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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No L 8 9 5 7 ”! November 19, 1980 J OFFERING OF TWO SERIES OF TREASURY BILLS $4,000,000,000 of 90-Day Bills, To Be Issued November 28, 1980, Due February 26, 1981 $4,000,000,000 of 181-Day Bills, To Be Issued November 28, 1980, Due May 28, 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 D ep a rtm en t ten d ers fo r tw o of th e s e r ie s T reasu ry, by of T reasu ry t h is b ills p u b lic to ta lin g i n v it e s m illio n . T h is in fo r m a t io n s h o u ld r e fle c t p o s it io n s h e ld a t th e c lo s e o f a p p r o x im a te ly n o tic e , b u s in e s s o n t h e d a y p r i o r t o t h e a u c t i o n . S u c h p o s i t i o n s w o u l d i n c lu d e b ills a c q u ir e d t h r o u g h “ w h e n is s u e d ” t r a d in g , a n d fu t u r e s a n d $ 8 ,0 0 0 m i l l i o n , t o b e i s s u e d N o v e m b e r 2 8 , 1 9 8 0 . T h i s o f f e r i n g w i l l p r o v id e $ 4 2 5 m illio n o f n e w c a s h f o r th e T r e a s u r y a s th e m a t u r in g b ills are o u ts ta n d in g in th e am ount of $ 7 ,5 8 2 m illio n , in c lu d in g fo rw a rd t r a n s a c tio n s as w e ll as h o ld in g s o f o u t s ta n d in g b ills w it h B a n k s as a g en ts t h e s a m e m a t u r i t y d a t e a s t h e n e w o f f e r i n g , e .g ., b i l l s w i t h t h r e e m o n t h s t o m a t u r it y p r e v io u s ly o f f e r e d a s s ix m o n t h b ills . D e a le r s f o r f o r e i g n a n d i n t e r n a t i o n a l m o n e t a r y a u t h o r i t i e s , a n d $ 1 ,6 0 8 m i l lio n c u r r e n t ly h e ld b y F e d e r a l R e s e r v e B a n k s f o r t h e ir o w n a c c o u n t . T h e t w o s e r ie s o f f e r e d a re as f o l l o w s : w h o m a k e p r i m a r y m a r k e t s in G o v e r n m e n t s e c u r i t i e s a n d r e p o r t d a i l y t o t h e F e d e r a l R e s e r v e B a n k o f N e w Y o r k t h e i r p o s i t i o n s in a n d b o r r o w in g s o n s u c h s e c u r itie s , w h e n s u b m it tin g t e n d e r s f o r c u s $ 2 ,1 0 5 m illio n c u r r e n tly h e ld b y F ederal R eserve 9 0 - d a y b i l l s ( t o m a t u r i t y d a t e ) f o r a p p r o x i m a t e l y $ 4 ,0 0 0 m illio n , r e p r e s e n t in g a n a d d it io n a l a m o u n t o f b ills d a te d M a rch 4, 1980, and to m a tu re F ebru ary 26, 1981 ( C U S I P N o . 9 1 2 7 9 3 5 Y 8 ) , c u r r e n t l y o u t s t a n d i n g in t h e a m o u n t o f $ 7 ,9 5 1 m i l l i o n , t h e a d d i t i o n a l a n d o r i g i n a l b ills t o b e f r e e ly in t e r c h a n g e a b le . 1 8 1 - d a y b i l l s f o r a p p r o x i m a t e l y $ 4 ,0 0 0 m i l l i o n t o b e d a t e d N o v e m b e r 2 8 , 1980, a n d t o m a tu r e M a y 2 8 , 1981 ( C U S I P N o . 912793 6 S 0 ) . B o th s e r ie s o f b ills w ill b e is s u e d f o r cash a n d in e x c h a n g e f o r t o m e r s , m u s t s u b m it a s e p a r a te te n d e r f o r e a c h c u s t o m e r l o n g p o s i t i o n in t h e b ill b e in g o f f e r e d P a y m e n t f o r th e fu ll p a r a m o u n t o f th e b ills a p p lie d f o r m u s t a c c o m p a n y a ll te n d e r s s u b m itte d f o r b ills t o b e m a in ta in e d o n th e b o o k - e n t r y r e c o r d s o f th e D e p a r t m e n t o f th e T r e a s u r y . A cash a d j u s t m e n t w i l l b e m a d e o n a ll b e tw e e n th e p a r d e t e r m in e d in N o d e p o s it an d tru st com in i n v e s t m e n t paym ent a ccep ted ten d ers fo r s u b m itte d and record s o f F ed era l R eserv e B an k s and n a tio n a l T r e a s u r y o f th e a u th o ritie s w ill be a v e r a g e p r ic e s o f a c c e p t e d c o m p e t it iv e a ccep ted at th e w e ig h te d ten d e rs. A d d itio n a l a m o u n ts o f th e b ills m a y b e is s u e d t o F e d e r a l R e s e r v e B a n k s , a s a g e n t s o f fo r e ig n a n d in te r n a tio n a l m o n e t a r y a u th o r itie s , t o th e e x t e n t th a t th e a g g reg a te am ount of ten d ers fo r su ch a ccou n ts exceeds th e P u b lic an n ou n cem en t s ta te d in a m in im u m am ount o f $ 1 0 ,0 0 0 and in any h i g h e r $ 5 ,0 0 0 m u l t i p l e , o n t h e r e c o r d s e i t h e r o f t h e F e d e r a l R e s e r v e B anks and B ran ch es, o r o f th e D e p a r t m e n t o f th e T reasu ry . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s a n d a t th e B u r e a u o f th e P u b lic D e b t , W a s h i n g t o n , D .C . 2 0 2 2 6 , u p t o 1 :3 0 p m ., E a s t e r n S t a n d a r d t im e , M o n d a y , N o v e m b e r 2 4 , 1 9 8 0 . th e d iffe r e n c e is s u e p r ic e as be B ra n ch es. m ade a m o u n t a n d p r ic e by th e D ep a rtm en t of th e r a n g e o f a c c e p t e d b id s . C o m p e t i of t h e ir e x p r e s s ly r e s e r v e s th e or r e je c t io n r ig h t t o a c c e p t o r r e j e c t a n y o r a l l t e n d e r s , in w h o l e o r in p a r t , a n d t h e S e c r e t a r y ’ s a c t i o n s h a ll b e f in a l. S u b j e c t t o t h e s e r e s e r v a t i o n s , n o n c o m p e t it iv e fo rm w ill te n d e rs . T h e S e c r e t a r y o f th e T r e a s u r y T h e b i l l s w i l l b e is s u e d o n a d i s c o u n t b a s i s u n d e r c o m p e t i t i v e a n d n o n c o m p e t it iv e b id d in g , a n d a t m a t u r it y t h e ir p a r a m o u n t w i l l b e p a y a b l e w i t h o u t in t e r e s t . B o t h s e r i e s o f b i l l s w i l l b e i s s u e d e n t i r e l y b o o k -e n try a ctu a l t iv e b i d d e r s w i l l b e a d v i s e d o f t h e a c c e p t a n c e a g g r e g a t e a m o u n t o f m a t u r in g b ills h e ld b y th e m . in th e th e a u c tio n . n eed a c c o m p a n y te n d e rs fr o m in c o r p o r a te d b a n k s p a n ie s a n d f r o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s s e c u r it ie s f o r b ills t o b e m a in ta in e d o n th e b o o k - e n t r y T r e a s u r y b ills m a t u r in g N o v e m b e r 28, 1980. T e n d e r s fr o m F e d e r a l R e s e r v e B a n k s f o r th e m s e lv e s a n d a s a g e n t s o f f o r e ig n a n d in t e r m on eta ry w h o se net e x c e e d s $ 2 0 0 m illio n . p r ic e ten d ers fo r fr o m any one w e ig h te d a v e r a g e p r ic e ea ch is s u e f o r $ 5 0 0 ,0 0 0 o r b id d e r w ill be (in th ree d e c im a ls ) b i d s f o r t h e r e s p e c t i v e is s u e s . S e ttle m e n t f o r a c c e p t e d te n d e r s a ccep ted le s s in w ith o u t fu ll at th e o f a c c e p t e d c o m p e t it iv e f o r b ills t o b e m a in ta in e d o n th e b o o k -e n try re co rd s o f F ed era l R e se rv e B an k s and B ra n ch es m u st b e m a d e o r c o m p le te d a t th e F e d e r a l R e s e r v e B a n k o r B r a n c h o n N o v e m b e r 2 8 , 1 9 8 0 , in c a s h o r o t h e r i m m e d i a t e l y a v a i l a b l e f u n d s o r in T r e a s u r y b ills w ill b e m a d e f o r m a t u r in g N ovem ber 28, 1980. C ash a d ju s t m e n t s d iffe r e n c e s b e t w e e n th e p a r v a lu e o f th e m a t u r in g F orm PD 4 6 3 2 -2 ( f o r 2 6 -w e e k s e r ie s ) or F orm PD 4 6 3 2 -3 ( f o r 1 3 -w e e k s e r ie s ) s h o u ld b e u s e d t o s u b m it te n d e r s f o r b ills t o b ills a c c e p t e d b e m a in ta in e d o n th e C o d e o f 1 9 5 4 th e a m o u n t o f d is c o u n t a t w h ic h th e s e b ills a r e s o ld is c o n s i d e r e d t o a c c r u e w h e n t h e b i l l s a r e s o l d , r e d e e m e d o r o t h e r w is e d is p o s e d o f , a n d th e b ills a r e e x c lu d e d f r o m c o n s id e r a t io n a s b o o k -e n try r e c o r d s o f th e D e p a r t m e n t o f th e T reasu ry . E a c h t e n d e r m u s t b e f o r a m i n i m u m o f $ 1 0 ,0 0 0 . T e n d e r s o v e r $ 1 0 ,0 0 0 m u s t b e in m u l t i p l e s o f $ 5 ,0 0 0 . I n t h e c a s e o f c o m p e t i t i v e t e n d e r s th e p r ic e o f f e r e d m u s t b e e x p r e s s e d o n th e b a s is o f 1 00 , w i t h n o t m o r e t h a n t h r e e d e c i m a l s , e . g . , 9 9 .9 2 5 . F r a c t i o n s m a y n o t be used. B a n k in g in s titu tio n s a n d of s e c u r itie s N ew s e c u r itie s m ay nam es th e of Y ork and t h e ir d e a le r s who rep ort d a ily p o s itio n s s u b m it te n d e rs cu stom ers and fo r th e m ake in to p r im a r y th e and accou n t am ount m ark ets F ed era l b o r r o w in g s of fo r R eserve on cu stom ers, ea ch in su ch if th e cu stom er are in e x c h a n g e a n d t h e i s s u e p r i c e o f t h e S e c t io n s 4 5 4 (b ) and 1 2 2 1 (5 ) c a p ita l a s s e ts . A c c o r d i n g l y , th e life in s u r a n c e c o m p a n ie s ) m u s t com e th e G overn m en t B ank U nder ta x p r ic e retu rn , p a id fo r as o r d in a r y th e of th e n e w b ills . In te rn a l R evenue o w n e r o f th e s e b ills ( o t h e r th a n i n c l u d e in h i s o r h e r F e d e r a l i n g a in or lo s s , b ills , w h e t h e r o n th e d iffe r e n c e o r ig in a l is s u e b e tw e e n or on sub s e q u e n t p u r c h a s e , a n d t h e a m o u n t a c t u a l l y r e c e i v e d e i t h e r u p o n s a le o r r e d e m p t io n a t m a t u r it y d u r in g th e t a x a b le y e a r f o r w h ic h th e r e t u r n is m a d e . D e p a r t m e n t o f th e T r e a s u r y C ir c u la r s , P u b lic D e b t S e r ie s — N o s . 2 6 -7 6 a n d 2 7 -7 6 , a n d th is n o t ic e , p r e s c r ib e th e t e r m s o f th e s e T r e a su ry b ills and fu r n is h e d . O t h e r s a r e o n ly p e r m it t e d t o s u b m it te n d e r s f o r t h e ir o w n a c c o u n t . E a c h t e n d e r m u s t sta te th e a m o u n t o f a n y n e t l o n g c ir c u la r s p o s i t i o n in t h e b i l l s b e i n g o f f e r e d i f s u c h p o s i t i o n is in e x c e s s o f $ 2 0 0 serve B an k o r govern th e c o n d itio n s a n d te n d e r fo r m s m a y b e B ra n ch , o r fr o m of th e ir is s u e . o b ta in e d fr o m th e B u r e a u C o p ie s of th e any F ederal R e o f th e P u b lic D e b t. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, November 24, 1980, at the Securities Department o f 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 written 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 nth ony M. S o l o m o n , President. ( Please note that the current offering is for 90-day and 181-day Treasury bills. over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED NOVEMBER 20, 1980) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing May 21, ip8i pi-Day Treasury Bills Maturing February ip, ip8i Price H ig h ................................................. 96.411a 96.374 96.383 L o w ............................................................................... A vera ge............................................ Discount Rate Investment Rate 1 14.198% 14.345% 14.309% Price 14.93% 15.09% 15.05% 93.008 b 92.933 92.964 Discount Rate Investment Rate 1 13.830% 13.979% 13.917% 15.08% 15.25% 15.18% 1 E q u iv a le n t c o u p o n -is s u e y ie ld . a E x c e p t i n g t w o t e n d e r s t o t a l i n g $ 3 ,2 2 5 , ,0 0 0 . b E x c e p t i n g t w o t e n d e r s t o t a l i n g $ 7 6 0 ,0 0 0 . (59 percent o f the amount of 91-day bills bid for at the low price was accepted.) (73 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 182-Day Treasury Bills Maturing May 21, ip8i pi-Day Treasury Bills Maturing February ip, ip8i By F.R. District (and U.S. Treasury) B oston .......................................... New Y o r k ................................... Philadelphia................................ Cleveland.................................... R ich m on d.................................... A tlanta......................................... C h icago........................................ St. L o u is ................................... M inneapolis................................ Kansas C ity ................................ D allas........................................... San F ran cisco............................. U.S. T reasu ry............................ T o t a l s ............................... Received 78,315,000 6,937,555,000 35,895,000 91,295,000 74,475,000 56,745,000 394,510,000 30,710,000 7,960,000 49,350,000 22,095,000 435,805,000 108,035,000 $8,322,745,000 Accepted 61,815,000 3,298,205,000 35,895,000 79,725,000 48,475,000 56,745,000 89,510,000 20,710,000 7,960,000 49,350,000 22.095,000 122,305,000 108,035,000 $4,000,825,000 Received 110,695,000 6,810,905,000 24,295,000 83,880,000 35,950,000 61,625,000 470,120,000 33,870,000 10,675,000 64,535,000 13,895,000 502,365,000 112,810,000 $8,335,620,000 Accepted 53,195,000 3,111,405,000 24,295,000 58,880,000 34,950,000 51,525,000 186,920,000 22,870,000 10,675,000 54,285,000 13,895,000 264,365,000 112,810,000 $4,000,070,000 $ $ $ $ $5,733,260,000 869,505,000 $6,602,765,000 739,165,000 980,815,000 $8,322,745,000 $1,411,340,000 869,505,000 $2,280,845,000 739,165,000 980,815,000 $4,000,825,000 $5,969,150,000 689,120,000 $6,658,270,000 735,000,000 942,350,000 $8,335,620,000 $1,633,600,000 689,120,000 $2,322,720,000 735,000,000 942,350.000 $4,000,070,000 By class of bidder Public Com petitive............................ N oncom petitive..................... S u bto ta ls ......................... Federal R eserve......................... Foreign O ffic ia l Institutions..... T o t a l s ......................................... An additional $8,395,000 of 13-week bills and an additional $8,650,000 of 26-week bills will be issued to for eign official institutions for new cash.