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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States 8 4 7 11 Circular No. December 13, 1978 J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $2,700,000,000 of 91-Day Bills, Additional Amount, Series Dated September 2 1 ,1 9 7 8 , Due March 2 2 ,1 9 7 9 (To Be Issued December 21, 1978) $2,900,000,000 of 182-Day Bills, Dated December 21, 1978, Due June 21, 1979 To ^4// CoMC^rn^d, w and TrM^t Cow^awfo^, awcf Fodcrof Df^trfcL 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 $5,600 million, to be issued December 21, 1978. This offering will not provide new cash for the Treasury as the maturing bills are outstanding in the amount of $5,608 million. The two series offered are as follows: 91-day bills (to maturity date) for approximately $2,700 million, representing an additional amount of bills dated September 21, 1978, and to mature March 22, 1979 (CUSIP No. 912793 X50), originally issued in the amount of $3,403 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $2,900 million to be dated December 21, 1978, and to mature June 21, 1979 (CUSIP No. 912793 Z25). Both series of bills will be issued for cash and in exchange for Treasury bills maturing December 21, 1978. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $3,222 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 Il30 p.m., Eastern Standard time, Monday, December 18, 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 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 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 December 21, 1978, in cash or other immediately available funds or in Treasury bills maturing December 21, 1978. Cash adjust ments 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 Standard time, Monday, December 18, 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. Pay won/ j^or Proajary MP caMMot &<? maafe &y credit fAo Pr^ajary Tajr a?tJ Loan rJccoMw?. wado fw ca^A or ofAor ?'w7Mf<Pato/y avai/a^/a jMMpy or iw wtafWMn) TrM^Mry Results of the last weekly offering of Treasury bills (91-day bills to be issued December 14, 1978, representing an additional amount of bills dated September 14, 1978, maturing March 15, 1979; and 182-day bills dated December 14, 1978, maturing June 14, 1979) are shown on the reverse side of this circular. PAUL A . VOLCKER, (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 DECEM BER 14, 1978) Range of Accepted Competitive Bids pz-D ay AfatMriwp Afore A H i g h .................................... ..................... Bf/fy z^F-Day TratMMry Bff/^ Afatarmp /Mwe z^, zp /p 75 , zpyp DtycoMMf /Mve-rttweMt Price Rate Rate 1 97.750 8 .9 0 1 % 9 .2 3 % Di-fCOMMt Price R o te 95.326a 9 .2 4 5 % /Mve-yftnettt R a te t 9 .8 3 % Low .................................... ..................... 97.741 8 .9 3 7 % 9 .2 7 % 95.314 9 .2 6 9 % 9 .8 6 % Average ............................. ..................... 97.743 8 .9 2 9 % 9 .2 6 % 95.317 9 .2 6 3 % 9 .8 5 % ^ Excepting one tender of $500,000. t Equivalent coupon-issue yield. (3 2 percent of the amount of 9 1 -day bills bid for at the low price was accepted.) (8 4 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted P.R. District (and 1/. A. PreajMry^ p z-D ay Traa^Mry B f//j AfatMrwp AfaraA z^, zpyp z&?-Day Traajary BtAy AfatMn'wp /Mtta z^, zpyp Received Received ^cce^ted ^fcce^ted ............................... $ 41,905,000 4,279,670,000 19,065,000 41,155,000 24,685,000 31,845,000 266,255,000 45,010,000 15,615,000 36,330,000 15,955,000 161,665,000 $ 31,905,000 2,324,290,000 18,625,000 30,135,000 17,300,000 29,750,000 181,275,000 30,010,000 15,615,000 32,950,000 15,955,000 61,665,000 $ 38,605,000 4,113,600,000 10,025,000 82,810,000 34,375,000 27,865,000 300,770,000 38,275,000 13,225,000 20,125,000 9,005,000 207,125,000 $ 18,605,000 2,375,300,000 10,025,000 50,710,000 34,375,000 27,275,000 226,770,000 17,275,000 10,225,000 20,125,000 9,005,000 90,115,000 U .S . Treasury ............................... 10,610,000 10,610,000 11,065,000 11,065,000 TOTALS .................................... $4,989,765,000 $4,906,870,000 $2,900,870,000c Boston .............................................. N ew Y o r k ....................................... Philadelphia .................................. Cleveland ......................................... Richmond ....................................... Atlanta ............................................ Chicago ............................................ St. Louis ......................................... Minneapolis .................................... Kansas City .................................... Dallas ................................................. San Francisco $2,800,085,000^ b Includes $390,350,000 noncompetitive tenders from the public, c Includes $252,475,000 noncompetitive tenders from the public.
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