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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States [ O F F E R IN G $ 4 ,0 0 0 ,0 0 0 ,0 0 0 OF TW O S E R IE S OF TREASURY Circular No. 8 8 7 0 July 9, 1980 B IL L S o f 9 1 -D a y B ills , T o B e I s s u e d J u ly 1 7 , 1 9 8 0 , D u e O c to b e r 1 6 , 1 9 8 0 $ 4 ,0 0 0 ,0 0 0 ,0 0 0 o f 1 8 2 -D a y B ills , T o B e I s s u e d J u ly 1 7 , 1 9 8 0 , D u e J a n u a r y 1 5 , 1 9 8 1 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 Departm ent: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $8,000 million, to be issued July 17, 1980. This offering will provide $1,200 million of new cash for the Treasury as the maturing bills are outstanding in the amount of $6,796 million, including $1,035 million currently held by Federal Reserve Banks as agents for for eign and international monetary authorities, and $1,583 million cur rently held by Federal Reserve Banks for their own account. The two series offered are as follow’s : 91-day bills (to maturity date) for approximately $4,000 million, representing an additional amount of bills dated April 17, 1980, and to mature October 16, 1980 (C U SIP No. 912793 5K8), originally issued in the amount of $3,544 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,000 million to be dated July 17, 1980, and to mature January 15, 1981 (C U SIP No. 912793 5 ¥ 4 ^ Both series of bills will be'issued for cash and in exchange for Treasury bills maturing July 17, 1980. Tenders from Federal Reserve Banks for themselves and as agents tor 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 bederal Reserve Banks, as agents for 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 Daylight Saving time, Monday, July 14, 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 Treasury. 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 tiie book-entry records of Federal Reserve Banks and Branches. 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 July 17, 1980, in cash or other immediately available funds or in Treasury bills maturing July 17, 1980. Cash adjustments will be made for differences between the par value of the maturing 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 Daylight Saving time, Monday, July 14 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 Treasury Bills.” Form s 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 confirm ation; no tenders may be submitted by telephone. Payment for Treasury bills cannot ’be made by credit through the Treasury Tax and Loan Account. Settlem ent must be made in cash or'other immediately available funds or in maturing Treasury bills. ' 1 Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. A nthony M. S olom on, P r e s id e n t. ( 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 J U L Y 1 0 , 1 9 8 0 ) Range of Accepted Com petitive Bids pi-D ay Treasury Bills Maturing October 9 , 1980 Price H ig h ................................................ L o w .................................................. A v erag e.......................................... 97.965a 97.914 97.925 Discount Rate 8.051% 8.252% 8.209% 182 -Day Treasury Bills M aturing January 8 , 198 1 Investment Rate 1 Price Discount Rate Investment Rate 1 8.33% 8.55% 8.50% 95.959 95.879 95.898 7.993% 8.151% 8.114% 8.45% 8.62% 8.58% 1 Equivalent coupon-issue yield. a Excepting one tender of $700,000. (19 percent of the amount of 91-day bills bid for at the low price was accepted.) (43 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 M aturing October 9 , 1980 By F.R. District (and U S . Treasury) Received B oston......................................... . $ 69,385,000 New Y o rk ................................... 5,697,330,000 Philadelphia............................... 55,075,000 C leveland.................................... 50,215,000 57,535,000 R ichm ond.................................... A tlan ta......................................... 53,415,000 C hicago........................................ 356,170,000 St. L o u is...................................... 45,270,000 M inneapolis................................ 22,800,000 Kansas C ity ................................ 54,145,000 D allas........................................... 29,220,000 San F ran cisco ............................ 420,435,000 U.S. T re a su ry ............................ T o t a l s ............................................... 182 -Day Treasury Bills M aturing January 8, 198 1 Received Accepted $ 49,385,000 3,150,215,000 30,075,000 49,315,000 42,535,000 53,415,000 185,670,000 32,270,000 22,800,000 54,145,000 24,220,000 146,435,000 $ 51,110,000 5,928,210,000 10,065,000 19,360,000 52,605,000 49,795,000 382,935,000 26,595,000 14,455,000 31,345,000 12,345,000 301,445,000 Accepted $ 33,260,000 3,407,860,000 10,065,000 19,360,000 28,615,000 49,795,000 195,935,000 15,595,000 13,455,000 29,635,000 12,345,000 56,445,000 159,720,000 159,720,000 129,335,000 129,335,000 $7,070,715,000 $4,000,200,000 $7,009,600,000 $4,001,700,000 $5,156,190,000 839,465,000 $2,085,675,000 839,465,000 $5,243,490,000 416,710,000 $2,235,590,000 416,710,000 $5,995,655,000 911,410,000 163,650,000 $2,925,140,000 911,410,000 163,650,000 $5,660,200,000 910,000,000 439,400,000 $2,652,300,000 910,000,000 439,400,000 $7,070,715,000 $4,000,200,000 $7,009,600,000 $4,001,700,000 B y c la s s o f b id d e r Public Competitive ........................... Noncompetitive .................... S ubtotals ..................................... Federal R eserv e......................... Foreign Official Institutions .... T otals ..............................................
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