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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States J C ir c u la r N o . 8 9 2 1 1 [ September 24, 1980 OFFERING OF TWO SERIES OF TREASURY BILLS $3,900,000,000 of 92-Day Bills, To Be Issued October 2, 1980, Due January 2, 1981 $3,900,000,000 of 182-Day Bills, To Be Issued October 2, 1980, Due April 2, 1981 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 Department: The Department of the Treasury, by this public notice, invites million. This information should reflect positions held at the close of tenders for two series of Treasury bills totaling approximately business on the day prior to the auction. Such positions would in $7,800 million, to be issued October 2, 1980. This offering will clude bills acquired through "when issued” trading, and futures and provide $325 million of new cash for the Treasury as the maturing forward transactions as well as holdings of outstanding bills with bills are outstanding in the amount of $7,475 million, including the same maturity date as the new offering, e.g., bills with three $817 million currently held by Federal Reserve Banks as agents months to maturity previously offered as six month bills. Dealers for foreign and international monetary authorities, and $1,793 mil who make primary markets in Government securities and report lion currently held by Federal Reserve Banks for their own account. daily to the F'ederal Reserve Bank of New York their positions in and borrowings on such securities, when submitting tenders for cus The two series offered are as follows: 92-day bills (to maturity date) for approximately $3,900 tomers, must submit a separate tender for each customer whose net million, representing an additional amount of bills dated long position in the bill being offered exceeds $200 million. Payment for the full par amount of the bills applied for must January 8, 1980, and to mature January 2, 1981 (CUSIP No. 912793 5W2), currently outstanding in the amount of accompany all tenders submitted for bills to be maintained on the $8,031 million, the additional and original bills to be book-entry records of the Department of the Treasury. A cash adjustment will be made on all accepted tenders for the difference freely interchangeable. 182-day bills for approximately $3,900 million to be dated between the par payment submitted and the actual issue price as October 2, 1980, and to mature April 2, 1981 (CUSIP determined in the auction. No deposit need accompany tenders from incorporated banks No. 912793 6L5). trust companies and from responsible and recognized dealers Both series of bills will be issued for cash and in exchange for and investment securities for bills to De maintained on tiie book-entry Treasury bills maturing October 2, 1980. Tenders from Federal m of F'ederal Reserve Banks and Branches. Reserve Banks for themselves and as agents of foreign and inter records Public announcements will be made by the Department of the national monetary authorities will be accepted at the weighted Treasury of the amount and price range of accepted bids. Competi average prices of accepted competitive tenders. Additional amounts tive bidders be advised of the acceptance or rejection of their of the bills may be issued to Federal Reserve Banks, as agents of tenders. The will Secretary of the Treasury expressly reserves the right foreign and international monetary authorities, to the extent that to accept or reject or all tenders, in whole or in part, and the the aggregate amount of tenders for such accounts exceeds the Secretary’s action any shall be final. Subject to these reservations, aggregate amount of maturing bills held by them. noncompetitive tenders for each issue for $500,000 or less without The bills will be issued on a discount basis under competitive and stated price from any one bidder will be accepted in full at the noncompetitive bidding, and at maturity their par amount will be weighted average price (in three decimals) of accepted competitive payable without interest. Both series of bills will be issued entirely bids for the respective issues. in book-entry form in a minimum amount of $10,000 and in any Settlement for accepted tenders for bills to be maintained on the higher $5,000 multiple, on the records either of the Federal Reserve book-entry records of Federal Reserve Banks and Branches must Banks and Branches, or of the Department of the Treasury. be made or completed at the Federal Reserve Bank or Branch on Tenders will be received at Federal Reserve Banks and Branches October 2, 1980, in cash or other immediately available funds or and at the Bureau of the Public Debt, Washington, D.C. 20226, up in Treasury bills maturing October 2, 1980. Cash adjustments to 1:30 p.m., Eastern Daylight Saving time, Monday, September 29, will be made for differences between the par value of the maturing 1980. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 bills accepted in exchange and the issue price of the new bills. (for 13-week series) should be used to submit tenders for bills to be Under Sections 454(b) and 1221(5) of the Internal Revenue maintained on the book-entry records of the Department of the Code of 1954 the amount of discount at which these bills are sold Treasury. is considered to accrue when the bills are sold, redeemed or other Each tender must be for a minimum of $10,000. Tenders over wise disposed of, and the bills are excluded from consideration as $10,000 must be in multiples of $5,000. In the case of competitive capital assets. Accordingly, the owner of these bills (other than tenders the price offered must be expressed on the basis of 100, life insurance companies) must include in his or her Federal in with not more than three decimals, e.g., 99.925. Fractions may not come tax return, as ordinary gain or loss, the difference between be used. the price paid for the bills, whether on original issue or on sub Banking institutions and dealers who make primary markets in sequent purchase, and the amount actually received either upon sale Government securities and report daily to the Federal Reserve or redemption at maturity during the taxable year for which the Bank of New York their positions in and borrowings on such return is made. securities may submit tenders for account of customers, if the Department of the Treasury Circulars, Public Debt Series—Nos. names of the customers and the amount for each customer are 26-76 and 27-76, and this notice, prescribe the terms of these Treas furnished. Others are only permitted to submit tenders for their ury bills and govern the conditions of their issue. Copies of the own account. Each tender must state the amount of any net long circulars and tender forms may be obtained from any Federal Re position in the bills being offered if such position is in excess of $200 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, Septem ber 29, 1980, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for both 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 Treasury securities maturing on or before the issue date. 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 olom on, President. P lease n o te th a t th e T re a su ry b ills m a tu rin g J a n u a ry 2, 1981 w ill b e 92-day bills. ( 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 SEPTEM BER 25, 1980) R ange of A ccepted C om petitive B ids 92-Day Treasury Bills Maturing December 26, 1980 Price H ig h ... 97.356“ 97.312 97.327 L ow ..... Average Discount Rate Investment R ate 1 10.346% 10.518% 10.460% 10.77% 10.96% 10.90% 182-Day Treasury Bills Maturing March 26, 1981 Price 94.560'1 94.507 94.528 1 Equivalent coupon-issue yield. <1Excepting four tenders totaling $3,080,000. Discount Rate Investment R ate 1 10.760% 10.865% 10.824% 11.54% 11.66% 11.61% b Excepting two tenders totaling $765,000. (69 percent of the amount of 92-day bills bid for the low price was accepted.) (24 percent of the amount of 182-day bills bid for at the low price was accepted.) T o tal T en d ers R eceived and A ccepted 92-Day Treasury Bills Maturing December 26, 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 ......................... Dallas.................................... San Francisco...................... Received $ 84,110,000 5,055,520,000 29,930,000 48.280.000 44,490,000 51,320.000 606,065,000 29,755,000 31,065,000 46,580,000 30,780,000 529,160,000 Accepted Received Accepted 55,370,000 2,887,610,000 29,930,000 47,780,000 39,125,000 48,320,000 275,055,000 20,755,000 29,825,000 46,580,000 30,780,000 195,850,000 $ 108,385,000 4.771,050,000 22,790,000 50,485,000 91,470,000 59,920,000 448,705,000 38,815,000 18,270,000 43,880,000 17,865,000 298,220,000 $ 54,585,000 3,018,450,000 22,790,000 40,485,000 61,470,000 58,920,000 178,705,000 29,815,000 15,270,000 43,880,000 17,865,000 113,220,000 93,455,000 93,455,000 145,660,000 145,660,000 ... $6,680,510,000 $3,800,435,000 $6,115,515,000 $3,801,115,000 Public Competitive .................... .... Noncompetitive .............. $4,718,150,000 795,935,000 $1,838,075,000 795,935,000 $4,163,950,000 709,265,000 $1,849,550,000 . 709,265,000 $5,514,085,000 1,005,555,000 160,870,000 $2,634,010,000 1,005,555,000 160,870,000 $4,873,215,000 1 ,0 0 0 ,0 0 0 , 0 0 0 242,300,000 $2,558,815,000 1 ,0 0 0 .0 0 0 . 0 0 0 242,300,000 $6,680,510,000 $3,800,435,000 $6,115,515,000 $3,801,115,000 U.S. T reasury..................... T o t a l s ......................... $ 182-Day Treasury Bills M aturing March 26 , 1981 By class of bidder .................. .... Federal R eserve.................. .... Foreign Official Institutions T o tals ............................... .... S ubtotals
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