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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9106 July 15, 1981 O FFE R IN G OF TW O SERIES OF T R E A SU R Y BILLS $ 4 , 0 0 0 , 0 0 0 , 0 0 0 o f 9 1 - D a y B i lls , T o B e I s s u e d J u ly 2 3 , 1 9 8 1 , D u e O c t o b e r 2 2 , 1 9 8 1 $ 4 , 0 0 0 , 0 0 0 , 0 0 0 o f 1 8 2 - D a y B i lls , T o B e I s s u e d J u ly 2 3 , 1 9 8 1 , D u e J a n u a r y 2 1 , 1 9 8 2 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 T reasury D epartm ent: 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 July 23, 1981. This offering will result in a paydown for the Treasury of about $375 million, as the maturing bills are outstanding in the amount of $8,368 million, including $1,840 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $1,277 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 $4,000 million, representing an additional amount of bills dated April 23, 1981, and to mature October 22, 1981 (CUS1P No. 912793 7X8), currently outstanding in the amount of $4,048 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,000 million, to be dated July 23, 1981, and to mature January 21, 1982 (CUS1P No. 912794 AC8). Both series of bills will be issued for cash and in exchange for Treasury bills maturing July 23, 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 non competitive 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, July 20, 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 sub mit 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 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 of the bills applied for must accom pany 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 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 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. 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 of Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on July 23, 1981, in cash or other immediately-available funds or in Treasury bills maturing July 23, 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 otherwise 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 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 of the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, and this notice, prescribe the terms of these Treasury bills and govern the conditions of their issue. Copies of the circulars and tender forms may be obtained from any Federal Reserve 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, July 20, 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 . . . . . . . Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. on or before the issue date. A N T H O N Y M . SO L O M O N , President. (OV ER ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JULY 16, 1981) R a n g e o f A c c e p te d C o m p e titiv e B id s 91-Day Treasury Bills Maturing October 15, 1981 H ig h .............................................. Low .......... .................................... A v erag e.................... .................... Price Discount Rate Investment Rate' 96.339a 96.304 96.320 14.48397o 14.622% 14.558% 15.24% 15.39% 15.32% 182-Day Treasury Bills Maturing January 14, 1982 Discount Rate Investment Rate1 14.200% 14.256% 14.230% 15.51% 15.58% 15.55% Price 92.821b 92.793 92.806 'Equivalent coupon-issue yield. Excepting one tender of $730,000. bExcepting one tender of $40,000. (59 percent of the amount of 182-day bills bid for at the low price was accepted.) (39 percent of the amount of 91-day bills bid for at the low price was accepted.) T o ta l T en d ers R ec eiv e d an d A c c e p te d 91-Day Treasury Bills Maturing October 15, 1981 By F.R. District (and U.S. Treasury) Received Accepted 182-Day Treasury Bills Maturing January 14, 1982 Received Accepted B oston...................................... New Y o r k ................................ Philadelphia............................ C leveland................................ Richm ond................................ A tla n ta .................................... C hicago.................... ................ St. L o u is .................................. M inneapolis............................ Kansas C ity .............................. Dallas ...................................... San Francisco.......................... $ 58,615,000 5,984,770,000 36,340,000 52,345,000 50,480,000 62,225,000 646,255,000 29,425,000 14,595,000 49,500,000 22,160,000 516,600,000 $ 54,315,000 3,019,150,000 36,340,000 48,345,000 50,480,000 62,225,000 226,255,000 25,815,000 14,595,000 49,500,000 22,160,000 156,600,000 $ 92,920,000 6,690,030,000 25,615,000 40,960,000 50,500,000 78,115,000 562,375,000 39,895,000 17,110,000 57,660,000 26,695,000 650,720,000 $ 64,320,000 3,124,740,000 25,615,000 38,960,000 50,500,000 68,115,000 101,375,000 36,895,000 15,110,000 57,660,000 26,695,000 145,310,000 U.S. T reasury.......................... 234,590,000 234,590,000 244,975,000 244,975,000 T O T A L S ......................................... $7,757,900,000 $4,000,370,000 $8,577,570,000 $4,000,270,000 Public C om petitive.................... N oncom petitive.............. $5,662,920,000 960,245,000 $1,905,390,000 960,245,000 $5,894,270,000 957,400,000 $1,316,970,000 957,400,000 S u b t o t a l s .................... Federal R eserv e...................... Foreign Official Institutions .. $6,623,165,000 867,235,000 267,500,000 $2,865,635,000 867,235,000 267,500,000 $6,851,670,000 800,000,000 925,900,000 $2,274,370,000 800,000,000 925,900,000 T o t a l s ......................................... $7,757,900,000 $4,000,370,000 $8,577,570,000 $4,000,270,000 By class o f bidder