View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK O F NEW YOR K
Fiscal Agent of the United States
Circular No. 9129
August 19, 1981

OFFERING OF TWO SERIES OF TREASURY BILLS
$4,500,000,000 of 92-Day Bills, To Be Issued August 27, 1981, Due November 27, 1981
$4,500,000,000 of 182-Day Bills, To Be Issued August 27, 1981, Due February 25, 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 $9,000 million, to
be issued August 27, 1981. This offering will provide $600 million of new
cash for the Treasury, as the regular 13-week and 26-week bill maturities
were issued in the amount o f $8,389 million. The $3,000 million of addi­
tional issue 23-day cash management bills issued August 4, 1981, and
maturing August 27, 1981, will be redeemed at maturity.
The $8,389 million of regular maturities includes $1,739 million cur­
rently held by Federal Reserve Banks as agents for foreign and interna­
tional monetary authorities and $2,106 million currently held by Federal
Reserve Banks for their own account. The two series offered are as
follows:
92-day bills (to maturity date) for approximately $4,500 million,
representing an additional amount of bills dated May 28, 1981,
and to mature November 27, 1981 (CUSIP No. 912793 8B5),
currently outstanding in the amount of $4,045 million, the
additional and original bills to be freely interchangeable.
182-day bills (to maturity date) for approximately $4,500 million,
representing an additional amount of bills dated February 26,
1981, and to mature February 25, 1982 (CUSIP No. 912793
8G4), currently outstanding in the amount of $5,265 million,
the additional and original bills to be freely interchangeable.
Both series of bills will be issued for cash and in exchange for Treasury
bills maturing August 27, 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, August 24, 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 August 27, 1981, in
cash or other immediately-available funds or in Treasury bills maturing
August 27, 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 24,
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 dote.

Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular.
ANTHONY

M.

SOLOMON,

P resident.
Please note that the Treasury bills maturing November 27, 1981 will be 92-day bills.




(OVER)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED AUGUST 20, 1981)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing November 19, 1981

H ig h ............................ ................
Low ............................ ................
A v erag e...................... ................

Price

Discount
Rate

Investment
Rate'

96.069a
96.010
96.030

15.55197o
15.785 97o
15.70597o

16.41%
16.67%
16.58%

182-Day Treasury Bills
Maturing February 18, 1982
Discount
Rate

Investment
Rate'

15.545%
15.686%
15.644%

17.11%
17.27%
17.22%

Price

92.141b
92.070
92.091

'Equivalent coupon-issue yield.
Excepting four tenders totaling $4,000,000.
Excepting five tenders totaling $4,030,000.

(81 percent of the amount of 91 -day bills
bid for at the low price was accepted.)

(23 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 November 19, 1981
By F.R. District (and U.S. Treasury)

Received

Accepted

182-Day Treasury Bills
Maturing February 18, 1982
Received

Accepted

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 .................................

$ 47,425,000
6,901,440,000
43,655,000
82,710,000
61,215,000
62,920,000
709,215,000
38,735,000
19,090,000
43,425,000
25,570,000
483,020,000

$ 47,425,000
3,577,440,000
43,655,000
35,710,000
45,215,000
62,920,000
199,205,000
34,735,000
19,090,000
43,425,000
25,570,000
148,020,000

$ 86,995,000
6,657,475,000
23,215,000
143,000,000
69,715,000
47,310,000
739,815,000
26,505,000
23,120,000
43,740,000
22,675,000
589,760,000

$ 76,995,000
3,522,175,000
23,215,000
123,000,000
48,715,000
47,310,000
113,315,000
22,505,000
23,120,000
40,295,000
17,675,000
279,760,000

U.S. Treasury .................................

218,315,000

218,315,000

162,295,000

162,295,000

T o t a l s ....................................

$8,736,735,000

$4,500,725,000

$8,635,620,000

$4,500,375,000

$6,672,350,000
879,070,000

$2,436,340,000
879,070,000

$6,287,605,000
795,515,000

$2,152,360,000
795,515,000

Federal R eserve......................
Foreign Official Institutions ..

$7,551,420,000
1,037,915,000
147,400,000

$3,315,410,000
1,037,915,000
147,400,000

$7,083,120,000
1,000,000,000
552,500,000

$2,947,875,000
1,000,000,000
552,500,000

T o t a l s ....................................

$8,736,735,000

$4,500,725,000

$8,635,620,000

$4,500,375,000

By class o f bidder

Public
C om petitive....................
Noncom petitive..............
S u b t o t a l s ...........................