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FE D E R A L R ESER VE B A N K O F N E W YORK Fiscal Agent of the United States [ Circular No. 8 6 0 5 July 18, 1979 1 J O F F E R I N G O F T W O S E R IE S O F T R E A S U R Y B IL L S $ 3 ,0 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y B ills , A d d itio n a l A m o u n t, S eries D a te d A p r il 2 6 , 1 9 7 9 , D u e O cto b er 2 5 , 1 9 7 9 ( T o B e Issu e d J u ly 2 6 , 1 9 7 9 ) $ 3 ,0 0 0 ,0 0 0 ,0 0 0 o f 1 8 2 -D a y B ills , D a te d J u ly 2 6 , 1 9 7 9 , D u e J a n u a r y 2 4 , 1 9 8 0 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: F o llo w in g is th e te x t o f a n o tic e issu e d by th e T r e a su r y D ep a r tm e n t: 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 July 26, 1979. This offering will not provide new cash for the Treasury as the maturing bills are out standing in the amount of $6,020 million. 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 April 26, 1979, and to mature October 25, 1979 (CUSIP No. 912793 2S4), originally issued in the amount of $3,009 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $3,000 million to be dated July 26, 1979, and to mature January 24, 1980 (CUSIP No. 912793 3N4). Both series of bills will be issued for cash and in exchange for Treasury bills maturing July 26, 1979. Federal Reserve Banks, for themselves and as agents of foreign and international monetary authorities, presently hold $2,564 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 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. Each tender must state the amount of any net long position 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 1 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 26, 1979, in cash or other immediately available funds or in Treasury bills maturing July 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 Of other wise disposed of, and the bills are excluded from considera(iorh aj capital assets. Accordingly, the owner of these bills (other ^an life insurance companies) must include in his or her Federa^ 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. T h is B an k w ill rece iv e ten d e rs for both se rie s up to 1 :30 p .m ., E a ste rn D a y lig h t S a v in g tim e, M o n d ay, J u ly 23, 1979, at the S ecu r itie s D ep a rtm en t of its H e a d O ffice an d its B u ffa lo B ran ch . T e n d e r fo r m s for the resp ective series are en closed . P le a se u se the a p p rop riate fo rm s to su b m it ten d e rs and return them in the en clo sed en v e lo p e m arked “ T e n der for T r ea su ry B ills .” F o r m s fo r su b m ittin g ten d ers d ire ctly to the T r e a su r y a re availab le fro m the T r ea su ry and A g e n c y Issu e s D iv isio n o f th is B an k . T e n d e r s not r e q u ir in g a d ep o sit m ay be su b m itted by teleg ra p h , su b ject to w r it ten c o n fo r m a tio n ; no ten d ers m a y be su b m itted b y tele p h o n e . 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. R e su lts o f th e la st w e e k ly o ffe rin g o f T r e a su r y b ills a re sh o w n on th e rev erse sid e o f th is circular. P au l A. V olcker, President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 19, 1979) Range of Accepted Competitive Bids gi-Day Treasury Bills Maturing October 18 ,19 7 9 Price Discount Rate 18 2 -Day Treasury Bills Maturing January 17 , 1980 Investment Rate 1 Price Discount Rate Investment Rate 1 H i g h ........................................................... 9 7 .6 4 7 a 9 .3 0 9 % 9.6 9 % 9 5 .3 4 9 L o w ............................................................. 9 7 .6 3 6 9 .3 5 2 % 9.7 4 % 9 5 .3 0 4 9 .2 0 0 % 9 .2 8 9 % 9.91 % A v e r a g e .................................................... 9 7 .6 4 0 9 .3 3 6 % 9 .7 2 % 95 .3 2 1 9 .2 5 5 % 9.8 7 % 9.8 1 % 1 Equivalent coupon-issue yield. a Excepting one tender of $10,000. ( 2 3 p ercen t of th e am o u n t of 182 -d a y b ills bid fo r at th e lo w p rice w a s a cc ep ted .) ( 1 9 p ercen t o f th e a m o u n t o f 9 1 -d ay b ills b id for at th e lo w p rice w a s a c c e p te d .) Total Tenders Received and Accepted gi-Day Treasury Bills Maturing October 18 ,19 7 9 18 2 -Day Treasury Bills Maturing January 17 ,19 8 0 Received 47,055,000 3,335,335,000 17,675,000 24,500,000 22,635,000 29,130,000 258,755,000 27,910,000 20,995,000 31,775,000 13,920,000 247,720.000 Accepted 27,055.000 2,460,585,000 17,675,000 24,500,000 22,635,000 29,130,000 143,755,000 21,910,000 20,995,000 31,775,000 13,920,000 142,720,000 Received By F. R. District (and U.S. Treasury) B o sto n ......................................... $ 57,140,000 3,838,865,000 New Y o rk .................................. 26,885,000 Philadelphia............................... 35,360,000 Cleveland..................................... 33,890,000 R ichm ond.................................... 44,860,000 A tla n ta ......................................... 214,135,000 C hicago........................................ 29,070,000 St. L o u is...................................... 20,895,000 M inneapolis................................ 32,130,000 Kansas C ity ................................ 16,860,000 D allas........................................... 338,110,000 San F ran cisco ............................ Accepted $ 37,140,000 2,365,145,000 26,885,000 35,360,000 32,040,000 44,860,000 85,035,000 19,070,000 20,895,000 29,900,000 16,860,000 148,110,000 U.S. T re a s u ry ............................ 39,075,000 39,075,000 43,985,000 43,985,000 T otals ................................ $4,727,275,000 $2,900,375,000 $4,121,390,000 $3,000,640,000 By class of bidder Public Competitive ........................... Noncompetitive ..................... $2,745,290,000 547,945,000 $ 918,390,000 547,945,000 $2,635,765,000 432,870,000 $1,515,015,000 432,870,000 S ubtotals ......................... Federal Reserve, and Foreign Official Institutions .............. $3,293,235,000 $1,466,335,000 $3,068,635,000 $1,947,885,000 1,434,040,000 1,434,040,000 1,052,755,000 1,052,755,000 T otals ................................. $4,727,275,000 $2,900,375,000 $4,121,390,000 $3,000,640,000 $ $
@FedFRASER