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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States Circular No. 8 6 7 9 1 November 14, 1979 [ J OFFERING OF TWO SERIES OF TREASURY BILLS $3,100,000,000 of 90-Day Bills, Additional Amount, Series Dated August 23,1979, Due February 21,1980 (To Be Issued November 23, 1979) $3,100,000,000 of 181-Day Bills, Dated November 23, 1979, Due May 22, 1980 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 months to maturity previously offered as six month bills. Dealers tenders for two series of Treasury bills totaling approximately who make primary markets in Government securities and report $6,200 million, to be issued November 23, 1979. This offering will daily to the Federal Reserve Bank of New York their positions in provide $300 million of new cash for the Treasury as the maturing and borrowings on such securities, when submitting tenders for cus bills are outstanding in the amount of $5,922 million. The two series tomers, must submit a separate tender for each customer whose net long position in the bill being offered exceeds $200 million. offered are as follows: Payment for the full par amount of the bills applied for must 90-day bills (to maturity date) for approximately $3,100 million, representing an additional amount of bills dated accompany all tenders submitted for bills to be maintained on the August 23, 1979, and to mature February 21, 1980 book-entry records of the Department of the Treasury. A cash (CUSIP No. 912793 3S3), originally issued in the adjustment will be made on all accepted tenders for the difference amount of $3,017 million, the additional and original bills between the par payment submitted and the actual issue price as determined in the auction. to be freely interchangeable. No deposit need accompany tenders from incorporated banks 181-day bills for approximately $3,100 million to be dated November 23, 1979, and to mature May 22, 1980 (CUSIP and trust companies and from responsible and recognized dealers in investment securities for bills to be maintained on the book-entry No. 912793 4F0). of Federal Reserve Banks and Branches. A deposit of Both series of bills will be issued for cash^and in exchange for 2records percent of the par amount of the bills applied for must accom Treasury bills maturing November 23, 1979. Federal Reserve pany tenders for such bills from others, unless an express guaranty Banks, for themselves and as agents of foreign and international payment by an incorporated bank or trust company accompanies monetary authorities, presently hold $2,810 million of the maturing of bills. These accounts may exchange bills they hold for the bills now the tenders. Public announcement will be made by the Department of the being offered at the weighted average prices of accepted competi Treasury of the amount and price range of accepted bids. Competi tive tenders. bidders will be advised of the acceptance or rejection of their The bills will be issued on a discount basis under competitive and tive tenders. The Secretary of the Treasury expressly reserves the right noncompetitive bidding, and at maturity their par amount will be to accept or reject any or all tenders, in whole or in part, and the payable without interest. Both series of bills will be issued entirely Secretary’s action shall be final. Subject to these reservations, in book-entry form in a minimum amount of $10,000 and in any noncompetitive tenders for each issue for $500,000 or less without higher $5,000 multiple, on the records either of the Federal Reserve stated price from any one bidder will be accepted in full at the Banks and Branches, or of the Department of the Treasury. weighted average price (in three decimals) of accepted competitive Tenders will be received at Federal Reserve Banks and Branches bids for the respective issues. and at the Bureau of the Public Debt, Washington, D.C. 20226, up Settlement for accepted tenders for bills to be maintained on the to 1:30 p.m., Eastern Standard time, Monday, November 19, 1979. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for book-entry records of Federal Reserve Banks and Branches must 13-week series) should be used to submit tenders for bills to be be made or completed at the Federal Reserve Bank or Branch on maintained on the book-entry records of the Department of the November 23, 1979, in cash or other immediately available funds or in Treasury bills maturing November 23, 1979. Cash adjustments T reasury. be made for differences between the par value of the matur Each tender must be for a minimum of $10,000. Tenders over will $10,000 must be in multiples of $5,000. In the case of competitive ing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b) and 1221(5) of the Internal Revenue 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 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 be used. disposed of, and the bills are excluded from consideration as Banking institutions and dealers who make primary markets in wise assets. Accordingly, the owner of these bills (other than Government securities and report daily to the Federal Reserve capital insurance companies) must include in his or her Federal in Bank of New York, their positions in and borrowings on such life tax return, as ordinary gain or loss, the difference between securities may submit tenders for account of customers, if the comeprice paid for the bills, whether on original issue or on sub names of the customers and the amount of each customer are the sequent purchase, and the amount actually received either upon sale furnished. Others are only permitted to submit tenders for their or redemption at maturity during the taxable year for which the 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 return is made. Department of the Treasury Circulars, Public Debt Series—Nos. million. This information should reflect positions held at the close of business on the day prior to the auction. Such positions would in 26-76 and 27-76, and this notice, prescribe the terms of these Treas clude bills acquired through “when issued” trading, and futures and ury bills and govern the conditions of their issue. Copies of the forward transactions as well as holdings of outstanding bills with circulars and tender forms may be obtained from any Federal Re the same maturity date as the new offering, e.g., bills with three 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 Standard time, Monday, November 19, 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 are shown on the reverse side of this circular. T M . T , First Vice President. h o m a s im l e n Please note that the current offering is for 90-day and 181-day Treasury bills. ( o ver) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 15, 1979) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing February 14 ,1 9 8 0 Price H ig h .... L o w ...... Average 96.992 96.940 96.960 Discount Rate 11.900% 12.105% 12.026% 18 2 -Day Treasury Bills Maturing May 1 5 ,1 9 8 0 Investment R a te 1 Price 12.47% 12.70% 12.61% 94.016 93.938 93.961 Discount Rate 11.836% 11.991% 11.945% Investment R a te 1 12.80% 12.98% 12.92% 1 Equivalent coupon-issue yield. (14 percent of the amount of 91-day bills bid for at the low price was accepted.) (28 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 9 1 -Day Treasury Bills Maturing February 14 ,1 9 8 0 By F.R. District (and U S . Treasury) B o ston ......................................... . New Y o rk .................................. Philadelphia............................... Cleveland.................................... Richmond.................................... A tlan ta......................................... Chicago........................................ St. L o u is...................................... Minneapolis................................ Kansas C ity ................................ D alla s........................................... San Francisco............................ Received $ 35,395,000 3,535,450,000 23,510,000 27,535,000 29,130,000 45,080,000 316,850,000 44,785,000 11,535,000 50,100,000 17,150,000 215,190,000 18 2 -Day Treasury Bills Maturing May 1 5 ,1 9 8 0 Received Accepted $ 35,395,000 2,437,450,000 23,510,000 27,535,000 29,130,000 45,080,000 191,850,000 26,485,000 11,535,000 50,100,000 17,150,000 170,190,000 $ 36,040,000 4,220,740,000 16,445,000 21,325,000 29,480,000 47,205,000 336,800,000 37,980,000 12,245,000 26,670,000 12,830,000 197,450,000 Accepted $ 36,005,000 2,463,660,000 16,445,000 21,325,000 29,480,000 45,975,000 214,300,000 18,980,000 12,245,000 26,670,000 12,830,000 142,450,000 U .S. T reasu ry ............................ 34,860,000 34,860,000 59,760,000 59,760,000 ................................ $4,386,570,000 $3,100,270,000 $5,054,970,000 $3,100,125,000 Public Competitive ........................... Noncompetitive .................... $2,699,010,000 548,545,000 $1,412,710,000 548,545,000 $3,168,180,000 422,790,000 $1,213,335,000 422,790,000 S u b t o t a l s ............................... $3,247,555,000 $1,961,255,000 $3,590,970,000 $1,636,125,000 Federal Reserve, and Foreign Official Institutions .............. 1,139,015,000 1,139,015,000 1,464,000,000 1,464,000,000 $4,386,570,000 $3,100,270,000 $5,054,970,000 $3,100,125,000 T otals By class of bidder T otals .......................................
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