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FEDERAL RESERVE BANK OF NEW YORK

Fiscal Agent of the United States

r Circular No. 8 9 7 9 "1

L December 17, 1980 J

OFFERING OF T W O SERIES OF T R E A SU R Y BILLS
$4,000,000,000 of 90-Day Bills, To Be Issued December 26, 1980, Due March 26, 1981
$4,000,000,000 of 181-Day Bills, To Be Issued December 26, 1980, Due June 25, 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
$8,000 million, to be issued December 26, 1980. This offering will
provide $675 million of new cash for the Treasury as the maturing
bills are outstanding in the amount of $7,327 million, including
$1,450 million currently held by Federal Reserve Banks as agents
for foreign and international monetary authorities, and $2,082 mil­
lion currently held by Federal Reserve Banks for their own account.
The two series offered are as follow s:
90-day bills (to maturity date) for approximately $4,000
million, representing an additional amount of bills dated
April 1, 1980, and to mature March 26, 1981 (C U S IP
No. 912793 5Z5), currently outstanding in the amount of
$7,847 million, the additional and original bills to be
freely interchangeable.
181-day bills for approximately $4,000 million to be dated
December 26, 1980, and to mature June 25, 1981
(C U S IP No. 912793 6V 3).
Both series of bills will be issued for cash and in exchange for
Treasury bills maturing December 26, 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 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 Standard time, Monday, December 22, 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
T reasury.
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 the book-entry
records of Federal Reserve Banks and Branches.
Public announcement will be made by the Department o f 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
December 26, 1980, in cash or other immediately available funds or
in Treasury bills maturing December 26, 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 Trea­
sury 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 Standard time, Monday, December 22,
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 written
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
through the T r ea su r y T a x and L oa n A cco u n t. S ettlem en t m u st be m ade in cash or other im m ediately available fu n ds
or in T rea su r y secu rities m aturing 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 nthony M. Solomon,
P resid en t.
P lease n o te that the cu rren t o ffe rin g is fo r




9 0 -day an d 181 -day T rea su ry b ills.
( 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 DECEM BER 18, 1980)

Range o f A ccepted Com petitive Bids
9 1 -D a y T r ea su r y B ills
M a tu rin g M a rch 19, 19 81

Price
H igh ............................... .................
L o w ................................ ..................
Average............................................

95.820
95.772
95.787

Discount
Rate

1 8 2 -D a y T rea su ry B ills
M a tu rin g June 1 8 ,1 9 8 1

Investment
Rate 1

Price

Discount
Rate

Investment
Rate 1

17.50%
17.71%
17.64%

92.225
92.192
92.203

15.379%
15.444%
15.423%

16.91%
16.99%
16.96%

16.536%
16.726%
16.667%

1 Equivalent coupon-issue yield.

(2 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(13 percent of the amount of 182-day bills
bid for at the low price was accepted.)

T otal Tenders Received and A ccepted

By F.R. District (and U S. Treasury)
Boston..........................................
New York ....................................
Philadelphia................................
Cleveland....................................
Richmond....................................
Atlanta.........................................
Chicago..............................
St. Louis............................
Minneapolis.................
Kansas City......................
Dallas.............................
San Francisco.................
U.S. Treasury..................
T o t a l s ................

9 1 -D a y T r ea su r y B ills
M a tu rin g M a rch 19, 1981

Received

Accepted

1 8 2 -D a y T r ea su ry B ills
M a tu rin g June 1 8 ,1 9 8 1

Received

Accepted

$
75,970,000
6,554,360,000
49,005,000
75,350,000
49,360,000
61,280,000
462,420,000
31,240,000
11,125,000
61,440,000
28,180,000
390,315,000

$
50,105,000
3,309,980,000
43,305,000
71,035,000
45,460,000
57,480,000
60,745,000
20,740,000
11,125,000
48,705,000
28,180,000
133,115,000

$
96,065,000
7,654,505,000
47,465,000
51,305,000
40,630,000
56,440,000
555,905,000
36,170,000
8,415,000
46,785,000
20,580.000
551,445,000

$
48,110,000
3,388,870,000
21,965,000
30,905,000
39,130,000
40,440,000
52,115,000
19,170,000
8,415,000
46,455,000
14,080,000
202,445,000

120,785,000

120,785,000

88,790,000

88,790,000

$7,970,830,000

$4,000,760,000

$9,254,500,000

$4,000,890,000

$5,099,885,000
940,800,000

$1,129,815,000
940,800,000

$6,751,830,000
685,575,000

$1,498,220,000
685,575,000

$6,040,685,000
910,735,000
1,019,410,000

$2,070,615,000
910,735,000
1,019,410,000

$7,437,405,000
1,315,000,000
502,095,000

$2,183,795,000
1,315,000,000
502,095,000

$7,970,830,000

$4,000,760,000

$9,254,500,000

$4,000,890,000

By class of bidder
Public
Competitive.............
Noncompetitive......
S u b to ta ls .........
Federal Reserve..
Foreign Official Institutions....

T o t a l s ................

An additional $170,460 of 13-week bills and an additional $79,905 of 26-week bills will be issued to foreign
official institutions for new cash.