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FE D E R A L R E SE R V E BANK O F N EW YORK Fiscal Agent of the United States [ O F F E R IN G OF TW O S E R IE S OF TREASURY Circular No. 8 8 3 9 1 May 28, 1980 J B IL L S $ 3 ,6 0 0 ,0 0 0 ,0 0 0 o f 9 1 -D a y B ills , T o B e I ssu e d J u n e 5 , 1 9 8 0 , D u e S e p te m b e r 4 , 1 9 8 0 $ 3 ,6 0 0 ,0 0 0 ,0 0 0 o f 1 8 2 -D a y B ills , T o B e I ssu e d J u n e 5 , 1 9 8 0 , D u e D e c e m b e r 4 , 1 9 8 0 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: 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 the auctions unless it has assurance of Congressional action on legis clude bills acquired through “when issued” trading, and futures and lation to raise the temporary debt ceiling before the scheduled auction forward transactions as well as holdings of outstanding bills with date of June 2. This offering will provide $650 million of new cash for the Treas the same maturity date as the new offering, e.g., bills with three ury as the maturing bills are outstanding in the amount of $6,565 months to maturity previously offered as six month bills. Dealers million, including $736 million currently held by Federal Reserve who make primary markets in Government securities and report Banks as agents for foreign and international monetary authorities daily to the Federal Reserve Bank of New York their positions in and $1,799 million currently held by Federal Reserve Banks for their and borrowings on such securities, when submitting tenders for cus tomers, must submit a separate tender for each customer whose net own account The two series offered are as follows: 91-day bills (to maturity date) for approximately $3,600 long position in the bill being offered exceeds $200 million. million, representing an additional amount of bills dated Payment for the full par amount of the bills applied for must March 6, 1980, and to mature September 4, 1980 (CUSIP accompany all tenders submitted for bills to be maintained on the No. 912793 5D4), currently outstanding in the amount of book-entry records of the Department of the Treasury. A cash $3,344 million, the additional and original bills to be freely adjustment will be made on all accepted tenders for the difference interchangeable. between the par payment submitted and the actual issue price as 182-day bills (to maturity date) for approximately $3,600 determined in the auction. million, representing an additional amount of bills dated No deposit need accompany tenders from incorporated banks December 11, 1979, and to mature December 4, 1980 and trust corfipanies and from responsible and recognized dealers (CUSIP No. 912793 4S2), currently outstanding in the investment securities for bills to be maintained on the book-entry amount of $4,133 million, the additional and original bills in records of Federal Reserve Banks and Branches. to be freely interchangeable. Public announcement will be made by the Department of the Both series of bills will be issued tor cash and in exchange for Treasury of the amount and price range of accepted bids. Competi Treasury bills maturing June 5, 1980. Tenders from Federal bidders will be advised of the acceptance or rejection of their Reserve Banks for themselves and as agents for foreign and inter tive tenders. The Secretary of the Treasury expressly reserves the right national monetary authorities will be accepted at the weighted to accept or reject any or all tenders, in whole or in part, and the average prices of accepted competitive tenders. Additional amounts Secretary’s action shall be final. Subject to these reservations, of the bills may be issued to federal Reserve Banks, as agents for noncompetitive tenders for each issue for $500,000 or less without foreign and international monetary authorities, to the extent that stated price from any one bidder will be accepted in full at the the aggregate amount of tenders for such accounts exceeds the weighted average price (in three decimals) of accepted competitive aggregate amount of maturing bills held by them. bids for the respective issues. The bills will be issued on a discount basis under competitive and Settlement for accepted tenders for bills to be maintained on the noncompetitive bidding, and at maturity their par amount will be book-entry records of Federal Reserve Banks and Branches must payable without interest. Both series of bills will be issued entirely be made or completed at the Federal Reserve Bank or Branch on in book-entry form in a minimum amount of $10,000 and in any June 5, 1980, in cash or other immediately available funds or in higher $5,000 multiple, on the records either of the Federal Reserve Treasury bills maturing June 5, 1980. Cash adjustments will be Banks and Branches, or of the Department of the Treasury. made for differences between the par value of the maturing bills Tenders will be received at Federal Reserve Banks and Branches accepted in exchange and the issue price of the new bills. and at the Bureau of the Public Debt, Washington, D.C. 20226, up Under Sections 454(b) and 1221(5) of the Internal Revenue to 1:30 p m., Eastern Daylight Saving time, Monday, June 2, 1980. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for Code of 1954 the amount of discount at which these bills are sold 13-week series) should be used to submit tenders for bills to be is considered to accrue when the bills are sold, redeemed or other maintained on the book-entry records of the Department of the wise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner of these bills (other than Treasury. Each tender must be for a minimum of $10,000. Tenders over life insurance companies) must include in his or her Federal in $10,000 must be in multiples of $5,000. In the case of competitive come tax return, as ordinary gain or loss, the difference between tenders the price offered must be expressed on the basis of 100, the price paid for the bills, whether on original issue or on sub with not more than three decimals, e.g., 99.925. Fractions may not sequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the be used. Banking institutions and dealers who make primary markets in return is made. Department of the Treasury Circulars, Public Debt Series—Nos. Government securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such 26-76 and 27-76, and this notice, prescribe the terms of these Treas securities may submit tenders for account of customers, if the ury bills and govern the conditions of their issue. Copies of the names of the customers and the amount for each customer are circulars and tender forms may be obtained from any Federal Re furnished. Others are only permitted to submit tenders for their 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, June 2, 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. The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $7,200 million, to be issued June 5, 1980. The Treasury w ill postpone A n t h o n y M . S olom on, President. ( over) R E S U L T S O F L A S T W E E K L Y O F F E R IN G O F T R E A S U R Y B IL L S (T W O S E R IE S T O B E IS S U E D M A Y 2 9 , 1 9 8 0 ) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing August 28,1980 Price H igh........................ .................... Low......................... .................... Average................... ..................... 98.101 98.043 98.060 183-Day Treasury Bills Maturing November 28,1980 Investment R ate 1 Discount Rate 7.513% 7.742% 7.675% Price 7.76% 8.01% 7.94% 96.146 96.035 96.059 Discount Rate Investment R ate 1 7.582% 7.800% 7.753% 8.00% 8.23% 8.18% 1 Equivalent coupon-issue yield. (74 percent of the amount of 91-day bills bid for at the low price was accepted.) (82 percent of the amount of 183-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing August 28, 1980 By F.R. D istrict (and U S . Treasury) Boston................................... New York............................. Philadelphia........................... Cleveland............................... Richmond.............................. Atlanta................................... Chicago.................................. St. Louis................................ Minneapolis........................... Kansas City............................ Dallas..................................... San Francisco........................ U .S. Treasury........................ T o t a l s ........................... Received $ 52,020,000 4,802,985,000 22,185,000 77,145,000 25,490,000 51,345,000 351,860,000 22,455,000 21,285,000 40,890,000 14,955,000 376,845,000 98,430,000 $5,957,890,000 183-Day Treasury Bills Maturing November 28,1980 Received Accepted $ 26,020,000 2,856,085,000 22,185,000 26,225,000 25,490,000 36,345,000 121,860,000 13,455,000 16,275,000 40,890,000 14,955,000 201,845,000 98,430,000 $3,500,060,000 $ 43,530,000 4,592,890,000 9,345,000 14,165,000 16,745,000 18,485,000 358,465,000 19,730,000 21,530,000 24,685,000 6,045,000 401,660,000 65,585,000 $5,592,860,000 $ 23,530,000 2,878,090,000 9,345,000 14,165,000 16,745,000 18,485,000 52,565,000 13,190,000 11,530,000 24,685,000 6,045,000 366,760,000 65,585,000 $3,500,720,000 $1,676,870,000 544,895,000 $2,221,765,000 935,000,000 343,295,000 $3,500,060,000 $3,880,070,000 276,445,000 $4,156,515,000 942,340,000 494,005,000 $5,592,860,000 $1,787,930,000 276,445,000 $2,064,375,000 942,340,000 494,005,000 $3,500,720,000 Accepted By class of bidder Public Competitive ....................... $4,134,700,000 544,895,000 Noncompetitive ................. $4,679,595,000 S u b t o t a l s ..................... 935,000,000 Federal Reserve..................... 343,295,000 Foreign Official Institutions .... T otals ................ $5,957,890,000 An additional $94,655 thousand of 13-week bills and an additional $126,795 thousand of 26-week bills will be issued to foreign official institutions for new cash.
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