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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States 89351 [ CircularNo. October 15, 1980 J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $3,900,000,000 of 91-Day Bills, To Be Issued October 23, 1980, Due January 22, 1981 $3,900,000,000 of 182-Day Bills, To Be Issued October 23, 1980, Due April 23, 1981 To All 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 tenders for two series of Treasury bills totaling approximately $7,800 million, to be issued October 23, 1980. This offering will provide $200 million of new cash for the Treasury as the maturing bills are outstanding in the amount of $7,597 million, including $1,326 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities, and $1,338 mil lion currently 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 $3,900 million, representing an additional amount of bills dated July 24, 1980, and to mature January 22, 1981 (C U S IP No. 912793 6D 3), currently outstanding in the amount of $4,007 million, the additional and original bills to be freely interchangeable. 182-day bills (to maturity date) for approximately $3,900 million, representing an additional amount of bills dated April 29, 1980, and to mature April 23, 1981 (C U S IP No. 912793 6A 9), currently outstanding in the amount of $4,016 million, the additional and original bills to be freely interchangeable. Both series of bills will be issued for cash and in exchange for Treasury bills maturing October 23, 1980. Tenders from Federal Reserve Banks for themselves and as agents of 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 Federal Reserve Banks, as agents of 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 tederal 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, October 20, 1980. Form P D 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 oyer $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 Y ork 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 rehect positions held at the close of business on the day prior to the auction, buch 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 bederal 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. N o 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 the book-entry records of Federal Reserve Banks and Branches. Public announcements will be made by the Department of the Treasury of the amount and price range of accepted bids. Competi tive biuciers will be advised oi tne acceptance or rejection of their tenders. The Secretary oi 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 $5(JU,UUU 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 October 23, 1980, in cash or other immediately available funds or in Treasury bills maturing October 23, 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, October 20, 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. P a y m e n t fo r T rea su ry bills cannot be m ade b y credit th rou gh the T r ea su r y T a x and L o a n A c c o u n t. S e ttlem en t m u st be m ade in cash or oth er im m ed ia tely available fu n d s or in T r ea su r y secu rities m aturing on or b efore the issu e date. Results of the last weekly offering o f Treasury bills are shown on the reverse side of this circular. A nthony M . S olom on, President. ( over ) RESULTS OF LA ST W E E K L Y OFFERING OF T R E A SU R Y BILLS (T W O SERIES TO BE ISSUED OCTOBER 16, 1980) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing January 15, 1981 Price H ig h ............................ ..................... L o w ............................. ..................... A verage............................................ 97.158a 97.120 97.134 182-Day Treasury Bills Maturing April 16, 1981 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 11.243% 11.393% 11.338% 11.73% 11.89% 11.83% 94.328 94.276 94.297 11.219% 11.322% 11.281% 12.06% 12.18% 12.13% 1 Equivalent coupon-issue yield, a Excepting three tenders totaling $2,545,000. (34 percent of the amount of 91-day bills bid for at the low price was accepted.) (59 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing January 15, 1981 B y F .R . D is tr ic t (a n d U S . T r e a s u r y ) R e c e iv e d B o sto n .......................................... $ 104,820,000 New Y o rk ....................................... 5,146,315,000 P hiladelphia................................... 35,195,000 C leveland......................................... 83,965,000 Richm ond ........................................ 68,295,000 A tla n ta .............................................. 62,790,000 C hicago............................................. 350,640,000 St. L o u is.......................................... 47,555,000 M inneapolis.................................... 25,250,000 44,420,000 Kansas C ity .................................... 28,220,000 D allas................................................ 441,525,000 San F ran cisco ................................ 193,870,000 U.S. T re a s u ry ............................... T o t a l s .................................... $6,632,860,000 $ A ccep ted 182-Day Treasury Bills Maturing April 16, 1981 R e c e iv e d A ccep ted 54,820,000 2,778,815,000 35,195,000 70,665,000 43,295,000 58,790,000 219,640,000 26,555,000 23,250,000 44,420,000 28,220,000 323,225,000 193,870,000 $3,900,760,000 $ 67,045,000 5,246,485,000 21,340,000 47,610,000 34,870,000 64,855,000 508,890,000 41,885,000 35,555,000 40,205,000 17,015,000 449,175,000 222,890,000 $6,797,820,000 $ $1,960,105,000 884,035,000 $2,844,140,000 709,895,000 346,725,000 $3,900,760,000 $4,766,935,000 740,520,000 $5,507,455,000 700.000,000 590,365,000 $6,797,820,000 $1,869,345,000 740,520,000 $2,609,865,000 700,000,000 590,365,000 $3,900,230,000 37,045,000 2,911,905,000 21,340,000 42,610,000 33,870,000 52,855,000 263,890,000 20,885,000 25,555,000 39,705,000 14,605,000 213,075,000 222,890,000 $3,900,230,000 B y cla ss o f bidder Public Competitive .............................. $4,692,205,000 884,035,000 Noncompetitive ........................ S ubtotals ............................ $5,576,240,000 709,895,000 Federal R e se rv e ............................ 346,725,000 Foreign Official Institutions .... $6,632,860,000 T ................................................. o ta ls An additional $12,835,000 of 13-week bills and an additional $12,735,000 of 26-week bills will be issued to foreign official institutions for new cash. October 15, 1980 TREASURY ANNOUNCES NEW ANNOUNCEMENT AND AUCTION SCHEDULE FOR 52-WEEK BILLS The following statement was issued yesterday by the Treasury Department: The Treasury announced that the next auction of 52week bills will be scheduled for Thursday, October 30, 1980. Details of the offering, including the amount to be auctioned, will be announced on Friday, October 24, 1980, with issue of the bills on Thursday, November 6, 1980. This new schedule of Friday announcements, Thursday auctions, and Thursday issues is required by the coincident maturity of 52-week, 26-week, and 13-week bills. The transition to the common Thursday maturity date was begun a year ago in order to reduce the number of separate bill issues outstanding, facilitate market trading and improve liquidity for the 52-week bills. The offering and auction schedule for 13- and 26-week bills will remain unchanged. FEDERAL RESERVE BANK OF NEW YORK
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