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FED ER A L R ESER VE BANK O F N E W YORK Fiscal Agent of the United States r Circular No. 9 0 5 9 1 OFFERING OF TWO SERIES OF TREASURY BILLS L April 22, 1981 J $4,000,000,000 of 91-Day Bills, To Be Issued April 30, 1981, Due July 30, 1981 $4,000,000,000 of 182-Day Bills, To Be Issued April 30, 1981, Due October 29, 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 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 t e n d e r s 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 ,0 0 0 m illio n , t o be is s u e d A p r i l 30, 1981. T h is o f f e r i n g w ill r e s u lt in a p a y d o w n f o r th e T r e a s u r y o f a b o u t $ 2 5 0 m illio n , a s th e r e g u la r 1 3 -w e e k a n d 2 6 - w e e k b ill m a tu r itie s w e r e is s u e d in the a m o u n t o f $8,261 m illio n . T h e $ 4 ,0 0 0 m illio n o f a d d itio n a l issu e 1 2 0 -d a y c a s h m a n a g e m e n t b ills is s u e d D e c e m b e r 31, 1980, a n d m a t u r in g A p r i l 30, 1981, w ill b e r e d e e m e d a t m a tu r ity . T h e $ 8 ,2 6 1 m illio n o f r e g u la r m a tu r itie s in c lu d e s $ 2 ,0 7 5 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 ,483 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 t h e ir o w n a c c o u n t . T h e t w o s e 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 ,0 0 0 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 J a n u a r y 29, 1981, a n d t o m a tu r e J u ly 30, 1981 C U S IP N o . 9 1 2 7 9 3 7 N 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 ,3 3 0 m illio n , th e a d d itio n a l a n d o r ig in a l b ills to b e 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 ,0 0 0 m illio n , t o b e d a te d A p r i l 30, 1981, a n d t o m a tu r e O c t o b e r 2 9 , 1981 ( C U S I P N o . 912793 7 Y 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 A p r i l 30, 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 fo 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 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 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 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 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 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 t u r in g b ills h e ld b y th em . 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 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 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 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 l i c D e b t , W a s h i n g t o n , D .C . 2 0 226. u p t o 1 :3 0 p .m ., E a s t e r n D a y l i g h t S a v i n g tim e , M o n d a y , A p r i l 2 7 , 1981. F 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 t e 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 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 reasu 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 t h r e e d e c im a ls , e .g ., 9 9 .9 2 5 . F r a c t i o n s m a y n o t be used. 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 t h 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 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 , i f th e 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 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 su b m it t e n d e r s 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 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 1 2 :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 ” tr 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 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 t h 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 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 t s 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 the 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 ir p o s itio n s in a n d b o r r o w in g s o n s u c h 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 s e 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 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 st a c c o m p a n y a ll te n d e rs s u b m itte d 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 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 tu 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 te 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 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 e d e ra l R e se rv e B an k s an d 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 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 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 s e r e s e r v a tio 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 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 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 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 a t 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 A p r i l 30, 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 tu r in g A p r i l 30, 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 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 . 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 the I n t e r n a l R e v e n u e C o d e o f 19 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 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 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 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 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 r e 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 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 a t 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 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 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 se 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 th 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 Daylight Saving time, Monday, April 27, 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 hills cannot he 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 n t h o n y M. S o l o m o n , P re s id e n t. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO B E ISSUED APRIL 23, 1981) R a n g e o f A c c e p t e d C o m p e titiv e B id s 91-Day Treasury Bills Maturing July 23, I98I Price 96.593a 96.553 96.574 H ig h .................................................. L o w ................................................... A v era g e............................................ Discount Rate 13.478% 13.636% 13.553% 182-Day Treasury Bills Maturing October 22, I98I Investment Rate1 14.15% 14.32% 14.23% Price 93.150b 93.091 93.114 Discount Rate 13.549% 13.666% 13.621% Investment Rate1 14.75% 14.88% 14.83% 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 t h r e e t e n d e r s t o t a lin g $ 3 ,6 8 5 ,0 0 0 . b E x c e p t i n g t h r e e te n d e rs t o t a lin g $ 2 0 0 ,0 0 0 . (60 percent of the amount of 182-day bills bid for at the low price was accepted.) (63 percent of the amount of 91-day bills bid for at the low price was accepted.) T o ta l T e n d e rs R e c e iv e d a n d A c c e p te d 182 -Day Treasury Bills Maturing October 22, 198 I Accepted Received 91 -Day Treasury Bills Maturing July 23, I 98I Accepted Received By F.R. District (and US. Treasury) 2,702,645,000 37,285,000 5,636,125,000 41,175,000 $ $ 37,285,000 N ew Y o r k ..................................... P h iladelp h ia .................................. 38,095,000 37,995,000 22,775,000 70,865,000 45,865,000 48,580,000 48,285,000 56,925,000 56,925,000 45,630,000 45,630,000 C lev ela n d ....................................... R ic h m o n d ...................................... A tla n ta ............................................ C h ic a g o ........................................... St. L o u i s ........................................ M in n eap olis................................... Kansas C it y ................................... $ $ 41,175,000 5,638,145,000 B o s t o n ............................................. 2,958,725,000 22,775,000 61,730,000 61,730,000 53,990,000 53,080,000 794,545,000 43,160,000 453,220,000 39,160,000 404,980,000 215,980,000 36,455,000 27,955,000 14,830,000 59,940,000 17,375,000 42,985,000 17,375,000 42,585,000 14,830,000 64,410,000 D a lla s.............................................. 31,790,000 25,240,000 San F r a n c is c o ............................... 423,700,000 250,700,000 20,310,000 485,190,000 20,260,000 300,190,000 U .S. T r e a s u r y .............................. 211,300,000 211,260,000 209,875,000 209,875,000 T o t a l s .................................. $7,490,670,000 $4,000,685,000 $7,061,555,000 $4,000,000,000 Public C om p etitiv e.............................. $5,206,460,000 $1,716,475,000 N on com p etitiv e ....................... 978,280,000 978,280,000 $4,353,275,000 817,580,000 $1,291,720,000 817,580,000 $2,109,300,000 By class of bidder S u b t o t a l s ........................... $6,184,740,000 $2,694,755,000 $5,170,855,000 Federal R e s e r v e ................. ........ 827,830,000 827,830,000 600,000,000 600,000,000 F oreign Official In stitu tion s.... 478,100,000 478,100,000 1,290,700,000 1,290,700,000 $7,490,670,000 $4,000,685,000 $7,061,555,000 $4,000,000,000 T o t a l s .......................................
@FedFRASER