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FE D E R A L R ESER VE BAN K O F N E W YORK Fiscal Agent of the United States [ C irc u la r No. 8 5 7 3 M ay 16, 1979 ]W OFFERING OF TWO SERIES OF TR EA SUR Y BILLS $2,800,000,000 of 91-Day B ills, Additional Am ount, Series Dated February 2 2 ,1 9 7 9 , Due August 2 3 ,1 9 7 9 (To Be Issued May 24, 1979) $2,900,000,000 of 183-Day B ills, Dated May 24, 1979, Due Novem ber 23, 1979 To A ll 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 $5,700 million, to be issued May 24, 1979. This offering will result in a pay-down for the Treasury of about $200 million as the maturing bills are outstanding in the amount of $5,911 million. The two series offered are as follows: 91-day bills (to maturity date) for approximately $2,800 million, representing an additional amount of bills dated February 22, 1979, and to mature August 23, 1979 (C U SIP No. 912793 2H 8), originally issued in the amount of $3,015 million, the additional and original bills to be freely interchangeable. 183-day bills for approximately $2,900 million to be dated May 24, 1979, and to mature November 23, 1979 (C U SIP No. 912793 2W 5). Both series of bills will be issued for cash and in exchange for Treasury bills maturing May 24, 1979. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,479 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 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 Daylight Saving time, Monday, May 21, 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 T reasury. Each tender must be for a minimum of $10,000. Tenders over $10,000 must be 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 accom pany tenders for such bills from others, unless an express guaranty of payment by an incorporated bank or trust company accompanies the tenders. Public announcements 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 May 24, 1979, in cash or other immediately available funds or in Treasury bills maturing May 24, 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 Treas ury bills and govern the conditions of their issue. Copies of the circulars and tender forms may be obtained from any Federal Re serve 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 Daylight Saving time, Monday, May 21, 1979, at the Securities Deparment of its Head Office and 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 confiirmation; no tenders may be submitted by telephone. P a y m e n t fo r T re a su ry bills ca n n o t be m a d e b y credit th ro u g h th e 7 rea su ry 7 'ax and L oan A c c o u n t. S e ttle m e n t m u s t be m ade■in cash or o th e r im m ed ia tely available fu n d s or in m a tu rin g T re a su ry bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued May 17, 1979, representing an additional amount of bills dated February 15, 1979,'maturing August 16, 1979; and 182-day bills dated May 17, 1979, maturing November 15, 1979) are shown on the reverse side of this circular. P aul A. V olcker , P r e s id e n t. Please note that the Treasury bills maturing November 23, 1979 will be 183-day bills. ( over) -L RESULTS OF LAST W EEKLY O FFERING OF TR EA SUR Y BILLS (TW O SERIES TO BE ISSUED M AY 17, 1979) Range of A ccepted Com petitive Bids 91 -D a y T re a su ry B ills M a tu rin g A u g u s t 16, 1979 High...................................... Low....................................... Average................................. 182-D a y T re a su ry B ills Maturing November 15 , 1979 Price Discount Rate Investment R ate1 Price 97.606 97.589 97.597 9.471% 9.538% 9.506% 9.86% 9.94% 9.90% 95.233 95.209 95.218 Discount Rate 9.429% 9.477% 9.459% Investment Rate1 10.07% 10.12% 10.10% 1 Equivalent coupon-issue yield. (4 percent of the amount of 91-day bills bid for at the low price was accepted.) (76 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders R eceived and Accepted 91 -D a y T re a su ry B ills M a tu rin g A u g u s t 16, 1979 182-D a y T re a su ry B ills M a tu rin g N o v e m b e r 15 , 1979 /'. R. District (and US. Treasury) Received Boston................................... $ 43,610,000 4,117,975,000 New Y ork............................. 24,350,000 Philadelphia........................... 50,675,000 Cleveland............................... 22,615,000 Richmond.............................. 37,910.000 Atlanta................................... 311,865,000 Chicago.................................. 46,290,000 St. Louis.......... ..................... 18,905,000 Minneapolis........................... 49,245,000 Kansas City............................ 19,575,000 Dallas.................................... 220,365,000 San Francisco........................ $ 43,610,000 2,363,975,000 24,350,000 50,675,000 22,615.000 37,910,000 168,665,000 27,290,000 9,105,000 49,245,000 19,575,000 168,445,000 $ 61,145,000 4,595,870,000 12,165.000 30,520,000 23,585,000 32,525,000 242,770,000 36,960,000 20,055,000 37,615,000 11,085,000 226,880,000 $ 44,225,000 2,452,470,000 12,165,000 29,800,000 23,585,000 32,515,000 132,290,000 15,480,000 8,855,000 37,615,000 11.085,000 174,240,000 U.S. Treasury........................ 14,820,000 14,820,000 26,310,000 26,310,000 T o t a l s ..................................... $4,978,200,000 $5,357,485,000 $3,000,635,000 Accepted $3,000,280,000;i a Includes $515,175,000 noncompetitive tenders from the public, b Includes $367,315,000 noncompetitive tenders from the public. Received Accepted
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