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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9105 July 8, 1981 O FFE R IN G OF TW O SERIES OF T R E A SU R Y BILLS $4,000,000,000 of 91-Day Bills, To Be Issued July 16, 1981, Due October 15, 1981 $4,000,000,000 of 182-Day Bills, To Be Issued July 16, 1981, Due January 14, 1982 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Follow ing is the text o f a notice issued by the Treasury D epartm ent: The Department o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approximately $8,000 million, to be issued July 16, 1981. This offering will result in a paydown for the Treasury o f about $375 million, as the maturing bills were originally issued in the amount o f $8,372 million. The two series offered are as follows: 91-day bills (to maturity date) for approximately $4,000 million, representing an additional amount o f bills dated April 16, 1981, and to mature October 15, 1981 (CUSIP No. 912793 7W0), currently outstanding in the amount of $4,047 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,000 million, to be dated July 16, 1981, and to mature January 14, 1982 (CUSIP No. 912794 ABO). Both series o f bills will be issued for cash and in exchange for Treasury bills maturing July 16, 1981. In addition to the maturing 13-week and 26-week bills, there are $4,005 million o f maturing 52-week bills. The disposition o f this latter amount was announced last week. Federal Reserve Banks, as agents for foreign and international monetary authorities, currently hold $2,034 million, and Federal Reserve Banks for their own account hold $2,517 million o f the maturing bills. These amounts represent the combined holdings o f such accounts for the three issues o f maturing bills. Tendens 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 o f the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount o f tenders for such accounts exceeds the aggregate amount o f maturing bills held by them. For purposes o f determining such additional amounts, foreign and international monetary authorities are considered to hold $1,801 million o f the original 13-week and 26-week issues. The bills will be issued on a discount basis under competitive and non competitive bidding, and at maturity their par amount will be payable without interest. Both series o f bills will be issued entirely in book-entry form in a minimum amount o f $10,000 and in any higher $5,000 multiple, on the records either o f the Federal Reserve Banks and Branches, or of the Department o f the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public Debt, Washington, D.C. 20226, up to 1:30 p.m ., Eastern Daylight Saving time, Monday, July 13, 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 o f the Department o f the Treasury. Each tender must be for a minimum o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. In the case o f 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 sub mit tenders for account o f customers, if the names o f the customers and the amount for each customer are fbrnished. Others are only permitted to submit tenders for their own account. Each tender must state the amount o f any net long position in the bills being offered if such position is in excess o f $200 million. This information should reflect positions held as o f 12:30 p.m., Eastern time, on the day o f the auction. Such positions would include bills acquired through “ whbn issued” trading, and futures and forward transactions as well as holdings o f 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 o f New York their positions in and borrowings on such securities, when submitting tenders for customers, must submit a separate tender for each customer whose net long position in the bills being offered exceeds $200 million. Payment for the full par amount o f the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records o f the Department o f 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 invest ment 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. Competitive bidders will be advised o f the acceptance or rejection o f their tenders. The Secretary o f 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. Sub ject 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 com petitive bids for the respective issues. Settlement for accepted tenders for bills to be maintained on the bookentry records o f Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on July 16, 1981, in cash or other immediately-available funds or in Treasury bills maturing July 16, 1981. Cash adjustments will be made for differences between the par value o f the maturing bills accepted in exchange and the issue price of the new bills. Under Sections 454(b) and 1221(5) o f the Internal Revenue Code of 1954 the amount o f discount at which these bills are sold is considered to accrue when the bills are sold, redeemed, or otherwise disposed of, and the bills are excluded from consideration as capital assets. Accordingly, the owner o f these bills (other than life insurance companies) must include in his or her Federal income tax return, as ordinary gain or loss, the dif ference between the price paid for the bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made. Department o f the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, and this notice, prescribe the terms o f these Treasury bills and govern the conditions o f their issue. Copies o f the circulars and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public Debt. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, July 13, 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 “ Tender 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 fo r 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 n t h o n y M. So l o m o n , President. (O V E R ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 9, 1981) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing October 8, 1981 Price Investment Rate' 96.392 96.347 96.360 H ig h ............................ ................ Low ............................ ................ A v erag e...................... ................ Discount Rate 14.273% 14.451% 14.400% 182-Day Treasury Bills Maturing January 7, 1982 15.01% 15.21% 15.15% Price 92.927a 92.882 92.897 Discount Rate Investment Rate' 13.991% 14.080% 14.050% 15.26% 15.37% 15.33% ‘Equivalent coupon-issue yield. E xcepting one tender o f $830,000. (38 percent of the amount of 91 -day bills bid for at the low price was accepted.) (98 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 October 8, 1981 Received By F.R. District (and U.S. Treasury) 182-Day Treasury Bills Maturing January 7, 1982 Received Accepted $ Accepted 64,115,000 5,381,010,000 21,055,000 32,700,000 62,495,000 47,855,000 445,540,000 25,160,000 16,700,000 56,630,000 25,105,000 607,530,000 $ 54,915,000 3,127,455,000 21,055,000 32,375,000 47,455,000 45,355,000 155,120,000 19,160,000 12,700,000 49,095,000 25,085,000 191,030,000 37,490,000 5,559,930,000 30,185,000 40,060,000 41,660,000 49,535,000 708,515,000 28,400,000 16,920,000 56,680,000 18,700,000 468,220,000 $ 36,290,000 2,925,780,000 30,185,000 40,060,000 39,530,000 49,535,000 406,575,000 23,400,000 16,920,000 56,680,000 18,700,000 133,220,000 U.S. T reasury.......................... 225,320,000 225,320,000 220,920,000 220,920,000 T o t a l s .................................... $7,281,615,000 $4,002,195,000 $7,006,815,000 $4,001,720,000 $5,312,700,000 889,615,000 $2,033,280,000 889,615,000 $4,549,530,000 846,485,000 $1,544,435,000 846,485,000 Federal R eserv e...................... Foreign Official Institutions .. $6,202,315,000 863,200,000 216,100,000 $2,922,895,000 863,200,000 216,100,000 $5,396,015,000 800,000,000 810,800,000 $2,390,920,000 800,000,000 810,800,000 T o t a l s ................................... $7,281,615,000 $4,002,195,000 $7,006,815,000 $4,001,720,000 B oston...................................... New Y o r k ................................ Philadelphia............................ C leveland ................................ R ichm ond................................ A tla n ta .................................... C hicago.................................... St. L o u is .................................. M inneapolis............................ Kansas C ity.............................. Dallas ...................................... San Francisco.......................... $ By class o f bidder Public C om petitive.................... Noncom petitive.............. S u b t o t a l s ...........................
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