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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States No. 8 8 1 5 * 1 [ Circular April 30, 1980 J OFFERING OF TWO SERIES OF TREASURY BILLS $3,500,000,000 of 91-Day Bills, To Be Issued May 8, 1980, Due August 7, 1980 $3,500,000,000 of 182-Day Bills, To Be Issued May 8, 1980, Due November 6, 1980 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict : Following is the text of a notice issued by the Treasury Department: The Department of the Treasury, by this public notice, invites position in the bills being offered if such position is in excess of $200 tenders for two series of Treasury bills totaling approximately million. This information should reflect positions held at the close of $7,000 million, to be issued May 8, 1980. This offering will provide business on the day prior to the auction. Such positions would in $600 million of new cash for the Treasury as the maturing bills clude bills acquired through “when issued” trading, and futures and are outstanding in the amount of $6,370 million, including $1,286 forward transactions as well as holdings of outstanding bills with million currently held by Federal Reserve Banks as agents for for the same maturity date as the new offering, e.g., bills with three eign and international monetary authorities, and $1,586 million cur months to maturity previously offered as six month bills. Dealers rently held by Federal Reserve Banks for their own account. The who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions in two series offered are as follows: 91-day bills (to maturity date) for approximately $3,500 and borrowings on such securities, when submitting tenders for cus million, representing an additional amount of bills dated tomers, must submit a separate tender for each customer whose net February 7, 1980, and to mature August 7, 1980 (CUSIP long position in the bill being offered exceeds $200 million. No. 912793 4Z6), currently outstanding in the amount of Payment for the full par amount of the bills applied for must $3,231 million, the additional and original bills to be accompany all tenders submitted for bills to be maintained on the book-entry records of the Department of the Treasury. A cash freely interchangeable. 182-day bills (to maturity date) for approximately $3,500 adjustment will be made on all accepted tenders for the. difference million, representing an additional amount of bills dated between the par payment submitted and the actual issue price as November 13, 1979, and to mature November 6, 1980 determined in the auction. (CUSIP No. 912793 4R4), currently outstanding in the No deposit need accompany tenders from incorporated banks amount of $3,903 million, the additional and original bills and trust companies and from responsible and recognized dealers in investment securities for bills to be maintained on the book-entry to be freely interchangeable. Both series of bills will be issued for cash and in exchange for records of Federal Reserve Banks and Branches. Treasury bills maturing May 8, 1980. Tenders from Federal Public announcement will be made by the Department of the Reserve Banks for themselves and as agents for foreign and inter Treasury of the amount and price range of accepted bids. Competi national monetary authorities will be accepted at the weighted tive bidders will be advised of the acceptance or rejection of their average prices of accepted competitive tenders. Additional amounts tenders. The Secretary of the Treasury expressly reserves the right of the bills may be issued to Federal Reserve Banks, as agents of to accept or reject any or all tenders, in whole or in part, and the foreign and international monetary authorities, to the extent that Secretary’s action shall be final. Subject to these reservations, the aggregate amount of tenders for such accounts exceeds the noncompetitive tenders for each issue for $500,000 or less without aggregate amount of maturing bills held by them. stated price from any one bidder will be accepted in full at the The bills will be issued on a discount basis under competitive and weighted average price (in three decimals) of accepted competitive noncompetitive bidding, and at maturity their par amount will be bids for the respective issues. payable without interest. Both series of bills will be issued entirely Settlement for accepted tenders for bills to be maintained on the in book-entry form in a minimum amount of $10,000 and in any book-entry records of Federal Reserve Banks and Branches must higher $5,000 multiple, on the records either of the Federal Reserve be made or completed at the Federal Reserve Bank or Branch on Banks and Branches, or of the Department of the Treasury. May 8, 1980, in cash or other immediately available funds or Tenders will be received at Federal Reserve Banks and Branches in Treasury bills maturing May 8, 1980. Cash adjustments will and at the Bureau of the Public Debt, Washington, D.C. 20226, up be made for differences between the par value of the maturing bills to 1 :30 p.m., Eastern Daylight Saving time, Monday, May 5, 1980. accepted in exchange and the issue price of the new bills. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for Under Sections 454(b) and 1221(5) of the Internal Revenue 13-week series) should be used to submit tenders for bills to be Code of 1954 the amount of discount at which these bills are sold maintained on the book-entry records of the Department of the is considered to accrue when the bills are sold, redeemed or other Treasury. wise disposed of, and the bills are excluded from consideration as Each tender must be for a minimum of $10,000. Tenders over capital assets. Accordingly, the owner of these bills (other than $10,000 must be in multiples of $5,000. In the case of competitive life insurance companies) must include in his or her Federal in tenders the price offered must be expressed on the basis of 100, come tax return, as ordinary gain or loss, the difference between with not more than three decimals, e.g., 99.925. Fractions may not the price paid for the bills, whether on original issue or on sub sequent purchase, and the amount actually received either upon sale be used. Banking institutions and dealers who make primary markets in or redemption at maturity during the taxable year for which the Government securities and report daily to the Federal Reserve return is made. Bank of New York their positions in and borrowings on such Department of the Treasury Circulars, Public Debt Series—Nos. securities may submit tenders for account of customers, if the 26-76 and 27-76, and this notice, prescribe the terms of these Treas names of the customers and the amount for each customer are ury bills and govern the conditions of their issue. Copies of the furnished. Others are only permitted to submit tenders for their circulars and tender forms may be obtained from any Federal Re own account. Each tender must state the amount of any net long 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, May 5, 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 “Ten der for Treasury Bills.” Forms for submitting tenders directly to the Treasury are available from the Government Bond 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. A n t h o n y M. S o l o m o n , President. RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MAY 1, 1980) Range of Accepted C om petitive Bids 9 1 -Day Treasury Bills Maturing July 3 1 , 1980 H ig h .............................. ............... L ow ............................... ................ Average......................... ................ 182 -Day Treasury Bills Maturing October 30,1980 Price Discount Rate Investment R at el Price Discount Rate Investment R at el 97.285 97.257 97.273 10.741% 10.851% 10.788% 11.19% 11.31% 11.24% 94.567 94.520 94.545 10.747% 10.840% 10.790% 11.52% 11.63% 11.57% 1 Equivalent coupon-issue yield. (57 percent of the amount of 91-day bills bid for at the low price was accepted.) (87 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders R eceived and Accepted 182 -Day Treasury Bills Maturing October 30,1980 9 1 -Day Treasury Bills Maturing July 3 1 , 1980 By F.R. D istrict (and U S . Treasury) Boston....................................... New Y o rk ................................ Philadelphia............................. Cleveland.................................. Richmond................................. A tlanta...................................... Chicago..................................... St. L ouis................................... Minneapolis.............................. Kansas C ity .............................. D allas........................................ San Francisco........................... Received $ 51,065,000 5,445,795,000 45,610,000 53,960,000 41,050,000 57,465,000 455,895,000 52,235,000 19,170,000 43,055,000 30,545,000 399,265,000 Received Accepted $ 44,565,000 2,837,005,000 42,620,000 43,945,000 35,050,000 54,430,000 98,805,000 25,235,000 11,160,000 37,705,000 30,545,000 108,515,000 $ 57,360,000 5,246,420,000 119,130,000 38,045,000 48,945,000 47,525,000 384,095,000 45,420,000 16,845,000 39,830,000 13,165,000 539,510,000 Accepted $ 57,360,000 2.766,770,000 94,130,000 38,045,000 48,445,000 42,180,000 100,645,000 17,420,000 8,845,000 32,160,000 13,165,000 158,510,000 U.S. T reasury.......................... 130,895,000 130,895,000 122,800,000 122,800,000 .............................. $6,826,005,000 $3,500,475,000 $6,719,090,000 $3,500,475,000 $4,716,455,000 816.800,000 $1,390,925,000 816,800,000 $4,885,940,000 598,350,000 $1,667,325,000 598,350,000 Federal R eserve....................... Foreign Official Institutions .... $5,533,255,000 933,640,000 359,110,000 $2,207,725,000 933,640,000 359,110,000 $5,484,290,000 934,000,000 300,800,000 $2,265,675,000 934.000,000 300,800,000 T otals ............. $6,826,005,000 $3,500,475,000 $6,719,090,000 $3,500,475,000 T otals B y class of bidder Public Competitive ......................... Noncompetitive ................... S ubtotals ..................................
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