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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent of the United States r Circular No 84631 L November 22, 1978 J OFFERING OF TWO SERIES OF TREASURY BILLS $2,800,000,000 of 91-Day Bills, Additional Amount, Series Dated August 31, 1978, Due March 1, 1979 (To Be Issued November 30, 1978) $2,900,000,000 of 182-Day Bills, Dated November 30, 1978, Due May 31, 1979 7"o ^41/ 7 onJ rM.y? aMcf O^Aar^ CoMcarMaJ, w ?Aa Yaaoncf FadaraJ Ra^arra Df^^rfaE* Following 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 30, 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 fo llo w s: 91-day bills (to maturity date) for approximately $2,800 million, representing an additional amount of bills dated A ugust 31, 1978, and to mature March 1, 1979 ( C U S I P N o . 912793 X 2 7 ) , originally issued in the amount of $3,404 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $2,900 million to be dated November 30, 1978, and to mature M ay 31, 1979 ( C U S I P N o . 912793 Y 7 5 ) . Both series of bills will be issued for cash and in exchange for Treasury bills maturing November 30, 1978. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $3,137 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 27, 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 o rk 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 30, 1978, in cash or other immediately available funds or in Treasury bills maturing November 30, 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 27, 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. Paywaw/ jhr Traayary aawwof &a maJa Ay arachf ?Aroa^A /Aa TraajMrv Ta-V awJ Loan MaaoHwL NaM/a?Maw? Aa waJa w aa^A or o/Aar hmaecAafa/y a^a//aA/a or ma^aWn^ Traayary Ai7A. Results of the last weekly offering of Treasury bills (90-day bills to be issued November 24, 1978, representing an additional amount of bills dated August 24, 1978, maturing February 22, 1979; and 181-day bills dated November 1978 maturing May 24, 1979) are shown on the reverse side of this circular. 24, PAUL A. VOLCKER, (O V E R ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 22, 1978) Range of Accepted Competitive Bids po-Day Tzca^ttzy BifAy AfafwBtp Bc^rt^ry zpyp DAfCOMM? Raff /Mrf^fwfMf .Raff 1 97.807 8.504% 8.772% 8.81% 9 .09% 97.826 8.696% 9 .01% BWcf H igh............................ ................. Low ............................ .................... Average ....................... .................... 97.874a z^z-Day 7Vaa.swy Bf//j Afafarwp Afay zpyp PWff 95.490 DAffOMMf Raff /HVfrftMfHf Raff t 9 .52 % 95.472 8.970% 9.006% 9 .56% 95.477 8.996% 9.55% I Equivalent coupon-issue yield. ^ Excepting two tenders totaling $210,000. (72 percent of the amount of 90-day bills bid for at the low price was accepted.) (23 percent of the amount of 181-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted po-Day Tzcajazy BA/Ay AfafMrmp BcAraary zpyp ^fff^ffd Rfffwfd R.R. Di^frtrf (awe? B.J. Rrfa^Mryj z^z-Day Traa^Mzy Bi/Ay Afaf^W^p AAay zpyp Rfcfwfd ^fff^ffd 26,125,000 3,588,615,000 20,640,000 24,670,000 19,935,000 26,920,000 331,215,000 31,295,000 20,275,000 23,685,000 13,310,000 172,000,000 $ 26,125,000 2,215,145,000 20,640,000 24,670,000 19,935,000 26,920,000 256,215,000 24,295,000 20,275,000 23,685,000 13,310,000 122,000,000 $ 20,625,000 4,643,365,000 11,955,000 31,455,000 17,890,000 52,455,000 356,080,000 41,640,000 29,045,000 32,480,000 11,895,000 239,450,000 $ 20,625,000 2,639,465,000 11,955,000 21,455,000 16,390,000 28,605,000 32,230,000 20,140,000 25,965,000 32,480,000 11,595,000 27,450,000 U.S. Treasury ........................ 6,825,000 6,825,000 12,175,000 12,175,000 TOTALS ....................................... $4,305,510,000 Boston .................................... New York .............................. Philadelphia .......................... Cleveland ................................ Richmond .............................. Atlanta .................................. Chicago .................................. St. Louis ................................ Minneapolis ............................ Kansas City ............................ Dallas ...................................... San Francisco ........................ $ $2,800,040,000b b Includes $355,755,000 noncompetitive tenders from the public, c Includes $279,045,000 noncompetitive tenders from the public. $5,500,510,000 $2,900,530,000' FOR IMMEDIATE RELEASE Contact: November 8, 1978 John P. Plum 202/566-2615 TREASURY WILL TERMINATE ISSUE OF $100,000 DENOMINATION TREASURY BILL The Treasury Department today a n n ounced that Tre a s u r y bills in physical form will not be available on new offerings after December 31, 1978. Under Section 350.17 of Department Circular, Public Debt Series No. 26-76, provision was made for the issue of $100,000 denomination bills through Decem ber 31, 1978, to investors legally required to hold securities in physical form. The grace period was established to provide an o p p o r t u n i t y for appropriate changes in any Federal, State, mun i c i p a l or local laws or regulations that precluded certain types of investors from holding or pledging securities in book - e n t r y form. A relatively small number of d e f i nitive bills have been issued to institutional investors w h i c h were able to e s t a b l i s h their entitlement to physical securities. However, there have been no developments that w o u l d w a r r a n t a c o n t i n u a t i o n of the offering of Treasury bills in d e f i nitive form beyo n d the date established in the regulations. All new T r e asury bills o f f e r e d for sale after December 31, 1978, will be a v a ilable o nly in book-entry form. o B-1253 http://fraser.stlouisfed.org/ [Enc. Cir. No. 8^63] Federal Reserve Bank of St. Louis 0 o
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