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FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent of the United States f Circular No. 9 0 1 9 1 L February 18, 1981 J OFFERING OF T W O SERIES OF T R E A SU R Y BILLS $4,300,000,000 of 91-Day Bills, To Be Issued February 26, 1981, Due May 28, 1981 $4,300,000,000 of 182-Day Bills, To Be Issued February 26, 1981, Due August 27, 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: T h e D e p a r tm 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 t e 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 26 , 1981. T h i s o f f e r i n g w ill p r o v id e $ 6 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 a s th e m a tu r in g b ills w e r e o r i g i n a l l y is s u e d in th e a m o u n t o f $ 7 ,9 6 6 m illio n . T h e t w o se r ie s o ff 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 ,300 m illio n , r e p r e s e n t in g a n 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 28 , 1980, a n d t o m a tu r e M a y 2 8 , 1981 ( C U S I P N o . 9 1 2 7 9 3 6 S 0 ) , 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 ,2 1 5 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 b e fr e e ly 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 26, 1981, a n d t o m a tu r e A u g u s t 27 , 1981 ( C U S I P N o . 912793 7 R 1 ) . 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 26 , 1981. I n a d d itio n t o th e m a tu r in g 1 3 -w e e k a n d 2 6 -w e e k b ills , th e r e a re $ 4 ,0 2 0 m ilio n o f m a t u r in g 5 2 -w e e k b ills . T h e d is p o s it io n o f th is la tte r a m o u n t w a s a n n o u n c e d 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 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 , c u r r e n t ly h o ld $ 2 ,2 1 6 m i l lio n , a n d 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 h o ld $ 2 ,9 9 5 m illio n o f the m a t u r in g b ills . T h e s e a m o u n ts r e p r e s e n t th e c o m b in e d h o ld in g s o f su ch a c c o u n t s f o r th e th r e e issu es o f m a tu r in g b ills . 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 as a g e n ts f o r fo 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 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 be 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 ts f o r fo 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 a t the a g g r e g a t e a m o u n t o f te n d e rs f o r su ch 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 tu r in g b ills h e ld b y th e m . F o r p u r p o s e s o f d e te r m in in g su ch a d d itio n a l a m o u n ts , 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 a re c o n s id e r e d to h o ld $ 1 ,9 8 8 m illio n o f the o r ig in a l 1 3 -w e e k a n d 2 6 -w e e k issu e s. T h e b ills w ill be 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 a t m a tu r ity th e ir p a r a m o u n t w ill be p a y a b le w it h o u t in t e r e s t. B o t h se 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 fo 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 ltip 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 th e D e p a r tm e n t o f th e T r e a s u r y . l 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 l i c D e b t , W a s h in 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 ta n d a r d tim e, M o n d a y , F e b r u a r y 2 3 , 1981. h o r m P D 4 6 3 2 -2 ( f o r 2 6 -w e e k s e r ie 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 b e u s e d t o s u b m it te n d e rs f o r b ills t o be 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 the D e p a r tm e n t o f the T rea su ry . 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 te n d e rs f o r t h 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 l o n g p o s it io n in th e b ills b e in g o f f e r e d i f s u 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 s o f 12 :30 p .m ., E a s t e r n tim e , o n th e d a y o f th e a u c t io n . S u c h p o s it io 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 th e 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 t h r e e m o n t h s t o 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 in 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 t e 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 e t l o n g p o s it io n in th e 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 s u b m itte d f o r b ills t o b e m a in t a 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 c a s h 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 r s 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 s u b m itte d a n d th e a c t u a l issu e p r ic e a s d e te r m in e d in th e a u c t io 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 in c o r p o r a t e d b a n k s a n d t r 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 i z 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 to b e m a in t a in e d o n th e b o o k - e n t r y record s o f F ederal R eserve B an ks and B ranches. 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 tiv 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 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 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 je c t a n y o r a ll te n d e r s , 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 s h a ll b e fin a l. S u b je c t t o th e s e r e s e r v a t io n s , n o n c o m p e t it iv e te 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 s s w it h o u t sta 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 th e w e ig h t e d a v e r a g e p r ic e ( i n t h r e e d e c i m a l s ) 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 te n d e rs f o r b ills t o b e m a in t a in e d o n the b o o k -e n tr y re co r d s o f F e d e ra l R e s e rv e B a n k s an d B ra n ch e s m ust 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 o n F e b r u a r y 26, 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 26, 1981. C a s h a d ju s t m e n ts w ill b e 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 th e m a t u 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 th e issu e p r ic e o f th e n e w b ills . 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 0,00 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 ,000 . I n th e c a s e o f c o m p e t it iv e t e n d e rs th e p r ic e o ff 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 .925 . F r a c t io n s m a y n o t b e u sed. 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 54 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 id e r e d t o a c c r u e w h e n th e 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 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 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 s e b ills ( o t h e r th a n life in s u r a n c e c o m p a n ie s ) m u s t 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 th e b ills , w h e t h e r o n o r ig in a l issu e o r o n s u b s e 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 th e r e tu rn is m a d e . 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 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 m a y su b m it te 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 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 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 s u r y 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 th e c ir c u la r s a n d t e n d e r f o r m s m a y b e o b t a 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 th e B u r e a u o f th e P u b l i c D e b t . This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday February 23 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 “ TentT i 1_T^e? sury B1ll.ls-’’ F ° rms f° r submitting tenders directly to the Treasury are available from the Government Pond Division of this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to written S nhrnlaV/0nV n° tend£fs may be submitted by telephone. Payment for Treasury bills cannot be made by credit through the 1 reasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in 1 reasury 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, P resident. ( o ver) 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 F E B R U A R Y 19, 1981) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing May 21, 1981 H ig h ................................ ................ L o w ................................. ................ A verage............................................ 182-Day Treasury Bills Maturing August 20, 1981 Price Discount Rate Investment Rate 1 Price Discount Rate Investment Rate 1 96.107 96.085 96.091 15.401% 15.488% 15.464% 16.25% 16.34% 16.32% 92.568 92.522 92.538 14.701% 14.792% 14.760% 16.10% 16.21% 16.17% 1 E q u iv a le n t c o u p o n -is s u e y ie ld . (68 percent of the amount of 91-day bills bid for at the low price was accepted.) (65 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 May 21,1981 By F.R. District (and U S . Treasury) Received Accepted 182-Day Treasury Bills Maturing August 20, 1981 Received Accepted B o ston .......................................... New Y o rk ................................... Philadelphia................................ Cleveland..................................... Richmond.................................... A tlan ta......................................... Chicago........................................ St. L o u is...................................... Minneapolis................................ Kansas C ity ................................ D alla s........................................... San Francisco............................. $ 136,100,000 7,424,040,000 52,695,000 48,330,000 40,150,000 51,115,000 390,135,000 20,740,000 5,525,000 37,185,000 16,210,000 404,045,000 $ 41,340,000 3,749,040,000 26,535,000 44,505,000 35,705,000 48,440,000 51,430,000 19,740,000 5,525,000 29,970,000 16,210,000 102,895,000 $ 48,690,000 7,068,145,000 15,980,000 80,255,000 26,640,000 32,510,000 388,020,000 11,875,000 7,060,000 42,940,000 12,365,000 351,855,000 $ 28,690,000 3,865,145,000 13,480,000 59,255,000 25,640,000 32,510,000 44,920,000 10,875,000 7,060,000 35,865,000 12,365,000 58,855,000 U .S. T reasu ry ............................ 130,135,000 130,135,000 106,365,000 106,365,000 o t a l s ............................... $8,756,405,000 $4,301,470,000 $8,192,700,000 $4,301,025,000 Public Competitive............................ Noncompetitive..................... $6,592,805,000 705,025,000 $2,137,870,000 705,025,000 $5,972,700,000 444,800,000 $2,081,025,000 444,800,000 S u b t o t a l s ......................... Federal R eserve......................... Foreign Official Institutions .... $7,297,830,000 911,975,000 546,600,000 $2,842,895,000 911,975,000 546,600,000 $6,417,500,000 800,000,000 975,200,000 $2,525,825,000 800,000,000 975,200,000 $8,756,405,000 $4,301,470,000 $8,192,700,000 $4,301,025,000 T By class of bidder T o t a l s ........................................
@FedFRASER