Full text of Federal Reserve Bank of New York Circulars : 9149. Treasury to Auction 20-Year 1-Month Bonds and 7-Year Notes Totaling $4,750 Million

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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
Circular No. 9149
September 23, 1981

TREASURY TO AUCTION 20-YEAR 1-MONTH BONDS AND 7-YEAR NOTES
TOTALING $4,750 MILLION

To All Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

The following statement was issued yesterday by the Treasury Department:
The Department of the Treasury will auction $1,750 million of 20-year 1-month bonds and $3,000 million of
7-year notes to raise new cash. Additional amounts of the bonds and notes may be issued to Federal Reserve
Banks as agents for foreign and international monetary authorities at the average prices of accepted competitive
tenders.
The Treasury will postpone one or both of these auctions unless it has assurance of Congressional action on
legislation to raise the temporary debt ceiling before the scheduled auction dates of September 30 and October 7.

Printed on the reverse side is a table summarizing the highlights of the offerings. Copies of the official
offering circulars will be furnished upon request directed to our Government Bond Division (Tel. No.
212-791-6619). In addition, enclosed are copies of the forms to be used in submitting tenders.
This Bank will receive tenders at the Securities Department of its Head Office and at its Buffalo Branch
up to 1:30 p.m., Eastern Daylight Saving time, on the dates specified on the reverse side of this circular as
the deadlines for receipt of tenders. A ll competitive tenders, whether transmitted by mail or by other means,
must reach this Bank or its Branch by that time on the specified dates. However, for investors who wish to
submit noncompetitive tenders and who find it more convenient to mail their tenders than to present them
in person, the official offering circular for each offering provides that noncompetitive tenders will be con
sidered timely received if they are mailed to this Bank or its Branch under a postmark no later than the date
preceding the date specified for receipt of tenders.
Bidders submitting noncompetitive tenders should realize that it is possible that the average price may
be above par, in which case they would have to pay more than the face value for the securities.
Payment with a tender may be in the form of a personal check, which need not be certified, an official
bank check, or a Federal funds check (a check drawn by a depository institution on its Federal Reserve
account). All checks must be drawn payable to the Federal Reserve Bank of New York; checks endorsed to
this Bank will not be accepted. Payment may also be made in cash or in Treasury securities maturing on or
before the issue date of the securities being purchased.
Recorded messages provide information about Treasury offerings and about auction results: at the
Head Office — Tel. No. 212-791-7773 (offerings) and Tel. No. 212-791-5823 (results); at the Buffalo
Branch — Tel. No. 716-849-5046. Additional inquiries regarding these offerings may be made by calling, at
the Head Office, Tel. No. 212-791-6619, or, at the Buffalo Branch, Tel. No. 716-849-5016.

A n t h o n y M. So l o m o n ,

President.
(Over)

HIGHLIGHTS OF TREASURY
OFFERINGS TO THE PUBLIC
OF 20-YEAR 1-MONTH BONDS AND 7-YEAR NOTES

20-Year 1-Month Bonds

7-Year Notes

Amount Offered:

. $1,750 million

$3,000 million

Term and type of security................

. 20-year 1-month bonds

7-year notes

Series and CUSIP designation........

. Bonds of 2001
(CUSIP No. 912810 CX4)

Series F-1988
(CUSIP No. 912827 MK5)

Issue d a te .........................................

. October 7, 1981

October 14, 1981

Maturity date...................................

. November 15, 2001

October 15, 1988

Call date...........................................

. No provision

No provision

Interest coupon r a te .......................

. To be determined, based on the
average of accepted bids

To be determined, based on the
average of accepted bids

To the public...................................
Description of Security:

Investment y ie ld .............................

To be determined at auction

Premium or discount.....................

To be determined after auction

Interest payment d ates...................

May 15 and November 15
(first payment on May 15, 1982)

April 15 and October 15
(first payment on April 15, 1982)

Minimum denomination available .

$1,000

$ 1,000

Method of sale...................................

Yield auction

Accrued interest payable by investor.

None

Preferred allotment...........................

Noncompetitive bid for
$1,000,000 or less

Full payment to be
submitted with tender

Acceptable

Terms of Sale:

Payment by noninstitutional investors..........

Deposit guarantee by designated
institutions...................................
Key Dates:

Deadline for receipt of tenders................... Wednesday, September 30, 1981,
by 1:30 p.m., EDST

Settlement date (final payment due
from institutions)
a) cash or Federal funds......................... Wednesday, October 7, 1981
b) readily collectible check..................... Monday, October 5, 1981
Delivery date for coupon securities............Wednesday, October 21,1981

Wednesday, October 7, 1981,
by 1:30 p.m., EDST

Wednesday, October 14, 1981
Friday, October 9, 1981
Wednesday, October 28, 1981

Form BY-ln (Rev. 9/81)

IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Wednesday, September 30, 1981

PRIVACY ACT STATEMENT— The individually identifiable information required on this form is necessary to permit the subscription to be processed and the securities to be issued. If registered securities
are requested, the regulations governing United States securities (Department Circular No. 300) and the offering circular require submission of social security numbers; the numbers and other information are used
in inscribing the securities and establishing and servicing the ownership and interest records. The transaction will not be completed unless all required data is furnished.

TENDER FOR 20-YEAR 1-MONTH TREASURY BONDS OF 2001
Dated at

FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
New York, N.Y. 10045

The undersigned hereby offers to purchase the above-described securities in the amount indicated below, and
agrees to make payment therefor at your Bank in accordance with the provisions of the official offering circular.
Do not fill in both Competitive and
Noncompetitive tenders on one form

COMPETITIVE TENDER

NONCOMPETITIVE TENDER

$ .................... ......................................(maturity value)
or any lesser amount that may be awarded.

$ .......................................................... (maturity value)

Yield:..................

at the average price of accepted competitive bids.

(Not to exceed $1,000,000 fo r one bidder through all sources)

(Yield must be expressed with not more than two
decimal places, fo r example, 10.06)

Subject to allotment, please issue, deliver, and accept payment for the bearer securities indicated below
and/or the registered securities indicated on the reverse side (if only registered securities are desired, please only
complete schedule on the reverse side):
SCHEDULE FOR ISSUE OF BEARER SECURITIES
Pieces

Denomination
$

1,000

5,000

10,000

100,000

Maturity value

□ Deliver over the counter to the
undersigned (1)
□ Ship to the undersigned (2)
□ Hold in safekeeping (for member
bank only) in —
□ Investment Account (4)
□ General Account (5)
□ Trust Account (6)
□ Hold as collateral for Treasury Tax and
Loan Account* (7)

Payment will be made as follows:
] By charge to our reserve account (D)
By cash or check in immediately
available funds (F)
By surrender of maturing securities (E)
By charge to my correspondent
bank................................................ (D)
(Name of bank)

□ Special instructions (3)

$ 1,000,000
□ Wire to ..................................................................................................(8)
(Exact Receiving Bank Wire Address/Account)

Totals

* The undersigned certifies that the allotted securities will be owned solely oy ine undersigned.
(If a commercial bank or dealer is subscribing for its own account or for account of customers, the following
certifications are made a part of this tender.)

WE HEREBY CERTIFY that we have received tenders from customers in the amounts set forth opposite their
names on the list which is made a part of this tender and that we have received and are holding for the Treasury, or
that we guarantee payment to the Treasury, of the payments required by the official offering circular.
WE FURTHER CERTIFY that tenders received by us, if any, from other commercial banks or primary dealers for
their own account, and for the account of their customers, have been entered with us under the same conditions,
agreements, and certifications set forth in this form.
N A M E OF S U B S C R I B E R ( P L E A S E P R I N T OR TY P E )

Insert this tender in
special envelope marked
“Tender for Treasury
Notes or Bonds”

ADDRES S

CITY

PHONE (I N C L U D E AREA CODE)

S TA T E

ZIP

S IG NA TU R E OF S U B S C R IB E R OR A U T H O R IZ E D SIGNA TUR E

T I T L E OF A U T H O R IZ E D SIGNER

(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider.)

(Name o f customer)

INSTRUCTIONS:
1. No tender for less than $1,000 will be considered; and each tender must be for a multiple of $1,000 (maturity value).
2. Only banking institutions, and dealers who make primary markets in Government securities and report daily to this Bank their positions
with respect to Government securities and borrowings thereon, may submit tenders for customer account; in doing so, they may consolidate
competitive tenders at the same yield and may consolidate noncompetitive tenders, provided a list is attached showing the name of each bidder
and the amount bid for his account. Others will not be permitted to submit tenders except for their own account.
3. Tenders will be received without deposit from commercial and other banks for their own account, federally insured savings and loan
associations, States, political subdivisions or instrumentalities thereof, public pension and retirement and other public funds, international
organizations in which the United States holds membership, foreign central banks and foreign states, dealers who make primary markets in
Government securities and report daily to the Federal Reserve Bank of New York their positions with respect to Government securities and
borrowings thereon, and Government accounts. Tenders from others must be accompanied by full payment of the face amount of the
securities applied for.
4. Payment with a tender may be in the form of a personal check, which need not be certified, an official bank check, or a Federal funds
check (a check drawn by a commercial bank on its Federal Reserve account). All checks must be drawn payable to the Federal Reserve Bank of
New York; checks endorsed to this Bank will not be accepted. Payment may also be made in cash or Treasury securities maturing on or before
the issue date of the securities being purchased.
5. For information on currently available Treasury offerings, call our 24-hour recorded message at (212) 791-7773 at the Head Office or
(716) 849-5046 at the Buffalo Branch. For results of recent Treasury auctions, call (212) 791-5823 at the Head Office or (716) 849-5046 at the
Buffalo Branch. For other information about Treasury securities, call (212) 791-6619 at the Head Office or (716) 849-5016 at the Buffalo
Branch during normal business hours.
6. If the language of this tender is changed in any respect that, in the opinion of the Secretary of the Treasury, is material, the tender may be
disregarded.

(OVER)

SUBSCRIPTION NO

SCHEDULE FOR ISSUE OF REGISTERED TREASURY SECURITIES
DELIVERY INSTRUCTIONS

PAYMENT INSTRUCTIONS

S U B S C R I B E R ’ S N A M E _______________________________________________________

□

A D D R E S S _____________________________________________________________________

□ SHIP TO SUBSCRIBER

□

C ITY

□

DELIVER OVER THE COUNTER

FOR

BY CHARGE TO OUR
RESERVE ACCOUNT
BY CASH OR CHECK IN

OTHER INSTRUCTIONS:

S I G N A T U R E ___________________________________________________________________

R E G IS T R A T IO N

NO. OF
P IE C E S

IN S T R U C T IO N S

N A M E (S )

ID O R S .S .

NO.

ADDRESS

C IT Y

STATE

ISSUE A G E N T

1 ,000

5 ,0 0 0

1 0,000

1 00,000

1 ,0 0 0 ,0 0 0

TO TAL

AMOUNT

(L E A V E

BLANK)

FOR

FRB

USE O N LY

T R . C A S E NO.
30

1,0 0 0

5 ,0 0 0

10,000

100,000

1 ,0 0 0 ,0 0 0

TO TAL

O R S .S . N O .

ADDRESS

C IT Y

STATE

Z IP

N A M E (S )

ID O R

S .S . N O .

ADDRESS

C IT Y

STATE

Z IP

T R . C A S E N O.
30

1,000

5 ,0 0 0

1 0,0 00

100 ,00 0

1,0 0 0 ,0 0 0

TO TAL

ONLY

LO AN CODE

1 1 0 -0 1

SER IA L NOS.
DE NO M.

Z IP

N A M E (S )

BY SURRENDER OF
MATURING SECURITIES
□ 1 BY CHARGE TO MY
CORRESPONDENT BANK

USE

TRANS. A C C O U N TIN G D A TE

I M M E D IA T E L Y A V A I L A B L E FUNDS
_________________________________________ S T A T E ___________________ Z I P

FRB

T R . C A S E NO.

Form NY-ln (Rev. 9/81)

IMPORTANT — Closing time for receipt of this tender is 1:30 p.m., Wednesday, October 7, 1981

IVACY AC T STA T E M E N T
The individually identifiable information required on this form is necessary to permit the subscription to be processed and the securities to be issued. If registered securities
are requested, the regulations governing United States securities (Department Circular No. 300) and the offering circular require submission of social security numbers; the numbers and other information are used
in inscribing the securities and establishing and servicing the ownership and interest records. The transaction will not be completed unless all required data is furnished.

TENDER FOR 7-YEAR TREASURY NOTES OF SERIES F-1988
FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
New York, N.Y. 10045

Dated at

, 19 ..

COMPETITIVE TENDER

Do not fill in both Competitive and
Noncompetitive tenders on one form

NONCOMPETITIVE TENDER

$ ........................................................ (maturity value)
or any lesser amount that may be awarded.

S ........................................................ (maturity value)

Yield:..................

at the average price of accepted competitive bids.

(Not to exceed $1,000,000 fo r one bidder through all sources)

(Yield must be expressed with not more than two
decimal places, fo r example, 10.06)

Denomination

Maturity value

1,000

5,000
$

10,000

100,000

□ Deliver over the counter to the
undersigned (1)
Ship to the undersigned (2)
□ Hold in safekeeping (for member
bank only) in —
□ Investment Account (4)
□ General Account (5)
□ Trust Account (6)
[ ] Hold as collateral for Treasury Tax and
Loan Account*(7)

Payment will be made as follows:
By charge to our reserve account (D)
By cash or check in immediately
available funds (F)
' By surrender of maturing securities (E)
By charge to my correspondent
bank................................................(D)
(Name of bank)
□ Special instructions (3)

$ 1, 000,000

□ Wire to.

Totals

. ( 8)

(Exact Receiving Bank Wire Address/ Account)

* The undersigned certifies that the allotted securities will be owned solely by the undersigned.
(If a commercial bank or dealer is subscribing for its ow n account or for account of customers, the follow ing
certifications are made a part of this tender.)

Insert this tender in
special envelope marked
“Tender for Treasury
Notes or Bonds”

ADDRESS

CITY

PHONE (I N C L U D E AREA CODE)

ST AT E

ZIP

SIG NA TU R E OF S U B SC RI BE R OR A U T H O R IZ E D SIG NATURE

T I T L E OF A U T H O R IZ E D SIGNER

(Institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider.)

(Name of customer)

( O VL R )

S U B S C R IP T IO N NO

SCHEDULE FOR ISSUE OF REGISTERED TREASURY SECURITIES
DELIVERY INSTRUCTIONS

nDELIVER OVER THE COUNTER

S U B S C R IB E R ’S N A M E .
ADDRESS
C IT Y

□

________________

______________________

ship

TO SUBSCRIBER

□ OTHER INSTRUCTIONS:

Z IP

R E G IS T R A T IO N

NO. OF
PIECES

IN S T R U C T IO N S

N A M E (S )

I D O R S .S . N O .

ADDRESS

STATE

I D O R S. S. N O .

ADDRESS

„

STATE

I D O R S.S. N O .

ADDRESS

STATE

I ,000

5,000

10,000

100,000

1,000,000

TOTAL

Z IP

AMOUNT

SERIAL NOS.
(LEAVE BLANK)

□ BY SURRENDER OF
MATURING SECURITIES
[“ I BY CHARGE TO MY
CORRESPONDENT BANK

TRANS. ACCOUNTING DATE

IS S U E A G E N T 12 LOAN CODE
110-01

FOR F R B USE O N L Y

TR. CASE NO.
30

1,000

5,000

10,000

100,000

1,0 0 0 ,0 0 0

TOTAL

TR. CASE NO.

Z IP

N AM E(S)

C IT Y

ZIP

N A M E (S )

C IT Y

DENOM.

F O R F R B USE O N L Y

□ BY CHARGE TO OUR
RESERVE ACCOUNT
□ BY CASH OR CHECK IN
IM M E D IA T E L Y A V A I L A B L E FU N D S

.S T A T E .

S IG N A T U R E .

C IT Y

PAYMENT INSTRUCTIONS

1,000

5,000

10,000

100,000

1,000,000

TOTAL

TR. CASE NO.

Cm - ■91¥ 6f
PRELIMINARY CIRCULAR

UNITED STATES OF AMERICA
TREASURY BONDS OF 2001
DEPARTMENT CIRCULAR
Public Debt Series - No. 30-81
1.
1.

DEPARTMENT OF THE TREASURY,
OFFICE OF THE SECRETARY,
Washington, September 23, 1981

INVITATION FOR TENDERS

The Secretary of the Treasury, under the authority

of the Second Liberty Bond Act , as amended , invites tenders for
approximately $1,750,000,000 of United States securities, designated
Treasury Bonds of 2001 (CUSIP No. 912810 CX 4).

The securities will

be sold at auction, with bidding on the basis of yield.

Payment will

be required at the price equivalent of the bid yield of each accepted
tender.

The interest rate on the securities and the price equivalent

of each accepted bid will be determined in the manner described
below.

Additional amounts of these securities may be issued at the

average price to Federal Reserve Banks , as agents for foreign and
international monetary authorities.
2. DESCRIPTION OF SECURITIES
2.

The securities will be dated October 7, 1981, and will

bear interest from that date , payable on a semiannual basis on
May 15, 1982, and each subsequent 6 months on November 15 and
May 15 until the principal becomes payable.

They will mature

November 15 , 2001 , and will not be subject to call for redemption
prior to maturity.

In the event an interest payment date or the

maturity date is a Saturday, Sunday, or other nonbusiness day, the
interest or principal is payable on the next-succeeding business
day.
2.

The income derived from the securities is subject to

all taxes imposed under the Internal Revenue Code of 1954.

The

securities are subject to estate, inheritance, gift, or other excise
taxes , whether Federal or State , but are exempt from all taxation now
or hereafter imposed on the principal or interest thereof by any
State , any possession of the United States , or any local taxing
authority.

A■

The securities will be acceptable to-secure deposits

of public monies. They will not be acceptable in payment of taxes.
2. 4. Bearer securities with interest coupons attached, and
securities registered as to principal and interest , will be issued
in denominations of $1,000, $5,000, $10,000, $100,000, and
$1,000,000.

Book-entry securities will be available to eligible

bidders in multiples of those amounts.

Interchanges of securities

of different denominations and of coupon, registered, and book-entry
securities , and the transfer of registered securities will be
permitted.
2. 5.

The Department of the Treasury's general regulations

governing United States securities apply to the securities offered
in this circular.

These general regulations include those cur

rently in effect , as well as those that may be issued at a later
date.
3.
3.

SALE PROCEDURES

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, Wednesday,
September 30, 1981.

Noncompetitive tenders as defined below will be

considered timely if postmarked no later than Tuesday, September 29,
1981.
3.
bid for.

Each tender must state the face amount of securities

The minimum bid is $1,000, and larger bids must be in

multiples of that amount.

Competitive tenders must also show the

yield desired , expressed in terms of an annual yield with two
decimals, e.g. , 7.11%.

Common fractions may not be used. Non

competitive tenders must show the term "noncompetitive" on the
tender form in lieu of a specified yield.

No bidder may submit more

than one noncompetitive tender , and the amount may not exceed
$1 ,000 , 000 .
3.

Commercial banks, which for this purpose are defined as

banks accepting demand deposits , and primary dealers , which for this
purpose are defined as 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 submit

• <*»

• . “ ,.Jf '

(*.» J- » .»?.•■.

,.;: i

=.*.r llr ■fiC

« •' ^ 1

3 -

tenders for account of customers if the names of the customers and
the amount for each customer are furnished. Others are only per
mitted to submit tenders for their own account.
3.

Tenders will be received without deposit for their

own account from commercial banks and other banking institutions;
primary dealers, as defined above; Federally-insured savings and
loan associations; States, and their political subdivisions or
instrumentalities; public pension and retirement and other public
funds; international organizations in which the United States
holds membership; foreign central banks and foreign states; Federal
Reserve Banks; and Government accounts.

Tenders from others must

be accompanied by full payment for the amount of securities applied
for (in the form of cash, maturing Treasury securities, or readily
collectible checks) , or by a payment guarantee of 5 percent of the
face amount applied for , from a commercial bank or a primary
dealer.
3.

Immediately after the closing hour, tenders will be

opened , followed by a public announcement of the amount and yield
range of accepted bids.

Subject to the reservations expressed in

Section 4 , noncompetitive tenders will be accepted in full, and
then competitive tenders will be accepted, starting with those at
the lowest yields , through successively higher yields to the extent
required to attain the amount offered.

Tenders at the highest

accepted yield will be prorated if necessary.

After the

determination is made as to which tenders are accepted, a coupon
rate will be established, on the basis of a 1/8 of one percent
increment , which results in an equivalent average accepted price
close to 100.000 and a lowest accepted price above the original
issue discount limit of 95.000.

That rate of interest will be paid

on all of the securities. Based on such interest rate, the price
on each competitive tender allotted will be determined and each
successful competitive bidder will be required to pay the price
equivalent to the yield bid. Those submitting noncompetitive
tenders will pay the price equivalent to the weighted average
yield of accepted competitive tenders.

Price calculations will be

carried to three decimal places on the basis of price per hundred ,

4 -

e.g. , 99.923 , and the determinations of the Secretary of the
Treasury shall be final.

If the amount of noncompetitive tenders

received would absorb all or most of the offering , competitive
tenders will be accepted in an amount sufficient to provide a fair
determination of the yield.

Tenders received from Government

accounts and Federal Reserve Banks will be accepted at the price
equivalent to the weighted average yield of accepted competitive
tenders.
3. 6.

Competitive bidders will be advised of the acceptance

or rejection of their tenders.

Those submitting noncompetitive

tenders will only be notified if the tender is not accepted in
full, or when the price is over par.
4. RESERVATIONS
4.

The Secretary of the Treasury expressly reserves the

right to accept or reject any or all tenders in whole or in part ,
to allot more or less than the amount of securities specified in
Section 1, and to make different percentage allotments to various
classes of applicants when the Secretary considers it in the public
interest.

The Secretary's action under this Section is final.
5.

PAYMENT AND DELIVERY

Settlement for allotted securities must be made at the

Federal Reserve Bank or Branch or at the Bureau of the Public Debt ,
wherever the tender was submitted.

Settlement on securities

allotted to institutional investors and to others whose tenders are
accompanied by a payment guarantee as provided in Section 3.4. ,
must be made or completed on or before Wednesday, October 7, 1981.
Payment in full must accompany tenders submitted by all other
investors.

Payment must be in cash; in other funds immediately

available to the Treasury; in Treasury bills, notes, or bonds (with
all coupons detached) maturing on or before the settlement

v '

5 -

date but which are not overdue as defined in the general regula
tions governing United States securities; or by check drawn to the
order of the institution to which the tender was submitted , which
must be received from institutional investors no later than
Monday, October 5, 1981. When payment has been submitted with the
tender and the purchase price of allotted securities is over p a r ,
settlement for the premium must be completed timely, as specified
in the preceding sentence.

When payment has been submitted with

the tender and the purchase price is under par , the discount will
be remitted to the bidder.

Payment will not be considered complete

where registered securities are requested if the appropriate
identifying number as required on tax returns and other documents
submitted to the Internal Revenue Service (an individual's social
security number or an employer identification number) is not
furnished.

When payment is made in securities, a cash adjustment

will be made to or required of the bidder for any difference
between the face amount of securities presented and the amount
payable on the securities allotted.
5.

In every case where full payment has not been

completed on time , an amount of up to 5 percent of the face amount
of securities allotted , shall , at the discretion of the Secretary
of the Treasury, be forfeited to the United States.
5.

Registered securities tendered in payment for allotted

securities are not required to be assigned if the new securities
are to be registered in the same names and forms as appear in the
registrations or assignments of the securities surrendered. When
the new securities are to be registered in names and forms
different from those in the inscriptions or assignments of- the
securities presented, the assignment should be to "The Secretary of
the Treasury for (securities offered by this circular) in the name
of (name and taxpayer identifying number)."

If new securities in

coupon form are desired, the assignment should be to "The Secretary
of the Treasury for coupon (securities offered by this circular) to
be delivered to (name and address)."

Specific instructions for the

issuance and delivery of the new securities , signed by the owner or
authorized representative, must accompany the securities presented.
Securities tendered in payment should be surrendered to the Federal
Reserve Bank or Branch or to the Bureau of the Public Debt,
Washington, D. C. 20226.

The securities must be delivered at the

expense and risk of the holder.
5.

If bearer securities are not ready for delivery on the

settlement date , purchasers may elect to receive interim certifi
cates.

These certificates shall be issued in bearer form and shall

be exchangeable for definitive securities of this issue , when such
securities are available , at any Federal Reserve Bank or Branch or
at the Bureau of the Public Debt, Washington, D. C. 20226.

The

interim certificates must be returned at the risk and expense of
the holder.
5. 5.

Delivery of securities in registered form will be

made after the requested form of registration has been validated ,
the registered interest account has been established , and the
securities have been inscribed.
6.
6.

GENERAL PROVISIONS

As fiscal agents of the United States, Federal Reserve

Banks are authorized and requested to receive tenders , to make
allotments as directed by the Secretary of the Treasury, to issue
such notices as may be necessary, to receive payment for and make
delivery of securities on full-paid allotments , and to issue interim
certificates pending delivery of the definitive securities.
6.

The Secretary of the Treasury may at any time issue

supplemental or amendatory rules and regulations governing the
offering.

Public announcement of such changes will be promptly

prov ided.

Paul H. Taylor ,
Fiscal Assistant Secretary.

.UNITED STATES OF AMERICA
TREASURY NOTES OF OCTOBER 15, 1988
SERIES F-1988
DEPARTMENT CIRCULAR
Public Debt Series - No. 31-81
1.
1.

DEPARTMENT OF THE TREASURY,
OFFICE OF THE SECRETARY,
. Washington , September 23 , 1981

INVITATION FOR TENDERS

The Secretary of the Treasury, under the authority

of the Second Liberty Bond Act, as amended, invites tenders for
approximately $3,000,000,000 of United States securities, desig
nated Treasury Notes of October 15, 1988, Series F-1988 (CUSIP No.
912827 MK 5).

The securities will be sold at auction, with

bidding on the basis of yield.

Payment will be required at the

price equivalent of the bid yield of each accepted tender.

The

interest rate on the securities and the price equivalent of each
accepted bid will be determined in the manner described below.
Additional amounts of these securities may be issued at the
average price to Federal Reserve Banks, as agents for foreign and
international monetary authorities.
2.
2.

DESCRIPTION OF SECURITIES

The securities will be dated October 14, 1981, and

will bear interest from that date , payable on a semiannual basis
on April 15, 1982, and each subsequent 6 months on October 15 and
April 15 until the principal becomes payable.

They will mature

October 15 , 1988 , and will not be subject to call for redemption
prior to maturity.

In the event an interest payment date or the

maturity date is a Saturday, Sunday, or other nonbusiness day, the
interest or principal is payable on the next-succeeding business
day.
2.

The income.derived from the securities is subject to

all taxes imposed under the Internal Revenue Code of 1954.

The

securities are subject to estate ,--inheritance , gift, or other
excise taxes, whether Federal ,or State, but are exempt from all
taxation now or hereafter imposed on the principal or interest
thereof by any State , any possession of the United States , or any
local taxing authority.

2. 3. The securities will be acceptable to secure deposits
of public monies. They will not be acceptable in payment of
taxes.
2.

Bearer securities with interest coupons attached,

and securities registered as to principal and interest, will
be issued in denominations of $1,000, $5,000, $10,000, $100,000,
and $1,000,000.

Book-entry securities will be available to

eligible bidders in multiples of those amounts.

Interchanges of

securities of different denominations and of coupon , registered ,
and book-entry securities , and the transfer of registered
securities will be permitted.
2.

The Department of the Treasury's general regula

tions governing United States securities apply to the securities
offered in this circular.

These general regulations include

those currently in effect , as well as those that may be issued
at a later date.
3.
3.

SALE PROCEDURES

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,
Wednesday, October 7, 1981.

Noncompetitive tenders as defined

below will be considered timely if postmarked no later than
Tuesday, October 6, 1981.
3.
bid for.

Each tender must state the face amount of securities

The minimum bid is $1,000, and larger bids must be in

multiples of that amount.

Competitive tenders must also show the

yield desired , expressed in terms of an annual yield with two
decimals, e.g., 7.11%.

.Common fractions may not be used.

Non

competitive tenders must show the term "noncompetitive" on the
tender form in lieu of a specified yield. No bidder may submit
• \
more than one noncompetitive tender, and the amount may not exceed
\

$1 ,000 , 000 .
3.

Commercial banks, which for this purpose are defined

as banks accepting demand deposits , and primary dealers , which for
this purpose are defined as dealers who make primary markets in

3 -

Government securities and report daily to the Federal Reserve Bank
of New 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.
are only permitted to submit for their own account.
3.

Others

Tenders will be received without deposit for their

Tenders from

others must be accompanied by full payment for the amount of
securities applied for (in the form of cash, maturing Treasury
securities, or readily collectible checks), or by a payment
guarantee of 5 percent of the face amount applied for, from a
commercial bank or a primary dealer.
3.

Immediately after the closing hour, tenders will be

opened , followed by a public announcement of the amount and yield
range of accepted bids.

Subject to the reservations expressed in

Section 4 , noncompetitive tenders will be accepted in full , and
then competitive tenders will be accepted , starting with those at
the lowest yields , through successively higher yields to the
extent required to attain the amount offered.

Tenders at the

highest accepted yield will be prorated if necessary.

After the

That rate of interest will be
Based on such interest rate, the

price on each competitive tender allotted will be determined and
each successful competitite bidder will be required to pay the
price equivalent to the yield bid.

Those submitting noncompetitive

tenders will pay the price equivalent to the weighted average
yield of accepted competitive tenders.

Price calculations will be

carried to three decimal places on the basis of price per hundred ,
e.g., 99.923, and the determinations of the Secretary of the
Treasury shall be final.

If the amount of noncompetitive tenders

received would absorb all or most of the offering , competitive
tenders will be accepted in an amount sufficient to provide a fair
determination of the yield.

Tenders received from Government

accounts and Federal Reserve Banks will be accepted at the price
equivalent to the weighted average yield of accepted competitive
tenders.
3. 6.

Competitive bidders will be advised of the acceptance

or rejection of their tenders.

Those submitting noncompetitive

tenders will only be notified if the tender is not accepted in
full, or when the price is over par.
4.
4.

RESERVATIONS

The Secretary of the Treasury expressly reserves the

right to accept or reject any or all tenders in whole or in part,
to allot more or less than the amount of securities specified in
Section 1, and to make different percentage allotments to various
classes of applicants when the Secretary considers it in the public
interest.

The Secretary's action under this Section is final.
5.

PAYMENT AND DELIVERY

Settlement for allotted securities must be made at

the Federal Reserve Bank or Branch or at the Bureau of the Public
Debt, wherever the tender was submitted.

Settlement on securities

allotted to institutional investors and to others whose tenders are
accompanied by a payment guarantee as provided in Section 3.4.,
must be made or completed on or before Wednesday, October 14, 1981.
Payment in full must accompany tenders submitted by all other
investors.

Payment must be in cash; in other funds immediately

available to the Treasury; in'Treasury bills, notes, or bonds (with
all coupons detached) maturing on or before t*he settlement date but
which are not overdue as defined in the general regulations governing
United States securities; or by check drawn to the order of the

institution to which the tender was submitted, which must be received
from institutional investors no later than Friday, October 9, 1981.
When payment has been submitted with the tender and the purchase price
of allotted securities is over par , settlement for the premium must be
completed timely, as specified in the preceding sentence.

When payment

has been submitted with the tender and the purchase price is under par ,
the discount will be remitted to the bidder.

Payment will not be

considered complete where registered securities are requested if the
appropriate identifying number as required on tax returns and other
documents submitted to the Internal Revenue Service (an individual's
social security number or an employer identification number) is not
furnished.

When payment is made in securities, a cash adjustment will

be inade to or required of the bidder for any difference between the face
amount of securities presented and the amount payable on the securities
allotted.
5. 2.

In every case where full payment has not been completed on

tim e , an amount of up to 5 percent of the face amount of securities
allotted, shall, at the discretion of the Secretary of the Treasury) be
forfeited to the United States.
5.

Registered securities tendered in payment for allotted

securities are not required to be assigned if the new securities are
to be registered in the same names and forms as appear in the regis
trations or assignments of the securities surrendered.

When the new

securities are to be registered in names and forms different from
those in the inscriptions or assignments of the securities presented ,
the assignment should be to "The Secretary of the Treasury for
(securities offered by this circular) in the name of (name and taxpayer
identifying number)."

If new securities in coupon form are desired, the

assignment should be to "The Secretary of the Treasury for coupon
(securities offered by this circular) to be delivered to (name and
address)."

Specific instructions for the issuance and delivery of the

new securities, signed by the owner or authorized representative, must
accompany the securities presented.

Securities tendered in payment

should be surrendered to the Federal Reserve Bank or Branch or to the
Bureau of the Public Debt, Washington, D. C. 20226.

The securities must

be delivered at the expense and risk of the holder.

If bearer securities are not ready for delivery on

the settlement date , purchasers may elect to receive interim
certificates.

These certificates shall be issued in bearer form

and shall be exchangeable for definitive securities of this issue ,
when such securities are available , at any Federal Reserve Bank or
Branch or at the Bureau of the Public Debt, Washington, D. C.
20226.

The interim certificates must be returned at the risk and

expense of the holder•
5. 5. Delivery of securities in registered form will be
made after the requested form of registration has been validated ,
the registered interest account has been established , and the
securities have been inscribed.
6.
6.

GENERAL PROVISIONS

As fiscal agents of the United States, Federal

Reserve Banks are'authorized and requested to receive tenders, to
make allotments as directed by the Secretary of the Treasury, to
issue such notices as may be necessary, to receive payment for and
make delivery of securities on full-paid allotments, and to issue
interim certificates pending delivery of the definitive securities
6.

The Secretary of the Treasury may at any time issue

supplemental or amendatory rules and regulations governing the
offering.

Public announcement of such changes will be promptly

prov ided.

Full text of Federal Reserve Bank of New York Circulars : 9149. Treasury to Auction 20-Year 1-Month Bonds and 7-Year Notes Totaling $4,750 Million

FRASER