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FE D E R A L RESERVE B A N K O F N E W YO RK Fiscal Agent of the United States [ Circular No. 8 8 5 8 1 June 18, 1980 J OFFERING OF TWO SERIES OF TREASURY BILLS $3,900,000,000 of 91-Day Bills, To Be Issued June 26, 1980, Due September 25, 1980 $3,900,000,000 of 183-Day Bills, To Be Issued June 26, 1980, Due December 26, 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 The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $7,800 million, to be issued June 26, 1980. As the regular 13-week and 26-week bill maturities were issued in the amount of $6,650 million, this offering will provide the Treasury about $1,150 million new cash above the amount maturing through the regular issues. The $4,031 million of additional issue 80-day cash management bills issued April 7 and maturing June 26, 1980, will be redeemed at maturity. Department: 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 In the event that Congress fails to pass legislation to increase the who make primary markets in Government securities and report temporary limit on the public debt, the Treasury may have to reduce daily to the Federal Reserve Bank of New York their positions in the amounts offered in the auctions scheduled the week beginning and borrowings on such securities, when submitting tenders for cus Monday, June 23. The $6,650 million of regular maturities includes $1,302 million tomers, must submit a separate tender for each customer whose net currently held by Federal Reserve Banks as agents for foreign and long position in the bill being offered exceeds $200 million. Payment for the full par amount of the bills applied for must international monetary authorities, and $2,446 million currently held by Federal Reserve Banks for their own account. The two series accompany all tenders submitted for bills to be maintained on the book-entry records of the Department of the Treasury. A cash offered are as follows: 91-day bills (to maturity date) for approximately $3,900 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 March 27, 1980, and to mature September 25, 1980 determined in the auction. No deposit need accompany tenders from incorporated banks (CUSIP No. 912793 5G7), originally issued in the amount of $3,443 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. 183-day bills for approximately $3,900 million to be dated records of Federal Reserve Banks and Branches. Public announcement will be made by the Department of the June 26, 1980, and to mature December 26, 1980 (CUSIP Treasury of the amount and price range of accepted bids. Competi No. 912793 5T9). Both series of bills will be issued ior cash and in exchange for tive bidders will be advised of the acceptance or rejection of their Treasury bills maturing June 26, 1980. Tenders from Federal tenders. The Secretary of the Treasury expressly reserves the right Reserve Banks for themselves and as agents for foreign and inter to accept or reject any or all tenders, in whole or in part, and the national monetary authorities will be accepted at the weighted Secretary’s action shall be final. Subject to these reservations, average prices of accepted competitive tenders. Additional amounts noncompetitive tenders for each issue for $500,000 or less without of the bills may be issued to hederal Reserve Banks, as agents for stated price from any one bidder will be accepted in full at the foreign and international monetary authorities, to the extent that weighted average price (in three decimals) of accepted competitive the aggregate amount of tenders for such accounts exceeds the bids for the respective issues. Settlement for accepted tenders for bills to be maintained on the aggregate amount of maturing bills held by them. The bills will be issued on a discount basisunder competitive and book-entry records of Federal Reserve Banks and Branches must noncompetitive bidding, and at maturity their par amount will be be made or completed at the Federal Reserve Bank or Branch on payable without interest. Both series of bills will be issued entirely June 26, 1980, in cash or other immediately available funds or in in book-entry form in a minimum amount of $10,000 and in any Treasury bills maturing June 26, 1980. Cash adjustments will be higher $5,000 multiple, on the records either of the Federal Reserve made for differences between the par value of the maturing bills accepted in exchange and the issue price of the new bills. Banks and Branches, or of the Department of the Treasury. Tenders will be received at Federal Reserve Banks and Branches Under Sections 454(b) and 1221(5) of the Internal Revenue and at the Bureau of the Public Debt, Washington, D.C. 20226, up Code of 1954 the amount of discount at which these bills are sold to 1:30 p.m., Eastern Daylight Saving time, Monday, June 23, 1980. is considered to accrue when the bills are sold, redeemed or other Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for wise disposed of, and the bills are excluded from consideration as 13-week series) should be used to submit tenders for bills to be capital assets. Accordingly, the owner of these bills (other than maintained on the book-entry records of the Department of the life insurance companies) must include in his or her Federal in come tax return, as ordinary gain or loss, the difference between Treasury. Each tender must be for a minimum of $10,000. Tenders over the price paid for the bills, whether on original issue or on sub $10,000 must be in multiples of $5,000. In the case of competitive sequent purchase, and the amount actually received either upon sale tenders the price offered must be expressed on the basis of 100, or redemption at maturity during the taxable year for which the with not more than three decimals, e.g., 99.925. Fractions may not return is made. Department of the Treasury Circulars, Public Debt Series—Nos. be used. Banking institutions and dealers who make primary markets in 26-76 and 27-76, and this notice, prescribe the terms of these Treas Government securities and report daily to the Federal Reserve ury bills and govern the conditions of their issue. Copies of the Bank of New York their positions in and borrowings on such circulars and tender forms may be obtained from any Federal Re securities may submit tenders for account of customers, if the 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 23, 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 olomon , President. Please note that the Treasury b ills m aturing D ecem ber 26, 1980, w ill be 183-day bills. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 19, 1980) Range of Accepted Competitive Bids 9 1 -Day Treasury Bills Maturing September 18 , 1980 P r ic e H ig h ............................................... L ow ................................................ Average.......................................... 98.415a 98.380 98.390 D isc o u n t R a te 6 .2 7 0 % 6.409% 6.369% 182 -Day Treasury Bills Maturing December 18 , 1980 I n v e s tm e n t R a te 1 P r ic e 6.46% 6.60% 6.56% 96.642 b 96.626 96.632 1Equivalent coupon-issue yield, a Excepting one tender of $1,240,000. D isc o u n t R a te 6.642% 6.674% 6.662% I n v e stm e n t R a te 1 6.97% 7.00% 6.99% b Excepting one tender of $740,000. (43 percent of the amount of 91-day bills bid for at the low price was accepted.) (53 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 September 18 , 1980 By F.R. District (and US. Treasury) Received Accepted Boston....................................... $ 40,640,000 $ 28,640,000 New Y o rk ................................ 4,974,370,000 3,110,910,000 Philadelphia............................. 21,220,000 21,220,000 Cleveland.................................. 32,160,000 32,160,000 Richmond.................................. 59,300,000 59,300,000 A tlanta...................................... 33,725,000 33,725,000 Chicago..................................... 509,910,000 262,945,000 St. L ouis................................... 25,620,000 17,195,000 Minneapolis.............................. 21,840,000 21,840,000 Kansas C ity.............................. 25,320,000 25,270,000 Dallas........................................ 12,845,000 12,845,000 San Francisco........ .................. 336,580,000 154,490,000 182 -Day Treasury Bills Maturing December 18 , 1980 Received Accepted $ 21,280,000 $ 18,780,000 6,290,230,000 3,470,070,000 6,825,000 6,825,000 10,615,000 10,615,000 10,215,000 8,215,000 12,140,000 12,140,000 502,850,000 149,850,000 16,425,000 6,425,000 18,125,000 5,775,000 18,445,000 16,085,000 6,430,000 6,430,000 361,390,000 131,140,000 U.S. T reasury.......................... 120,415,000 120,415,000 59,490,000 59,490,000 T otals .............................. $6,213,945,000 $3,900,955,000 $7,334,460,000 $3,901,840,000 By class of bidder Public Competitive ......................... Noncompetitive ................... $4,268,735,000 572,705,000 $1,955,745,000 572,705,000 $4,931,285,000 220,875,000 $1,498,665,000 220,875,000 S ubtotals ....................... Federal R eserve....................... Foreign Official Institutions .... $4,841,440,000 1,080,935,000 291,570,000 $2,528,450,000 1,080,935,000 291,570,000 $5,152,160,000 1,088,000,000 1,094,300,000 $1,719,540,000 1,088,000,000 1,094,300,000 T o tals ..................................... $6,213,945,000 $3,900,955,000 $7,334,460,000 $3,901,840,000
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