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FED ER A L R ESERVE BAN K O F N EW YORK Fiscal Agent of the United States [ Circular No. 8 5 5 6 1 A pril 18, 1979 i OFFERING OF TWO SERIES OF TR EA SU R Y BILLS $3,000,000,000 o f 91-Day B ills, Additional A m ount, Series Dated January 25, 1979, Due July 26, 1979 (T o B e Issued A pril 26, 1979) $3,000,000,000 of 182-Day B ills, Dated April 26, 1979, Due October 25, 1979 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $6,000 million, to be issued April 26, 19/9. This ottering will result in a pay-tiown for the treasury ot about $6,1V8 million as the ma turing bills are outstanding in the amount of $12,198 million ($6,005 million of which represents 23-day cash management bills issued April 3). The two series offered are as follows: 91-day bills (to maturity date) for approximately $3,000 million, representing an additional amount of bills dated January 25, 1979, and to mature July 26, 1979 (C U SIP No. 912793 2D7), originally issued in the amount of $3,005 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,000 million to be dated April 26, 1979, and to mature October 25, 1979 (C U b lP No. 912/93 2S4). Both series of bills will be issued for cash and in exchange for Treasury bills maturing April 26, 1979. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $5,249 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. Both series of bills will be issued entirely m 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, April 23, 1979. 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. 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 must be made or completed at the Federal Reserve Bank or Branch or at the Bureau of the Public Debt on April 26, 1979, in cash or other immediately available funds or in Treasury bills maturing April 26, 1979. 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, 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, April 23, 1979, 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 Treasury and Agency Issues Division of this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to writ ten confirmation; no tenders may be submitted by telephone. Payment for Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued April 19, 1979, representing an additional amount of bills dated January 18, 1979, maturing July 19, 1979; and 182-day bills dated April 19, 1979, maturing October 18, 1979) are shown on the reverse side of this circular. P a u l A . V olcker, President. (cm ) RESULTS OF LAST W EEKLY O FFERING OF TR EA SUR Y BILLS (TW O SERIES TO BE ISSUED APRIL 19, 1979) Range of A ccepted C om petitive Bids 182-Day Treasury Bills Maturing October 18,1979 91-Day Treasury Bills Maturing July 19,1979 H igh............................ ................ Low............................. ................ Average....................... ................ Price Discount Rate Investment Ratel 97.578a 97.564 97.570 9.582% 9.637% 9.613% 9.98% 10.04% 10.02 % Price Discount Rate Investment Rate1 95.147 b 95.123 95.133 9.599% 9.647% 9.627% 10.26% 10.31% 10.29% 1 Equivalent coupon-issue yield. a Excepting two tenders totaling $80,000. b Excepting one tender of $250,000. (63 percent of the amount of 91-day bills bid for at the low price was accepted.) (98 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders R eceived and Accepted 182-Day Treasury Bills Maturing October 18,1979 91-Day Treasury Bills Maturing July 19,1979 F. R. District (and U.S. Treasury) Boston...................................... New Y ork................................ Philadelphia............................ Cleveland................................. Richmond................................ Atlanta..................................... Chicago.................................... St. Louis.................................. Minneapolis............................. Kansas City............................. Dallas....................................... San Francisco......................... $ 36,085,000 4,727,610,000 29,060,000 41,250,000 34,285,000 34,430,000 454,705,000 41,540,000 5,500,000 35,895,000 29,495,000 403,520,000 U.S. Treasury......................... 28,500,000 T o tals ................................. $5,901,875,000 $ 34,975,000 2,325,210,000 29,060,000 36,000,000 31,025,000 34,430,000 119,705,000 28,800,000 5,500,000 34,795,000 29,495,000 262,520,000 28,490,000 $3,000,005,000c c Includes $547,855,000 noncompetitive tenders from the public, d Includes $321,925,000 noncompetitive tenders from the public. Received Accepted Received $ 22,375,000 4,902,615,000 12,185,000 28,685,000 21,460,000 25,235,000 268,615,000 34,865,000 5,770,000 17,655,000 14,940,000 302,745,000 Accepted $ 22,375,000 2,542,615,000 12,185,000 28,685,000 21,460,000 25,235,000 73,615,000 24,865,000 5,770,000 17,655,000 14,940,000 182,745,000 28,885,000 28,885,000 $5,686,030,000 $3,001,030,000
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