Full text of Federal Reserve Bank of New York Circulars : 8574. Treasury to Auction $2,250 Million of 2-Year Notes

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FED ER A L RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
PCircular No. 8574
May 17, 1979

TREASURY TO AUCTION $2,250 MILLION OF 2-YEAR NOTES
To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued yesterday by the Treasury Department:
The Department of the Treasury will auction $2,250 million of 2-year notes to refund $1,848 million of
notes maturing May 31, 1979, and to raise $402 million new cash. The $1,848 million of maturing notes are those
held by the public, including $700 million currently held by Federal Reserve Banks as agents for foreign and in­
ternational monetary authorities.
In addition to the public holdings, Government accounts and Federal Reserve Banks, for their own ac­
counts, hold $239 million of the maturing securities that may be refunded by issuing additional amounts of the
new notes at the average price of accepted competitive tenders. Additional amounts of the new securities may
also be issued at the average price to Federal Reserve Banks, as agents for foreign and international monetary
authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount
of maturing securities held by them.
Printed on the reverse side is a table summarizing the highlights of the offering. Copies of the official
offering circular will be furnished upon request directed to our Treasury and Agency Issues Division
(Tel. No. 212-791-6619).
Enclosed is a copy of a standard form that can be used in submitting tenders for this offering (or for
any subsequent offering of 2-year notes).
This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Tuesday, May 22, 1979, at
the Securities Department of its Head Office and at its Buffalo Branch. A ll com petitive tenders, whether
transmitted by mail or by other means, must reach this Bank or its Branch by that time. However, for in­
vestors who wish to submit noncompetitive tenders and who find it more convenient to mail their tenders
than to present them in person, the official offering circular provides that noncom petitive tenders will be con­
sidered timely received if they are mailed to this Bank or its Branch under a postmark no later than M ay 21.
Bidders submitting noncompetitive tenders should realize that it is possible that the average price may
be above par, in which case they would have to pay more than the face value for the securities.
Payment may be made by personal check, or an official bank check, payable on its face to the Federal
Reserve Bank of New York; checks endorsed to this Bank will not be accepted. A personal check submitted
with the tender, either as a deposit or for the face amount of the securities, does not have to be certified.
However, in cases where only a deposit is submitted with the tender, a personal check submitted for the
final payment must be certified.
As provided in the official offering circular, “ in every case where full payment is not completed on
time, the deposit submitted with the tender, up to 5 percent of the face amount of securities allotted, shall,
at the discretion of the Secretary of the Treasury, be forfeited to the United States.”
A recorded message (at the Head Office — Tel. No. 212-791-5823; at the Buffalo Branch — Tel. No.
716-849-5046) provides information about this and other Treasury offerings; additional inquiries regarding
this offering may be made by calling, at the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch,
Tel. No. 716-849-5016.




PAUL A. VOLCKER,
President.
(Over)

HIGHLIGHTS OF TREASURY
OFFERING TO THE PUBLIC
OF 2-YEAR NOTES
TO BE ISSUED MAY 31, 1979

(Delivery date fo r coupon securities is June 6, 1979)

Amount Offered:

To the public

$2,250 million

Description of Security:

Term and type of security...........

2-year notes

Series and CUSIP designation ...

Series T-1981
(CUSIP No. 912827 JR4)

Maturity date.............................

May 31, 1981

Call date.....................................

No provision

Interest coupon r a te ..................

To be determined, based on the
average of accepted bids

Investment yield..........................

To be determined at auction

Premium or discount..................

To be determined after auction

Interest payment dates...............

November 30 and May 31

Minimum denomination available

$5,000

Terms of Sale:

Method of sale.......................................................................................... Yield auction
Accrued interest payable by investor......................................................... None
Preferred allotment................................................................................... Noncompetitive bid for
$1,000,000 or less
Deposit requirement................................................................................. 5% of face amount
Deposit guarantee by designated institutions............................................ Acceptable
Key Dates:

Deadline for receipt of tenders.................................................................. Tuesday, May 22, 1979,
by 1:30 p.m., EDST
Settlement date (final payment due)
a) cash or Federal funds....................................................................... Thursday, May 31, 1979
b) check drawn on bank within FRB district where submitted............. Tuesday, May 29, 1979
c) check drawn on bank outside FRB districtwhere submitted.............. Friday, May 25, 1979
Delivery date for coupon securities........................................................... Wednesday, June 6, 1979




UNITED

STATES OF AMERICA

T R E A S U R Y N O T E S OF MAY

31,

1981

SERIES T-1981
DEPARTMENT CIRCULAR
P u b l i c D e b t S e r i e s - No.

1.
1.
of

1.

The

D E P A R T M E N T OF T H E T R E A S U R Y ,
O F F I C E OF T H E S E C R E T A R Y ,
W a s h i n g t o n , M a y 17, 1979

11-79

INVITATION

Secretary

of

the T r e a s u r y ,

the S e c o n d L i b e r t y B o n d Act,

approximately $2,250,000,000
designated Treasury
No.

912827

J R 4).

b i d d i n g on
price

the

Notes
The

basis

e q u i v a l e n t of

interest

rat e on

accepted

bid w i l l
amounts

Government

accounts

in e x c h a n g e

amounts

of

price

securities

securities

new

these

s uch

securities
2.

2.
bear

1.

The

interest

held

will

November

30,

until

the p r i n c i p a l

to all
The

taxes

taxes,

taxation
thereof

by any

local




each

at

Additional

the a v e r a g e

that

and

inter­

the a g g r e g a t e

aggregate

6 months

becomes

1 979,

a semiannual

amount

and w i l l

basis

on M a y

payable.

n o t be s u b j e c t

derived

under

the

subject

whether

State,

any

f r o m the

on

31 and

They will

to cal l

for

bu t are

the U n i t e d

1954.

g i f t or o t h e r

exempt

the p r i n c i p a l

p o s s e s s i o n of

is s u b j e c t

C o d e of

inheritance,

or State,

i m p o s e d on

authority.

securities

Internal Revenue

to e s t a t e ,

Federal

hereafter

taxing

to

foreign

the

below.

t h e i r ow n

be d a t e d M a y 31,

subsequent

and w i l l

income

are

now or

for

e ach

to m a t u r i t y .

imposed

securities

excise

any

The

for

issued

exceeds

payable on

and

2.

issued

of

D E S C R I P T I O N OF S E C U R I T I E S

1979,

2.

equivalent

The

them.

30,

redemption prior

be

at the

tend e r .

securities.

to the e x t e n t

by

tha t date,

1981,

be

(CUSIP

required

accepted

Banks

as a g e n t s

November

m a t u r e M a y 31,

als o

accounts

securities

from

Reserve

Banks,

for

be

the p r i c e

for

at a u c t i o n w i t h

in the m a n n e r d e s c r i b e d

securities may

amount

tenders

securities,

sold

of e a c h

for m a t u r i n g T r e a s u r y

authorities,

of m a t u r i n g

be

authority

Series T-1981

securities may

national monetary
tenders

wil l

and

and F e d e r a l

to F e d e r a l R e s e r v e

of

1981,

Payment will

the bid y i e l d

of

account

the

of M a y 31,

the

invites

of U n i t e d S t a t e s

be d e t e r m i n e d

Additional

under

as a m e n d e d ,

of yi e l d .

the

FOR TENDERS

or

f r o m all
interest

States,

or

2.

3.

The

securities will

of p u b l i c m o n i e s .

They will

be a c c e p t a b l e

to s e c u r e

n o t be a c c e p t a b l e

deposits

in p a y m e n t of

taxes.
2.
and

4.

Bearer

securities

issued

registered

in d e n o m i n a t i o n s

$1,000,000.
bidders

in m u l t i p l e s

securities
2.

offered

those

1.

D.

up

20226,

Tuesday,

at

and

Interchanges

of

amounts.

and

United

the

and of coup o n ,

t r a n s f e r of

the T r e a s u r y ' s

States

registered

registered

general

securities

circular.

in effe c t ,

These

as w e l l

apply

general
as

to the
regulations

those

tha t m a y

be

M a y 22,

be r e c e i v e d

the B u r e a u of
p .m.,

1979.

at F e d e r a l R e s e r v e

the P u b l i c D ebt,

Eastern Daylight

Noncompetitive

timely

tenders

if p o s t m a r k e d

no

Banks

Washington,

Saving

time,

as d e f i n e d

later

below

than Monday,

1979.

3.

2.

for.

Each

tender must

Th e m i n i m u m bid

multiples

of

decimals,

expressed

e.g.,

Noncompetitive
form

state

the

face

is $ 5 , 0 0 0

and

larger

that amount.

desired,

tender

SALE PROCEDURES

will

to 1:30

be c o n s i d e r e d

M a y 21,

more

be

those

in thi s

Tenders
and

yield

$100,000,

w ill

to e l i g i b l e

denominations

currently

and B r a n c h e s

bid

$10,000,

int e r e s t ,

at a l a t e r date.

3.

will

and

a t tached,

be a v a i l a b l e

3.

C.

coupons

be p e r m i t t e d .

governing

securities

issued

to p r i n c i p a l

T h e D e p a r t m e n t of

regulations

interest

securities will

securities,

will

5.

include

of

of d i f f e r e n t

book-entry

as

with

of $ 5 , 0 0 0 ,

Book-entry

securities
and

securities

7.11%.

in t erms
Common

tenders must

in lieu

t han on e

Competitive

of

of

an a n n u a l

the

a specified

noncompetitive

tenders

fractions may

show

term

and

securities

bids m u s t

be

must

s h o w the

also

yield with

no t be

used.

No bidder may

the

in

two

"noncompetitive"

yi e l d .

tender

a m o u n t of

amount may

on

the

submit

not exceed

$ 1 ,000 ,000 .
3.
will

3.

All

not make

securities

of

Section

3.1.

tenders

for




bidders

any

agreements

this
for

the

must

i ssue

receipt

certify
for

prior
of

a c c o u n t of

tha t

the s ale

they

Those

customers will

not m a d e

or p u r c h a s e

to the d e a d l i n e

t e n ders.

have

be

of

any

established

authorized
required

and

in

to s u b m i t
to c e r t i f y

that

s uch

ments,

tenders

and
for

3.

4.

banks

for

t h e i r ow n

accepting

in G o v e r n m e n t

of

own

demand

submit

Others

own

5.

deposits,

conditions,
directly

agree­

by

tenders

this p u r p o s e

ar e d e f i n e d

and p r i m a r y d e a l e r s ,

as d e a l e r s

and r e p o r t

and

for

who make

daily

to the

for a c c o u n t of

the a m o u n t

markets

Federal

Reserve

on s u c h

customers

for e ach

which

primary

in and b o r r o w i n g s

are o n l y p e r m i t t e d

Tenders

account

primary
loan

dealers,

if

the

customer

are

tenders

for

to s u b m i t

holds

Stat e s ,

membership;

others

Reserve
must

securities

3.

6.

opened,

then

applied

their

of a c c e p t e d
4,

required

highest

tenders

determination

increment,

as

which

to 1 0 0 . 0 0 0

i ssue

discount

results
and

foreign

will

to

the

will

successively

be p r o r a t e d

amount
Treasury

the a m o u n t

starting

with

accepted,

average

price

T h a t rat e of

above

one

in

and

those

at

to the

Tenders

a 1/8 o f

be

and y i e l d

in full,

if n e c e s s a r y .

of

will

expressed

higher yields

in an e q u i v a l e n t
accepted

tenders

be a c c e p t e d

are

of

dealer.

reservations

tenders

o n the b a s i s

l i m i t of 9 9 . 5 0 0 .

fac e

maturing

hour,

the a m o u n t o f f e r e d .

a lowest

the

from

c h e c k s ) , or by a g u a r a n t e e

be a c c e p t e d ,

to w h i c h

or

states;

Tenders

cash,

a n n o u n c e m e n t of

tenders

and

and o t h e r p u b l i c

accounts.

the c l o s i n g

Subject

yield will

be e s t a b l i s h e d ,

close




after

through

is m a d e

and

f o r m of

savings

the U n i t e d S t a t e s

b a n k or a p r i m a r y

a public

to a t t a i n

accepted

rate will

(in the

their

subdivisions

by a d e p o s i t of 5% o f

collectible

bids.

lowest yields,

extent

for

noncompetitive

competitive

banks

and G o v e r n m e n t

Immediately
by

in w h i c h

for

institutions;

Federally-insured

their political

central

a commercial

followed

Section

above;

banking

p e n s i o n and r e t i r e m e n t

foreign

Banks;

by

and o t h e r

organizations

or r e a d i l y

such d e p osit

banks

and

be a c c o m p a n i e d

securities

range

public

international

Federal

be r e c e i v e d w i t h o u t d e p o s i t

as d e f i n e d

associations;

funds;

will

f rom c o m m e r c i a l

instrumentalities;

the

same

account.
3.

of

the

submitted

which

their positions

the c u s t o m e r s

furnished.

banks,

securities

may

tenders

are d e f i n e d

B a n k of N e w Y o r k
securities,

as

under

a c c ount.

Commercial

this p u r p o s e

names

submitted

certifications

bidders

as

are

at

the

After

the

a coupon
percent

accepted

price

the o r i g i n a l

interest will

be

paid

o n all of

price
each

on each

the

competitive

successful

price

noncompetitive

to

the y i e l d

yield

calculations

will

of p r i c e

hundred,

per

Secretary

of

e.g.,

tenders

competitive

sufficient
received

be c a r r i e d

accepted

at

of

accepted

competitive

3.

7.

of

tenders will

only

full,

or w h e n

shall

right

1.

their

or

reject

less

Section

1,

and

classes

of

applicants

public

than

to m a k e

interest.

on

the b a s i s

If

the

the

a m o u n t of

a b s o r b all or m o s t

be a c c e p t e d

of

of

the

in an a m o u n t
the yi e l d .

and F e d e r a l R e s e r v e
to the w e i g h t e d

Tenders

Banks will

average yield

Those
if the

be a d v i s e d

of

submitting

noncompetitive

tender

is no t

the a c c e p t a n c e

accepted

in

is o v e r par.

The Secretary

to a l l o t m o r e

Price

the d e t e r m i n a t i o n s

final.

bidders will

be n o t i f i e d

or

t e n ders.

t e n ders.

tenders.

the p r i c e

to a c c e p t

be

and

the

to the

to t h r e e d e c i m a l p l a c e s
99.923,

4.
4.

competitive

equivalent

Competitive

or r e j e c t i o n

to pay

equivalent

accounts

the p r i c e

and

required

a f a i r d e t e r m i n a t i o n of

be

be d e t e r m i n e d

the p r i c e

received would

from G o v e r n m e n t

the

submitting

tenders will

to p r o v i d e

be

rate,

Those

accepted

the T r e a s u r y

noncompetitive
offering,

of

bid.

pay

interest

allotted will

bidder will

tenders will

average

Based on such

tender

competitive

equivalent

weighted

securities.

RESERVATIONS
of

the T r e a s u r y

any or all
the

expressly

tenders

a m o u n t of

when

the S e c r e t a r y

The Secretary's

action

in w h o l e

securities

different percentage

reserves
or

under

in part,

specified

allotments

considers

the

it

this

in

to v a r i o u s
in the

Section

is

f inal.
5.
5.

1.

completed
Reserve

other

Settlement

on or

Bank

wherever

the

f unds

or Branch

notes

before

the

or bonds

settlement

in

the g e n e r a l

or

by




or at

tender was

to

the B u r e a u

available

(with all
date

s e c u r i t i e s m u s t be m a d e

M a y 31,

submitted.

regulations

drawn

DELIVERY

for a l l o t t e d

before Thursday,

immediately

bi l l s ,

check

PAYMENT AND

1979,
of

the P u b l i c Debt,
be

to the T r e a s u r y ;

but which

are

detached)

the

in cash;

States

institution

in

in T r e a s u r y
maturing

not overdue

governing United

the o r d e r of

at the F e d e r a l

Payment must

coupons

or

o n or

as d e f i n e d

securities;
to w h i c h

the

t e n d e r was
later

submitted,

w h i c h m u s t be

received

at

such

institution

than:
(a) T u e s d a y ,
bank

M a y 29,

1979,

if the check, is d r a w n

in the F e d e r a l R e s e r v e D i s t r i c t of

to w h i c h
Reserve

the c h e c k
District

is s u b m i t t e d

in cas e of

(the

the

Fifth

the B u r e a u

of

on

a

institution
Federal

the P u b l i c

D e b t ) , or
(b)

Friday,
bank

Checks

sentence will

after

complete where

cash

Reserve

identifying

individual's
number)

the d a t e s

registered

other documents

is n o t

the

the

payable

on

5.

2.

on

time,

of

the

the d e p o s i t

face

discretion
United

payment

3.

n o t be c o n s i d e r e d

requested

the

Service

(an

number

on

if

to the I n t e r n a l R e v e n u e
or an e m p l o y e r

When payment

is m a d e

to or r e q u i r e d of
a m o u n t of

securities

securities

the S e c r e t a r y of

Registered

identification

in s e c u r i t i e s ,
the b i d d e r

securities

a

for any

presented

and

allotted.

full p a y m e n t
the

is not c o m p l e t e d

tender,

allotted,

up to 5 p e r c e n t

shall,

the T r e a s u r y ,

securities

as a p p e a r

are

in the

surrendered.

registered

in n a m e s

inscriptions
assignment

taxpayer

Treasury




be

offered

identifying

desired,

and

the

to
by

are not

registrations
When
forms

be

at the

forfeited

this

as d e p o s i t s

required

to the

in the

the n e w s e c u r i t i e s
different

of

circular)

number)."

(securities

be

offered

the

in the

of

the

for

(name

and

in c o u p o n

"The S e c r e t a r y
this

and

to be

the T r e a s u r y

by

in

names

presented,

securities
to

of

are

in the n ame

If new

should

same

f rom t h o s e

the s e c u r i t i e s

and

to be a s s i g n e d

or a s s i g n m e n t s

"The S e c r e t a r y of

assignment

for c o u p o n

tendered

to be r e g i s t e r e d

or a s s i g n m e n t s

should

(securities

securities

securities

securities

are

are

at the

and

submitted with

for a l l o t t e d

the new

forms

of

Payment will

as r e q u i r e d

cas e w h e r e

a m o u n t of

are p a y a b l e

Stat e s .

5.

if

In e v e r y

they

returns

face
the

in the p r e c e d i n g

tax

be m a d e

between

is d r a w n o n a

District.

f orth

securities

furnished.

difference
amount

Bank.

security

adjustment will

set

unless

number

submitted

social

if the c h e c k

Federal Reserve

n o t be a c c e p t e d

Federal

appropriate

1979,

in a n o t h e r

received

applicable

Ma y 25,

of

circular)

form
the

to be

no

delivered
issuance
or

to
and

and

delivery

authorized

presented.
to

(name

address)."
of

Public Debt,
delivered
5.
the

4.

If

settlement

certificates.
and

shall

issue,

D.

5.

and

the

securities

securities

are

20 2 2 6 .

risk

The

and
of

shall

securities

interest

have

been

f o r m of

6.

1.

As

Banks

allotments
such

to r e c e i v e

be

and m a k e

agents

as d i r e c t e d

delivery

as m a y
of

is s u e d

must

be

interim

in b e a r e r

securities

of

for m

this

at any F e d e r a l
the P u b l i c D e b t ,
m u s t be

holder.

in r e g i s t e r e d

form will

r e g i s t r a t i o n has

GENERAL

authorized

notices

the

be

been validated,

been established,

and

the

inscribed.

fiscal

are

the

a c c o u n t has

of

for d e l i v e r y on

interim certificates

securities

requested

be s u r r e n d e r e d

the hold e r .

elect

of

the

the o w n e r

to the B u r e a u

available,

expense

by

for

the s e c u r i t i e s

should

The

for d e f i n i t i v e

securities

signed

are n o t r e a d y

certificates

6.

issue

r i s k of

These

C.

registered

issue

20226.

purchasers may

Delivery

after

make

C.

date,

at the

5.

Reserve

in p a y m e n t

B a n k or B r a n c h o r at the B u r e a u of

returned

the

bearer

s uch

Washington,

made

expense

accompany

or B r a n c h or

D.

be e x c h a n g e a b l e

when

Reserve

Bank

Washington,

at the

must

tendered

the F e d e r a l R e s e r v e

instructions

the ne w s e c u r i t i e s ,

representative,

Securities

Specific

of

the U n i t e d

and r e q u e s t e d
by

States,

be n e c e s s a r y ,
on

pending

full-paid

tenders,

the T r e a s u r y ,

to r e c e i v e

delivery

Federal

to r e c e i v e

the S e c r e t a r y of

securities

interim certificates

PROVISIONS

payment

allotments,
of

to
to

for

and

to

the d e f i n i t i v e

securities.
6.

2.

The

supplemental
offering.

Secretary

or a m e n d a t o r y

Public

of

the T r e a s u r y m a y

rules

announcement

of

and

at any

regulations

such

changes

time

governing

will

the

be p r o m p t l y

provided.




issue

P a u l H. T a y l o r ,
Fiscal A s s i s t a n t Secretary.