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FED ER AL RESERVE BANK O F NEW YORK Fiscal Agent of the United States No. 9 0 1 1 1 Janupary 28, 1981 J [Circular OFFERING OF T W O SERIES OF TR E A SU R Y BILLS $4,300,000,000 of 91-Day Bills, To Be Issued February 5, 1981, Due May 7, 1981 $4,300,000,000 of 182-Day Bills, To Be Issued February 5, 1981, Due August 6, 1981 To All Incorporated Banks and Trust Companies, and Othe'rs Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department: T h e D e p a r t m e n t o f th e T r e a s u r y , b y th is p u b lic n o t ic e , in v ite s te n d e rs f o r t w o 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 $ 8 ,6 0 0 m illio n , t o b e is s u e d F e b r u a r y 5, 1981. T h i s o ff e r i n g w ill p r o v id e $ 5 5 0 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 as th e m a t u r in g b ills a re o u t s t a n d in g in th e a m o u n t o f $8,041 m illio n , in c lu d in g $ 2 ,1 4 8 m illio 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 a s a g e n ts 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 a u th o r it ie s a n d $ 1 ,4 9 0 m illio 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 th e ir o w n a c c o u n t. T h e t w o se r ie s o f f e r e d a r e a s f o l l o w s : 9 1 -d a y b ills ( t o m a tu r ity d a t e ) f o r a p p r o x im a t e ly $ 4 ,3 0 0 m illio n , r e p r e s e n t in g an a d d itio n a l a m o u n t o f b ills d a te d N o v e m b e r 6, 1980, a n d t o m a tu r e M a y 7, 1981 ( C U S I P N o . 9 1 2 7 9 3 6 Q 4 ) , c u r r e n t ly o u t s t a n d in g in th e a m o u n t o f $ 4 ,0 2 6 m illio n th e a d d itio n a l a n d o r ig in a l b ills t o be fr e e l y in t e r c h a n g e a b le . 1 8 2 -d a y b ills f o r a p p r o x im a t e ly $ 4 ,3 0 0 m illio n t o b e d a te d F e b r u a r y 5, 1981, a n d to m a tu r e A u g u s t 6, 1981 ( C U S I P N o . 912793 7 P 5 ) . 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 F e b r u a r y 5, 1981. T e n d e r s f r o m 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 m s e lv e s a n d a s a g e n ts f o r f o r e i g n a n d in t e r n a tio n a l m o n e t a r y a u th o r it ie s w ill b e a c c e p t e d a t 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 te n d e rs . A d d it io n a l a m o u n ts o f th e b ills m a y b e issu 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 ts f o r f o r e i g 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 it ie s t o th e e x t e n t th at th e a g g r e g a t e a m o u n t o f t e n d e rs f o r su ch a c c o u n t s e x c e e d s the 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 em . T h e b ills w ill b e issu 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 at m a t u r it y th e ir p a r a m o u n t w ill b e p a y a b le w it h o u t in te re st. B o t h s e r ie s o f b ills w ill b e issu e d e n t ir e ly in b o o k - e n t r y f o r m in a m in im u m a m o u n t o f $ 1 0 ,0 0 0 a n d in a n y h ig h e r $ 5 ,0 0 0 m u lt ip le , o n th e r e c o r d s e it h e r o f th 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 the 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 at 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 , up t o 1 :3 0 p .m ., E a s t e r n S ta n d a r d tim e , M o n d a y , F e b r u a r y 2, 1981. F orm PD 4 6 3 2 -2 ( f o r 2 6 -w e e k s e r i e s ) o r F o r m P D 4 6 3 2 -3 ( f o r 1 3 -w e e k s e r ie s ) s h o u ld be u s e d t o s u b m it t e n d e rs f o r b ills to b e m a in ta in e d o n the 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 tm e n t o f the T rea su ry . E a c h t e n d e r m u s t b e f o r a m in im 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 lt ip le s o f $ 5 ,0 0 0 . I n th e c a s e o f c o m p e t it iv 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 100, w it h n o t m o r e th a n th r e e d e c im a ls , e .g ., 9 9 .9 2 5 . F r a c t io n s m a y n o t b e u sed. B a n k in g in s titu tio n s a n d d e a le r s w h o m a k e p r im a r y m a r k e ts in G o v e r n m e n t s e c u r it ie 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 th e ir p o s itio n s in a n d b o r r o w i n g s o n su ch s e c u r it ie s m a y s u b m it t e n d e rs f o r a c c o u n t o f c u s t o m e r s , i f the n a m e s o f th e c u s t o m e r s a n d th e a m o u n t f o r e a c h c u s t o m e r a re fu rn 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 t e n d e rs f o r th e ir o w n a c c o u n t . E a c h te 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 lo n g p o s it io n in th e b ills b e in g o ff e r e d i f su ch p o s it io n is in e x c e s s o f $2 0 0 m illio n . T h i s in f o 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 sin e ss o n the d a y p r i o r to the 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 ” t r a d in g , a n d fu tu r e s a n d f o r w a r d t r a n s a c t io n s a s w e ll a s h o ld in g s o f o u t s t a n d in g b ills w it h the s a m e m a tu r ity 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 re e m o n t h s to m a tu r ity p r e v io u s ly o f f e r e d a s s i x m o n t h b ills . D e a le r s w h o m a k e p r im a r y m a r k e ts in G o v e r n m e n t s e c u r it ie 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 th e ir p o s it io n s in a n d b o r r o w i n g s o n su ch s e c u r it ie s , w h e n s u b m it t in g t e n d e rs f o r c u s t o m e r s , m u s t s u b m it a se 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 w h o s e n et l o n g p o s it io n in the b ill b e in g o f f e r e d e x c e e d s $ 2 0 0 m illio 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 u s t a c c o m p a n y a ll t e n d e rs su b m itte d f o r b ills t o bfc m a in ta in e d o n the 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 ju s t m e n t w ill b e m a d e o n a ll a c c e p t e d t e n d e rs f o r th e d iffe r e n c e b e t w e e n th e p a r p a y m e n t su b m itte d a n d th e a c tu a l issu e p r ic e a s d e te r m in e d in th e a u ctio n . N o d e p o s it n e e d a c c o m p a n y t e n d e rs f r o m i n c o r p o r a t e d b a n k s a n d tru 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 in v e s t m e n t 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 re co rd s o f F ed era l R eserv e B an k s and B ran ch es. P u b l i c a n n o u n c e m e n t w ill b e m a d e b y th e D e p a r t m e n t o f th 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 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 t iv e b id d e r s w ill b e a d v is e d o f the a c c e p t a n c e o r r e je c t i o n o f th e ir te n d e rs . T h e S e c r e t a r y o f the 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 je c t a n y o r a ll te n d e rs , in w h o le o r in p a rt, a n d the S e c r e t a r y ’ s a c t io n sh a ll b e fin a l. S u b je c t t o th e se r e s e r v a tio n s , n o n c o m p e t it iv e t e n d e rs f o r e a c h issu e f o r $ 5 0 0 ,0 0 0 o r le ss w it h o u t s ta te d p r ic e f r o m a n y o n e b id d e r w ill b e a c c e p t e d in fu ll a t the w e ig h t e d a v e r a g e p r ic e ( i n th r e e d e c im a ls ) o f a c c e p t e d c o m p e t it iv e b id s f o r th e r e s p e c t iv e issu es. S e tt le m e n t f o r a c c e p t e d t e n d e rs f o r b ills t o b e m a in ta in e d o n the b o o k - e n t r y r e c o r d s o f 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 m u st b e m a d e o r c o m p le t e d at 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 on F e b r u a r y 5, 1981, in c a s h o r o t h e r im m e d ia t e ly a v a ila b le fu n d s o r in T r e a s u r y b ills m a t u r in g F e b r u a r y 5, 1981. C a s h a d ju s t m e n ts w ill be m a d e f o r 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 the m a tu r in g b ills a c c e p t e d in e x c h a n g e a n d the issu e p r ic e o f th e n e w b ills. 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 In t e r n a l R e v e n u e C o d e o f 1954 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 se b ills a r e so ld is c o n s id e r e d t o a c c r u e w h e n the b ills a r e s o ld , 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 the b ills a re e x c lu d e d f r o m c o n s id e r a t io n a s c a p ita l a ss e ts. A c c o r d i n g l y , th e o w n e r o f th e se b ills ( o t h e r than life in s u r a n c e c o m p a n ie s ) m u st in c lu d e in h is o r h e r F e d e r a l in c o m e t a x re tu rn , 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 t w e e n th e p r ic e p a id f o r the b ills , w h e th e r o n o r ig in a l issu e o r o n s u b se q u e n t p u r ch a s e , a n d th e a m o u n t a c t u a lly r e c e iv e d e it h e r u p o n sale o r r e d e m p tio n at m a tu r ity d u r in g th e t a x a b le y e a r f o r w h ic h the r e tu rn is m a d e. D e p a r tm e n t o f the 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 th is n o t ic e , p r e s c r ib e th e t e rm s o f th e se T r e a s u ry b ills a n d g o v e r n the c o n d it io n s o f t h e ir issu e . C o p ie s o f the c ir c u la r s a n d te n d e r f o r m s m a y be o b ta in e d f r o m a n y 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 r f r o m the B u r e a u o f the 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, February 2, 1981, 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 “ T en 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 jor 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 nthony M. S olomon, President. ( o ver) RESULTS OF LA ST W E E K L Y OFFERING OF TR E A SU R Y BILLS (T W O SERIES TO BE ISSUED J A N U A R Y 29, 1981) Range o f A ccepted Com petitive Bids 9 i-D ay Treasury Bills Maturing April 30 , 19 8 1 H ig h ............................................... L o w ................................................ A v era g e......................................... Price 96.179 96.145 96.158 Discount Rate 15.116% 15.251% 15.199% 18 2 -Day Treasury Bills Maturing July 30 , 19 8 1 Investment Rate1 15.93% 16.08% 16.03% Price 92.881 92.843 92.861 Discount Rate 14.082% 14.157% 14.121% Investment Rate1 15.37% 15.46% 15.42% 1 E q u iv a le n t c o u p o n -is s u e y ie ld . (17 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 A ccepted 9 1 -Day Treasury Bills Maturing April 30 , 19 8 1 By F.R. District (and U S . Treasury) Received 54,200,000 B oston .......................................... $ New Y o r k ................................... 6,963,220,000 99,375,000 Philadelphia................................ 63,255,000 Cleveland.................................... R ich m on d................................... 105,405,000 A tlanta......................................... 69,635,000 C h icago....................................... 566,555,000 St. L o u is ..................................... 36,090,000 M inneapolis............................. 17,390,000 Kansas C ity ........................... 58,330,000 D allas...................................... 23,475,000 San F ran cisco......................... 430,420,000 U.S. T reasu ry............................ T o t a l s ........................... $ Accepted 53,350,000 3,255,290,000 99,375,000 55,255,000 104,825,000 69,635,000 114,805,000 26,015,000 17,390,000 57,605,000 23,475,000 283,040,000 18 2 -Day Treasury Bills Maturing July 30 , 19 8 1 $ Received 66,420,000 7,013,890,000 21,135,000 27,290,000 94,400,000 46,415,000 801,800,000 33,645,000 15,525,000 36,300,000 12,475,000 509,455,000 $ Accepted 31,420,000 3,400,115,000 21,135,000 27,290,000 73,400,000 46,385,000 233,595,000 22,895,000 12,525,000 36,300,000 10,475,000 256,455,000 140,030,000 140,030,000 128,220,000 128,220,000 $8,627,380,000 $4,300,090,000 $8,806,970,000 $4,300,210,000 $6,432,915,000 903,330,000 $2,405,625,000 903,330,000 $6,406,945,000 611,825,000 $2,200,185,000 611,825,000 $7,336,245,000 895,335,000 395,800,000 $3,308,955,000 595,335,000 395,800,000 $7,018,770,000 800,000,000 988,200,000 $2,812,010,000 500,000,000 988.200,000 $8,627,380,000 $4,300,090,000 $8,806,970,000 $4,300,210,000 B y c la s s o f b id d er Public Com petitive.......................... N oncom petitive.................... S u b t o t a l s ........................ Federal R eserve......................... Foreign Official Institutions ... T otals ......................... .....
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