$ 3 ,400,730,000
Dallas ................................................
San Francisco
$ 2 ,3 0 0 ,3 4 0 ,0 0 0 "
a Includes $438,995,000 noncompetitive tenders from the public,
b Includes $351,240,000 noncompetitive tenders from the public.
November 15, 1978
TREASURY'S WEEKLY BILL OFFERING
The
fo llo w in g
s t a t e m e n t w as
issu e d
y e ste rd a y
by
th e
T reasu ry
D e p a rtm e n t:
The Department of the Treasury invites the attention of
potential bidders in the weekly bill auction to be held on Monday,
November 20, 1978, to the change in the relative amounts of 13-week
and 26-week bills being offered in this auction.
This adjustment
was made in light of recent market conditions and is intended to
enlarge the potential competitive award of 13-week bills.
FEDERAL RESERVE BANK OF NEW YORK
@FedFRASER