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FED ER A L R ESER VE BAN K O F N E W YORK Fiscal Agent of the United States [ Circular No. 8 5 9 8 T July 3, 1979 J OFFERING OF TWO SERIES OF TR EA SUR Y BILLS $2,900,000,000 of 91-Day B ills, Additional Am ount, Series Dated A pril 12, 1979, Due October 11, 1979 (To Be Issued July 12, 1979) $3,000,000,000 of 182-Day B ills, Dated July 12, 1979, Due January 10, 1980 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 $5,900 million, to be issued July 12, 1979. This offering will not provide new cash for the Treasury as the maturing bills are out standing in the amount of $5,926 million. The two series offered are as follows: 91-day bills (to maturity date) for approximately $2,900 million, representing an additional amount of bills dated April 12, 1979, and to mature October 11, 1979 (C U SIP No. 912793 2Q8), originally issued in the amount of $3,018 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,000 million to be dated July 12, 1979, and to mature January 10, 1980 (C U SIP No. 912793 3L8). Both series of bills will be issued for cash and in exchange for Treasury bills maturing July 12, 1979. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,384 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, July 9, 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 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. Each tender must state the amount of any net long l>osition in the bills being offered if such position is in excess of $200 million. This information should reflect positions held at the close of business on the day prior to the auction. Such positions would in clude bills acquired through “when issued” trading, and futures and forward transactions as well as holdings of outstanding bills with the same maturity date as the new offering, e.g., bills with three months to maturity previously offered as six month bills. 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, when submitting tenders for cus tomers, must submit a separate tender for each customer whose net long position in the bill being offered exceeds $200 million. 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 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 on July 12, 1979, in cash or other immediately available funds or in Treasury bills maturing July 12, 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, July 9, 1979, at the Securities Department 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 conffirmation; 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 iti maturing Treasury bills. Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. P aul A. V olcker, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 5, -1979) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing October 4, 1979 Price H ig h ............................... .................. L o w ................................ .................. A verage............................................ 97.751* 97.727 97.733 182 -Day Treasury Bills Maturing January 3 , 1980 Discount Rate Investment Rate 1 Price Discount Rate Investment Rate 1 8.897% 8.992% 8.968% 9.25% 9.35% 9.33% 95.526 95.511 95.517 8.850% 8.879% 8.867% 9.42% 9.45% 9.44% 1 Equivalent coupon-issue yield. a Excepting two tenders totaling $50,000. (63 percent of the amount of 91-day bills bid for at the low price was accepted.) (54 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91 -Day Treasury Bills Maturing October 4 , 1979 ByF.R. District (and US. Treasury) Received Boston................................... $ 38,845,000 New York.............................. 3,698,340,000 20,445,000 Philadelphia........................... 29,045,000 Cleveland............................... Richmond.............................. 22,660,000 Atlanta................................... 33,295,000 Chicago.................................. 243,125,000 St. Louis................................ 40,240,000 Minneapolis........................... 16,185,000 Kansas City............................ 26,295,000 Dallas..................................... 11.455,000 San Francisco........................ 245,120,000 U.S. Treasury........................ 22,900,000 Accepted 182 -Day Treasury Bills Maturing January 3 , 1980 Received Accepted 38,845,000 2,306,890,000 20,445,000 29,045,000 22,660,000 33,295,000 133,125,000 19,240,000 16,185,000 26,295,000 11,455,000 220,120,000 $ 77,305,000 4,506,945,000 16,510,000 26,365,000 33,790,000 28,540,000 218,110,000 36,485,000 18,255,000 26,440,000 12,045,000 277,075,000 22,900,000 24,380,000 24,380,000 $4,447,950,000 $2,900,500,000 $5,302,245,000 $3,000,095,000 Public Competitive ....................... Noncompetitive ................. $2,792,915,000 435,500,000 $1,245,465,000 435,500,000 $3,811,470,000 350,375,000 $1,509,320,000 350,375,000 S u b t o t a l s ................................ $3,228,415,000 $1,680,965,000 $4,161,845,000 $1,859,695,000 Federal Reserve, and Foreign Official Institutions............ 1,219,535,000 1,219,535,000 1,140,400,000 1,140,400,000 $4,447,950,000 $2,900,500,000 $5,302,245,000 $3,000,095,000 T o t a l s ......................................... $ $ 27,305,000 2,650,345,000 16,510,000 14,365,000 33,790,000 27,030,000 42,110,000 12,485,000 16,415,000 25,440,000 10,045,000 99,875,000 By class of bidder T otals .................................... .
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