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FE D E R A L R ESER VE BANK O F N E W YORK Fiscal Agent of the United States [ Circular No. 9 0 9 9 1 Ju ly 1, 1981 J OFFERING OF TWO SERIES OF TREASURY BILLS $4,000,000,000 of 91-Day Bills, To Be Issued July 9, 1981, Due October 8, 1981 $4,000,000,000 of 182-Day Bills, To Be Issued July 9, 1981, Due January 7, 1982 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 tw o series of Treasury bills totaling approximately $8,000 million, to be issued July 9, 1981. This offering will result in a paydown for the Treasury of about $575 million, as the maturing bills are outstanding in the amount of $8,585 million, including $1,438 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $1,663 m illion currently held by Federal Reserve Banks for their own account. The two series offered are as fo llo w s: 91-day bills (to maturity date) for approximately $4,000 million, representing an additional amount of bills dated October 14, 1980, and to mature October 8, 1981 (C U S I P N o. 912793 6Z 4 ), currently outstanding in the amount of $8,346 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,000 million, to be dated July 9, 1981, and to mature January 7, 1982 (C U S IP N o. 912794 A A 2 ). Both series of bills w ill be issued for cash and in exchange for Treasury bills maturing July 9, 1981. Tenders from Federal Reserve Banks for themselves and as agents for foreign and international 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, W ashington, D.C. 20226, up to 1 :30 p.m., Eastern D aylight Saving time, Monday, July 6, 1981. Form P D 4632-2 (for 26-week series) or Form P D 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 N ew 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 wed 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-m onth bills. Dealers, who make primary markets in Government securities and report daily to the Federal Reserve Bank of N ew Y ork 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 decim als) 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 July 9, 1981, in cash or other immediately available funds or in Treasury bills maturing July 9, 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 w i.l receive tenders for both .tie s u p * 1.30 P - ^ - D a ^ h t Sa™ g ti^ M o n d a ^ J u ty 6, 1981- f ‘a 'p k asT u se5 th ^ appropriate forms to submit tenders and return them in the enclosed envelope marked “Tenare enclosed^Please u _ h pp submitt; tenders directly to the Treasury are available from the Government der f°r Treasufy f R , Tenders not requiring a deposit may be submitted by telegraph, subject to written Bond Division of this B a n k .J Submitted bv telephone. Payment for Treasury bills cannot be made by credit confirmation; no ten ers^ ^ y A c c o u n i , Settlement must be made in cash or other immediately available funds 1 r°in Treasury securities maturing on or before the issue date. r I suS of the last weekly offering of Treasury bills a rt shown on the reverse side of this circular. A n t h o n y M . S olom on, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 2, 1981) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing October 1 , 19 8 1 18 2 -Day Treasury Bills Maturing December 3 1 , 19 8 1 Price H ig h .... L o w ..... Average Discount Rate Investment Rate1 96.512 96.467 96.484 13.799% 13.977% 13.909% 14.50% 14.69% 14.62% Price 93.126^ 93.105 93.114 Discount Rate Investment 13.597% 13.638% 13.621% 14.80% 14.85% 14.83% Rate1 1 Equivalent coupon-issue yield, a Excepting 1 tender of $50,000. (62 percent of the amount of 182-day bills bid for at the low price was accepted.) (68 percent of the amount of 91-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing October 1 , 1 9 8 1 B y F .R . D i s t r i c t ( a n d U S . T r e a s u r y ) 18 2 -Day Treasury Bills Maturing December 3 1 , 19 8 1 R e c e iv e d A c c e p te d R e c e iv e d 40,720,000 3,093,505,000 31,325,000 37,765,000 37,520,000 48,305,000 387,610,000 18,420,000 8,385,000 38,930,000 23,825,000 87,170,000 62,460,000 8,225,305,000 17,035,000 23,700,000 30,070,000 49,680,000 617,330,000 24,415,000 7,860,000 33,970,000 15,290,000 563,815,000 A c c e p te d B o s to n ............................................ New Y o r k .................................... P h ila d e lp h ia ................................. C lev elan d ...................................... R ic h m o n d ..................................... A tla n ta ........................................... C h ic a g o .......................................... St. L o u is ....................................... M in n eap o lis.................................. K ansas C ity .................................. D a lla s ............................................. S an F ra n c is c o .............................. U.S. T r e a s u r y ............................. 146,580,000 146,580,000 112,820,000 112,820,000 $8,425,510,000 $4,000,060,000 $9,783,750,000 $4,003,545,000 $6,296,725,000 765,695,000 $1,871,275,000 765,695,000 $7,501,530,000 550,720,000 $1,721,325,000 550,720,000 $7,062,420,000 852,190,000 510,900,000 $2,636,970,000 852,190,000 510,900,000 $8,052,250,000 800,000.000 931,500,000 $2,272,045,000 800,000,000 931,500,000 $8,425,510,000 $4,000,060,000 $9,783,750,000 $4,003,545,000 T o t a l s ................................. $ $ $ 46,620,000 6,824,380,000 31,325,000 43,105,000 39,520,000 48,305,000 648,560,000 23,420,000 8,385,000 39,315,000 28,825,000 497,170,000 $ 36,560,000 3,540,475,000 16,535,000 23,175,000 25,570,000 32,680,000 46,830,000 19,165,000 7,860,000 31,470,000 10,290,000 100,115,000 B y c la s s o f b id d e r Public C o m p etitiv e............................. N o n co m p etitiv e...................... S ubtotals .......................... F ederal R e s e rv e .......................... Foreign Official Institutions.... T o t a l s ........................................
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