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FE D E R A L R E SE R V E B A N K O F N E W YO R K Fiscal Agent of the United States r Circular No. 9 0 9 1 1 L June 17, 1981 J OFFERING OF TWO SERIES OF TREASURY BILLS $4,000,000,000 of 91-Day Bills, To Be Issued June 25, 1981, Due September 24, 1981 $4,000,000,000 of 182-Day Bills, To Be Issued June 25, 1981, Due December 24, 1981 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: 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 $8,000 million, to be issued June 25, 1981. This offering will result in a paydown for the Treasury of about $350 million, as the regular 13-week and 26-week bill maturities were issued in the amount of $8,353 million. The $6,003 million of additional issue 20-day cash management bills issued June 5, 1981, and maturing June 25, 1981, will be redeemed at maturity. The $8,353 million of regular maturities includes $1,585 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $2,024 million currently held by Federal Reserve Banks for their own account. The two series offered are as follow s: 91-day bills (to maturity date) for approximately $4,000 million, representing an additional amount of bills dated March 26, 1981, and to mature September 24, 1981 (C U SIP No. 912793 7U 4), currently outstanding in the amount of $4,322 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,000 million, to be dated June 25, 1981, and to mature December 24, 1981 (C U S IP No. 912793 8E 9). Both series of bills will be issued for cash and in exchange for Treasury bills maturing June 25, 1981. Tenders from Federal Re serve Banks for themselves and as agents for foreign and interna tional 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 aggre gate amounts 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 Daylight Saving time, Monday, June 22, 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. Dealers, 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. N o 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 June 25, 1981, in cash or other immediately available funds or in Treasury bills maturing June 25, 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 Daylight Saving time, Monday, June 22, 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 LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 18, 1981) Range of Accepted Competitive Bids 182-Day Treasury Bills Maturing December 17, 1981 91-Day Treasury Bills Maturing September 17, 1981 Price H igh............................................ Low .............................................. Average........................................ 1 96.696 96.578 96.600 Investment R ate1 Discount Rate 13.071% 13.538% 13.451% Price Discount Rate Investment R ate1 13.71% 14.21% 14.12% 93.302 93.226 93.248 13.249% 13.399% 13.356% 14.40% 14.57% 14.52% Equivalent coupon-issue yield. (36 percent of the amount of 91-day bills bid. for at the low price was accepted.) (22 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 182-Day Treasury Bills Maturing December 17, 1981 91-Day Treasury Bills Maturing September 17, 1981 Received B y F.R. D istrict (and U S . Treasury) Boston...................................... New Y ork................................ Philadelphia............................. Cleveland................................. Richmond................................ Atlanta..................................... Chicago.................................... St. Louis.................................. Minneapolis............................. Kansas City............................. Dallas....................................... San Francisco.......................... U.S. Treasury......................... T o t a l s ........................................ $ 50,675,000 6,434,745,000 41,315,000 56,070,000 50,010,000 52,240,000 496,265,000 35,445,000 15,420,000 44,675,000 25,265,000 498,030,000 Received Accepted $ 42,725,000 3,324,375,000 39,105,000 51,035,000 42,045,000 50,500,000 128,240,000 20,645,000 10,420,000 40,595,000 20,265,000 56,580,000 $ Accepted 48,935,000 5,704,560,000 68,355,000 41,255,000 34,725,000 32,655,000 626,475,000 21,695,000 15,285,000 32,335,000 14,430,000 611,860,000 $ 41,335,000 3,299,200,000 18,355,000 41,255,000 34,725,000 32,655,000 128,520,000 17,695,000 15,285,000 32,335,000 12,430,000 176,860,000 173,585,000 173,585,000 149,420,000 149,420,000 $7,973,740,000 $4,000,115,000 $7,401,985,000 $4,000,070,000 $5,645,335,000 885,075,000 $1,671,710,000 885,075,000 $4,705,070,000 615,915,000 $1,303,155,000 615,915,000 $6,530,410,000 1,159,130,000 284,200,000 $2,556,785,000 1,159,130,000 284,200,000 $5,320,985,000 1, 100 ,000,000 981,000,000 $1,919,070,000 1, 100 ,000,000 981,000,000 $7,973,740,000 $4,000,115,000 $7,401,985,000 $4,000,070,000 By class of bidder Public Competitive......................... Noncompetitive................... S u b t o t a l s ..................... Federal Reserve.................. Foreign Official Institutions .... T o t a l s ........................................
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