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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States OFFERING OF T W O SERIES OF TR E A SU R Y BILLS [ Circular No. 9 0 3 0 1 March 4, 1981 J $4,300,000,000 of 91-Day Bills, To Be Issued March 12, 1981, Due June 11, 1981 $4,300,000,000 of 182-Day Bills, To Be Issued March 12, 1981, Due September 10, 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 $8,600 million, to be issued March 12, 1981. This offering will pro vide $725 million of new cash for the Treasury as the maturing bills are outstanding in the amount of $7,881 million, including $1,492 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities, and $1,937 million currently held by Federal Reserve Banks for their own account. The two series offered are as follows: 91-day bills (to maturity date) for approximately $4,300 million, representing an additional amount of bills dated December 11, 1980, and to mature June 11, 1981 (CUSIP No. 912793 6U5), currently outstanding in the amount of $4,038 million, the additional and original bills to be freely interchangeable. 182-day bills (to maturity date) for approximately $4,300 million, representing an additional amount of bills dated September 16, 1980, and to mature September 10, 1981 (CUSIP No. 912793 6Y7), currently outstanding in the amount of $4,007 million, the additional and original bills to be freely interchangeable. Both series of bills will be issued for cash and in exchange for Treasury bills maturing March 12, 1981. Tenders from Federal Reserve Banks for themselves and as agents for 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 for 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, March 9, 1981. 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 Treasury. 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 as of 12 :30 p.m., Eastern time, on the day of the auction. Such positions would include 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. Deaiers, who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions in and borrow ings on such securities, when submitting tenders for customers, 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 of 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 March 12, 1981, in cash or other immediately available funds or in Treasury bills maturing March 12, 1981. 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, March 9, 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 “ 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 nthony M . S olomon, President. ( over) RESULTS OF L A ST W E E K L Y OFFERING OF T R E A SU R Y BILLS (T W O SERIES TO BE ISSUED M A R C H 5, 1981) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing September 3, 1981 91 -Day Treasury Bills Maturing June 4, 1981 H ig h .................................................. L o w ................................................... A verage............................................ Price Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 96.355a 96.335 96.344 14.420% 14.499% 14.463% 15.17% 15.26% 15.22% 92.871 92.848 92.855 14.101% 14.147% 14.133% 15.39% 15.45% 15.43% 1 Equivalent coupon-issue yield, a Excepting one tender of $625,000. (50 percent of the amount of 91-day bills bid for at the low price was accepted.) (33 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 June 4, 1981 By F.R. District ( and U S . Treasury) 182-Day Treasury Bills Maturing September 3, 1981 Received Accepted Received $ 51,250,000 3,548,085,000 29,385,000 44,005,000 38,170,000 51,550,000 211,835,000 30,475,000 10,670,000 48,265,000 16,715,000 95,750,000 $ 39,270,000 8,418,415,000 19,130,000 147,560,000 65,220,000 35,470,000 567,830,000 27,725,000 9,030,000 32,970,000 20,400,000 573,835,000 Accepted B o ston .......................................... New Y o rk ................................... Philadelphia................................ Cleveland.................................... Richmond.................................... A tlan ta......................................... C hicago........................................ St. L o u is...................................... Minneapolis................................ Kansas C ity ................................ D alla s........................................... San Francisco............................. $ 51,250,000 6,640,840,000 31,935,000 47,725,000 39,170,000 55,230,000 579,835,000 38,475,000 10,670,000 48,380,000 16,715,000 518,580,000 $ 32,570,000 3,696,955,000 17,630,000 32,060,000 31,400,000 33,070,000 46,830,000 17,225,000 9,030,000 32,460,000 15,400,000 217,335,000 U .S. T reasu ry............................ 124,035,000 124,035,000 122,065,000 122,065,000 T o t a l s ............................... $8,202,840,000 $4,300,190,000 $10,078,920,000 $4,304,030,000 Public Competitive............................ Noncompetitive..................... $5,759,440,000 811,215,000 $1,856,790,000 811,215,000 $ 7,296,270,000 562,250,000 $1,521,380,000 562,250,000 S u bto ta ls ......................... Federal R eserve......................... Foreign Official Institutions.... $6,570,655,000 827,285,000 804,900,000 $2,668,005,000 827,285,000 804,900,000 $ 7,858,520,000 820,000,000 1,400,400,000 $2,083,630,000 820,000,000 1,400,400,000 T o t a l s ................................. $8,202,840,000 $4,300,190,000 $10,078,920,000 $4,304,030,000 By class of bidder
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