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FEDERAL RESERVE BAN K OF N E W YO RK Fiscal A gent of the U nited States [" Circular No. 8 9 8 3 1 December 24. 1980 L J OFFERING OF T W O SERIES OF TR EA SU R Y BILLS $4,200,000,000 of 90-Day Bills, To Be Issued January 2, 1981, Due April 2, 1981 $4,200,000,000 of 181-Day Bills, To Be Issued January 2, 1981, Due July 2, 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 T reasury D ep artm ent: The D ep a rtm en t ten d ers fo r t w o $ 8 ,4 0 0 m i l l i o n , t o v id e $ 3 0 0 m illio n w e r e o r ig in a lly of th e T reasu ry , by t h is p u b lic n o tic e , i n v it e s s e r ie s o f T r e a s u r y b ills t o t a lin g a p p r o x im a t e ly b e is s u e d J a n u a r y 2, 1981. T h is o f f e r i n g w ill p r o o f n e w c a s h f o r t h e T r e a s u r y a s t h e m a t u r i n g b i ll s i s s u e d in t h e a m o u n t o f $ 8 ,1 0 7 m i l l i o n . 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 : 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 ,2 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 O c t o b e r 2, 1980, a n d t o m a tu r e A p r il 2, 1981 ( C U S I P N o . 9 1 2 7 9 3 6 L 5 ) , 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 $ 4 ,0 1 9 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 i l l s t o b e f r e e l y 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 ,2 0 0 m i l l i o n , t o b e d a t e d J a n u a r y 2, 1 9 8 1 , a n d t o m a t u r e J u l y 2 , 1 981 ( C U S I P fu r n is h e d . O t h e r s a r e o n ly p e r m itt 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 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 i n e x c e s s o f $ 2 0 0 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 b u s in e s s o n t h e d a y p r i o r to th e a u c t io n . S u c h p o s itio n s w o u ld in 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 ” tr a d in g , a n d fu t u r e s a n d fo r w a r d tr a n s a c tio n s a s w e ll a s h o ld in g s o f o u t s ta n d in g b ills w it h th e s a m e m a t u r it y d a te a s th e n e w o f f e r i n g , e .g ., b ills w it h th 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 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 su ch s e c u r it ie 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 t o m e r s , m u s t s u b m it a s e p a r a t e te n d e r f o r e a c h c u s t o m e r w h o se net l o n g p o s i t i o n in t h e b i l l b e i n g o f f e r e d e x c e e d s $ 2 0 0 m i l l i o n . 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 ust N o . 912793 7 K 6 ) . B o t h s e r ie s o f b ills w ill b e is s u e d f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a t u r in g J a n u a r y 2, 1981. In a d d it io n t o th e m a t u r in g 1 3 - w e e k a n d 2 6 - w e e k b i l l s , t h e r e a r e $ 4 ,0 1 8 m i l l i o n o f m a t u r i n g a ccom p a n y b o o k -e n try 5 2 - w e e k b i l l s . T h e d i s p o s i t i o n o f t h is l a t t e r a m o u n t w a s a n n o u n c e d b e tw e e n la s t w e e k . 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 f o r f o r e i g n a n d in 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 , c u r r e n t l y h o l d $ 2 ,4 9 7 m i l l i o n , a n d d e t e r m i n e d in t h e a u c t i o n . F ed era l a n d tr u s t c o m 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 in i n v e s t m e n t s e c u r i t i e s f o r b i l l s t o b e m a i n t a i n e d o n t h e b o o k - e n t r y R eserve B anks fo r th e ir ow n accou n t h o l d $ 2 ,6 3 3 m illio n o f t h e m a t u r i n g b i ll s . T h e s e a m o u n t s r e p r e s e n t t h e c o m b i n e d h o l d i n g s o f s u c h a c c o u n t s f o r t h e t h r e e is s u e s o f m a t u r i n g b i ll s . T enders agen ts fo r fr o m F ed era l R ese rv e B an k s fo r f o r e ig n a n d in te r n a tio n a l m o n e t a r y th e m s e lv e s a u th o r itie s and w ill as be a ll t e n d e r s s u b m i t t e d f o r b i l l s t o b e m a i n t a i n e d o n t h e r e c o r d s o f th e D e p a r tm e n t o f th e T r e a s u r y . A ca sh a d ju s t m e n t w ill b e m a d e o n a ll N o th e p a r p a y m e n t d e p o s it need a cce p te d ten d ers fo r s u b m itte d accom p an y and ten d ers record s o f F ederal R eserv e B an ks and P u b lic a n n o u n ce m e n t w ill b e m a d e T r e a s u r y o f th e a m o u n t a n d p r ic e th e a ctu a l fr o m th e d iffe r e n c e is s u e p r ic e in c o r p o r a te d B ra n ch es. b y th e D e p a r t m e n t as banks 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 a c c e p t e d at th e w e ig h t e d 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 t e n d e r s . A d d it io n a l a m o u n t s 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 f o r f o r e i g n a n d in t e r n a t io n a l m o n e t a r y t iv e b id d e r s w ill b e a d v is e d o f th e a c c e p t a n c e a u t h o r it ie s , t o th e e x t e n t th a t th e a g g r e g a t e a m o u n t o f t e n d e r s f o r s u c h a c c o u n t s e x c e e d s th 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 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 i t i v e t e n d e r s f o r e a c h i s s u e f o r $ 5 0 0 ,0 0 0 o r l e s s w i t h o u t b y th e m . F o r p u r p o s e s o f d e t e r m in in g s u c h a d d it io n a l a m o u n t s , f o 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 a re c o n s id e r e d t o h o ld $ 1 ,8 4 0 m i l l i o n o f t h e o r i g i n a l 1 3 - w e e k a n d 2 6 - w e e k i s s u e s . T h e b ills w ill b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv 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 ill be or r e je c t io n of t h e ir te n d e r s . T h e S e c r e t a r y o f th e T r e a s u r y e x p r e s s ly r e s e r v e s th e 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 , i n w h o l e o r in p a r t , a n d t h e s ta te d p r ic e fr o m any one w e ig h te d a v e r a g e p r ic e b id d e r 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 tt le m e n t f o r a c c e p t e d t e n d e r s b o o k -e n try record s of w ill be a ccep ted (in th re e d e c im a ls ) F ed era l in 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 R eserve B anks and B ra n ch es m ust p a y a b le w it h o u t in te r e s t. B o t h s e r ie s o f b ills w ill b e is s u e d e n t ir e ly be in J a n u a r y 2 , 1 9 8 1 , 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 i l l s m a t u r i n g J a n u a r y 2, 1 9 8 1 . C a s h a d j u s t m e n t s w ill b e m a d e f o r d iffe r e n c e s b e tw e e n th e p a r v a lu e o f th e m a t u r in g b o o k -e n try fo rm in a m in im u m am ount o f $ 1 0 ,0 0 0 and in a n y 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 a n k s a n d B r a n c h e s , o r 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 . 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 in g t o n , D .C . 2 0 2 2 6 , u p to 1 :3 0 p .m ., F a s t e r n S t a n d a r d t im e , M o n d a y , D e c e m b e r 29, 1980. 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 i e 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 e m a in ta in e d o n th e T reasu ry. 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 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 ten d ers th e p r ic e o ffe re d m ust be expressed on th e b a s is of 100, 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 be not used. B a n k in g in s tit u t io n s a n d d e a le r s who m ake p r im a r y m a rk ets in G o v e r n m e n t s e c u r itie s a n d r e p o r t d a ily t o th 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 i n g s o n s u c h s e c u r itie s m a y s u b m it t e n d e r s f o r a c c o u n t o f c u s t o m e r s , if th e nam es of th e cu stom ers and th e am ount fo r ea ch cu stom er are m ade or 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 ank or B ran ch on b i l l s a c c e p t e d 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 n e w b i l l s . U n d e r S e c t io n s 4 5 4 ( b ) a n d 1 2 2 1 ( 5 ) o f th e I n t e r n a l R e v e n u 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 c a p ita l a ssets. A c c o r d in g ly , th e a re e x c lu d e d fr o m ow ner of th ese c o n s id e r a t io n b ills (o th e r as th a n l i f e i n s u r a n c e c o m p a n i e s ) m u s t 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 c o m e t a x r e tu r n , a s o r d in a r y g a in o r lo s s , th e d iffe r e n c e b e tw e e n th e p rice p a id fo r th e b ills , w h e th e r o n o r ig in a l is s u e 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 l i c 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 t h is n o t i c e , p r e s c r i b e t h e t e r m s o f t h e s e T r e a s u r y b ills a n d g o v e r n th e c o n d it io n s o f t h e ir iss u e . C o p ie s o f th e c ir c u la r s a n d te n d e r fo r m s m a y be o b ta in e d fr o m a n y F e d e r a l R e s e rv e B a n k o r B ra n ch , o r fr o m th e B u r e a u o f th e P u b lic D e b t. T his Bank will receive tenders for both series up to 1 :30 p.m., E astern Standard time, M onday, December 29, 1980, at the Securities D epartm ent of its H ead Office and at its Buffalo Branch. T ender form s for both series are enclosed. Please use the appropriate form s to submit tenders and return them in the enclosed envelope m arked “T en der for T reasury Bills.” Form s for subm itting tenders directly to the T reasury are available from the G overnm ent Bond Division of this Bank. Tenders not requiring a deposit may be subm itted by telegraph, subject to w ritten confirm ation; no tenders may be subm itted by telephone. P a y m e n t f o r T r e a s u r y b il l s c a n n o t b e m a d e b y c r e d i t th r o u g h th e T r e a s u r y or in Tax T rea su ry s ecu rities a n d L o a n A c c o u n t . S e t t l e m e n t m u s t b e m a d e m c a s h o r o -th e r i m m e d i a t e l y a v a i l a b l e m a tu r in g o n o r b e fo r e fu n d s th e is s u e d a te. Results of the last weekly offering of T reasury bills are shown on the reverse side of this circular. A n t h o n y M. S o l o m o n , P resid en t. P lease n o te th a t th e c u rre n t o ffe rin g is fo r 90 -d ay a n d 181-day T re a su ry h ills. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED DECEMBER 26, 1980) R ange of A ccepted C om petitive Bids 1 8 1 -D a y T r ea su ry Bills M a tu rin g June 2 5 , 1 9 81 9 0 -D a y T rea su r y B ills M a tu rin g M a rch 2 6 , 1981 H ig h ....................................................... L o w ......................................................... A v erag e................................................. Price 96.275a 96.241 96.252 Investment Rate 1 15.69% 15.84% 15.79% Discount Rate 14.900% 15.036% 14.992% Price 93.006 92.835 92.945 Discount Rate 13.911% 14.251% 14.032% Investment Rate 1 15.16% 15.56% 15.31% 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 o n e t e n d e r o f $ 2 0 0 ,0 0 0 . (92 percent of the am ount of 90-day bills bid for at the low price was accepted.) (2 percent of the am ount of 181-day bills bid for at the low price was accepted.) T o tal T enders R eceived and A ccepted B y F .R . D is tr ic t (and U S . T r e a s u r y ) 9 0 -D a y T r ea su ry Bills 1 8 1 -D a y T rea su ry B ills M a tu rin g M a rch 2 6 , 1 9 81 M a tu rin g June 2 5 , 1 9 81 R e c e iv e d B o sto n ............................................... $ 126,240,000 New Y o rk ....................................... 5,097,645,000 45,160,000 P hiladelph ia.................................... 49,900,000 C leveland......................................... 43,380,000 R ichm on d........................................ 65,820,000 A tla n ta .............................................. 661,315,000 C h icago............................................. 33,195,000 St. L o u is.......................................... 8,825,000 M inneapolis.................................... 43,945,000 K ansas C ity .................................... 21,050,000 D allas................................................ 519,105,000 San F ran cisco ................................ 105,645,000 U .S. T re a s u ry ............................... T o t a l s ................................... $6,821,225,000 A ccep ted R e c e iv e d A ccep ted 80,740,000 2,965,365,000 40,160,000 45,735,000 43,380,000 63,220,000 175,765,000 23,195,000 8,825,000 42,335,000 21.050,000 385,105,000 105,645,000 $4,000,520,000 $ 35,395,000 4,322,565,000 16,410,000 29,475,000 33,625,000 32,325,000 563,895,000 33,425,000 9,850,000 33,440,000 11,030,000 308,950,000 61,220,000 $5,491,605,000 $ $1,676,665,000 843,685,000 $2,520,350,000 1,040,000,000 440,170,000 $4,000,520,000 $3,373,310,000 573,040,000 $3,946,350,000 1,041,955,000 503,300,000 $5,491,605,000 $1,882,075,000 573,040,000 $2,455,115,000 1,041,955,000 503,300,000 $4,000,370,000 $ 35,395,000 3,086,365,000 16,410,000 29,475,000 33,625,000 32,310,000 413,875,000 33,425,000 9,850,000 33,440,000 11,030,000 203,950,000 61,220,000 $4,000,370,000 B y class o f bidder Public C om petitive............................... $4,497,370,000 843,685,000 N oncom petitive........................ S u b t o t a l s ............................ $5,341,055,000 Federal R eserv e............................ 1,040,000,000 440.170,000 Foreign Official Institutions ..... T o t a l s ..... ......................... $6,821,225,000
@FedFRASER