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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9126 August 12, 1981 OFFERING OF TWO SERIES OF TREASURY BILLS $4,500,000,000 of 91-Day Bills, To Be Issued August 20, 1981, Due November 19, 1981 $4,500,000,000 of 182-Day Bills, To Be Issued August 20, 1981, Due February 18, 1982 To A ll 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 two series of Treasury bills totaling approximately 59,000 million, to be issued August 20, 1981. This offering will provide 5600 million of new cash for the Treasury as the maturing bills are outstanding in the amount of 58,401 million, including 51,348 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and 51,876 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 54,500 million, representing an additional amount of bills dated May 21, 1981, and to mature November 19, 1981 (CUS1P No. 912793 8A7), currently outstanding in the amount of 54,082 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately 54,500 million, to be dated August 20, 1981, and to mature February 18, 1982 (CUSIP No. 912794 AF1). Both series of bills will be issued for cash and in exchange for Treasury bills maturing August 20, 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 510,000 and in any higher 55,000 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, August 17, 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 510,000. Tenders over 510,000 must be in multiples of 55,000. 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 5200 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 5200 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 5500,000 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 August 20, 1981, in cash or other immediately-available funds or in Treasury bills, maturing August 20, 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, August 17, 1981, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for both series are en closed. 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. ANTHONY M. SO L O M O N , President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED AUGUST 13, 1981) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing November 12, 1981 High . .. Low . . . Average 182-Day Treasury Bills Maturing February 11, 1982 Price Discount Rate Investment Rate' Price Discount Rate Investment Rate' 96.163a 96.141 96.149 15.179% 15.266% 15.235% 16.00% 16.10% 16.06% 92.367 92.347 92.355 15.098% 15.138% 15.122% 16.57% 16.62% 16.60% 'Equivalent coupon-issue yield. Excepting one tender of $10,000. (58 percent of the amount of 182-day bills bid for at the low price was accepted.) (27 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 November 12, 1981 Bv F.R. District (and U.S. Treasury) Received Accepted 182-Day Treasury Bills Maturing February 11, 1982 Received Accepted Boston..................................... New Y o rk ............................... Philadelphia........................... Cleveland ............................... Richmond............................... A tla n ta ................................... Chicago................................... St. L o u is................................. M inneapolis........................... Kansas City............................. Dallas ..................................... San Francisco......................... $ 59,160,000 6,786,485,000 66,120,000 47,450,000 67,07^,000 80,230,000 739,480,000 33,680,000 17,290,000 41,960,000 25,600,000 502,185,000 $ 59,160,000 3,302,985,000 51,120,000 43,450,000 57,075,000 69,730,000 274,480,000 30,680,000 15,830,000 41,935,000 20,600,000 136,535,000 $ 64,260,000 7,327,610,000 38,330,000 68,685,000 69,315,000 89,935,000 668,635,000 36,530,000 21,165,000 58,760,000 23,220,000 524,170,000 $ 59,260,000 3,577,825,000 31,830,000 38,020,000 47,815,000 53,070,000 108,635,000 24,530,000 14,165,000 48,385,000 18,130,000 109,170,000 U.S. Treasury......................... 197,575,000 197,575,000 170,435,000 170,435,000 ......................................... $8,664,290,000 $4,301,155,000 $9,161,050,000 $4,301,270,000 Public Com petitive................... Noncompetitive.............. $6,447,160,000 935,405,000 $2,084,025,000 935,405,000 $6,764,975,000 910,175,000 $1,905,195,000 910,175,000 $7,382,565,000 1,015,825,000 265,900,000 $3,019,430,000 1,015,825,000 265,900,000 $7,675,150,000 950,000,000 535,900,000 $2,815,370,000 950,000,000 535,900,000 $8,664,290,000 $4,301,155,000 $9,161,050,000 $4,301,270,000 T o t a ls By class o f bidder S u bto tals ................................ Federal R eserve..................... Foreign Official Institutions.. T o t a ls .........................................