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FED ER AL RESERVE BANK O F NEW YORK
Fiscal Agent of the United States
C ircular No. 8 7 4 2 "I
Ja n u a ry 23, 1980

[

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OFFERING OF TWO SERIES OF TREASURY BILLS
$3,200,000,000 of 91-Day Bills, Additional Amount, Series Dated November 1, 1979, Due May 1, 1980
(To Be Issued January 31, 1980)
$3,200,000,000 of 182-Day Bills, Dated January 31, 1980, Due July 31, 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 D epartm ent:
The Department of the Treasury, by this public notice, invites
tenders for two series of Treasury bills totaling approximately
$6,400 million, to be issued January 31, 1980. This offering will
provide $300 million of new cash for the Treasury as the maturing
bills are outstanding in the amount of $6,161 million, including $720
million currently held by Federal Reserve Banks as agents for
foreign and international monetary authorities and $1,926 million
currently held by Federal Reserve Banks for their own account.
The two series offered are as follows:
91-day bills (to maturity date) for approximately $3,200
million, representing an additional amount of bills dated
November 1, 1979, and to mature May 1, 1980 (C U SIP
No. 912793 4C7), originally issued in the amount of
$3,150 million, the additional and original bills to be
freely interchangeable.
182-day bills for approximately $3,200 million to be dated
January 31, 1980, and to mature July 31, 1980 (C U SIP
No. 912793 4Y9).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing January 31, 1980. Tenders from Federal
Reserve Banks for themselves and as agents of foreign and inter­
national monetary authorities will be accepted at the weighted
average prices of accepted competitive tenders. Additional amounts
of the bills may be issued to Federal Reserve Banks, as agents of
foreign and international monetary authorities, to the extent that
the aggregate amount of tenders for such accounts exceeds the
aggregate amount of maturing bills held by them.
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 Standard time, Monday, January 28, 1980.
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
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
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
January 31, 1980, in cash or other immediately available funds or
in Treasury bills maturing January 31, 1980. Cash adjustments
will be made for differences between the par value of the matur­
ing 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 Standard time, Monday, January 28,
1980, 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 “T en­
der for T reasury Bills.” Form s 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 w rit­
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 T reasury bills are shown on the reverse side of this circular.




T hom as M. T im l e n ,

First Vice President.
(

o v e r

)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED JANUARY 24, 1980)

Range of Accepted Competitive Bids
9 1 -Day Treasury Bills
Maturing April 24, 1980
Price

H igh..........................................
Low...........................................
Average.....................................

96.923
96.917
96.919

Discount
Rate
12.17 3 %

12.196%
12.189%

182 -Day Treasury Bills
Maturing July 24,1980

Investment
Rate 1

Price

Discount
Rate

Investment
Rate 1

12.77%
12.79%
12.79%

93.999
93.987
93.991

11.870%
11.894%
11.886%

12.84%
12.87%
12.86%

1 Equivalent coupon-issue yield.

(5 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(66 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 April 24,1980
By F.R. District (and U S . Treasury)

B oston......................................... .
New Y o rk ...................................
Philadelphia...............................
C leveland.....................................
R ichm ond....................................
A tla n ta .........................................
C hicago........................................
St. L o u is......................................
M inneapolis................................
Kansas C ity ................................
D allas...........................................
San F ran cisco.............................

Received

$

92,905,000
5,242,110,000
107,430,000
94,240,000
45,115,000
59,795,000
544,270,000
36,775,000
12,140,000
38,670,000
23,975,000
284,295,000

Accepted

$

182 -Day Treasury Bills
Maturing July 24, 1980
Received

64,555,000
2,603,715,000
31,715,000
43,150,000
42,695,000
55,520,000
75,345,000
23,475,000
9,140,000
34,545,000
22,975,000
108,545,000

$ 100,810,000
5,298,770,000
18,485,000
66,890,000
39,860,000
37,610,000
501,610,000
33,265,000
9,940,000
44,150,000
12,250,000
279,480,000

Accepted

$

45,810,000
2,653,480,000
18,485,000
49,205,000
38,360,000
37,610,000
86,110,000
21,265,000
6,940,000
39,275,000
12,250,000
111,480,000

U.S. T re a su ry ............................

84,680,000

84,680,000

80,320,000

80,320,000

................................

$6,666,400,000

$3,200,055,000

$6,523,440,000

$3,200,590,000

Public
Competitive ...........................
Noncompetitive .....................

$4,861,065,000
770,945,000

$1,594,720,000
770,945,000

$4,621,920,000
562,155,000

$1,499,070,000
562,155,000

S u b t o t a l s .........................
Federal R eserv e.........................
Foreign Official Institutions ....

$5,632,010,000
914,700,000
119,690,000

$2,365,665,000
714,700,000
119,690,000

$5,184,075,000
915,000,000
424,365,000

$2,061,225,000
715,000,000
424,365,000

$6,666,400,000

$3,200,055,000

$6,523,440,000

$3,200,590,000

T

otals

By class of bidder

T

otals

........................................

An additional $7,820 thousand of 13-week bills and an additional $16,235 thousand of 26-week bills will be
issued to foreign official institutions for new cash.