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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9229 January 13, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $4,900,000,000 of 91-Day Bills, To Be Issued January 21, 1982, Due April 22, 1982 $4,900,000,000 of 182-Day Bills, To Be Issued January 21, 1982, Due July 22, 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 $9,800 million, to be issued January 21, 1982. This offering will provide $1,225 million of new cash for the Treasury, as the regular 13-week and 26-week bill maturities were issued in the amount of $8,580 million. The $3,000 million of additional issue 45-day cash management bills issued December 7, 1981, and maturing January 21, 1982, will be redeemed at maturity. The $8,580 million of regular maturities includes $1,354 million cur rently held by Federal Reserve Banks as agents for foreign and interna tional monetary authorities and $1,676 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 $4,900 million, representing an additional amount of bills dated April 23, 1981, and to mature April 22, 1982 (CUSIP No. 912793 7G5), currently outstanding in the amount of $10,795 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $4,900 million, to be dated January 21, 1982, and to mature July 22, 1982 (CUSIP No. 912794 BE3). Both series of bills will be issued for cash and in exchange for Treasury bills maturing January 21, 1982. 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 Standard time, Monday, January 18, 1982. 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 January 21, 1982, in cash or other immediately available funds or in Treasury bills maturing January 21, 1982. 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 Section 454(b) of the Internal Revenue Code, the amount of discount at which these bills are sold is considered to accrue when the bills are sold, redeemed, or otherwise disposed of. Section 1232(a)(4) provides that any gain on the sale or redemption of these bills that does not exceed the ratable share of the acquisition discount must be included in the Federal income tax return of the owner as ordinary income. The acquisition discount is the excess of the stated redemption price over the taxpayer’s basis (cost) for the bill. The ratable share of this discount is determined by multiplying such discount by a fraction, the numerator of which is the number of days the taxpayer held the bill and the denominator of which is the number of days from the day following the taxpayer’s date of purchase to the maturity of the bill. If the gain on the sale of a bill exceeds the taxpayer’s ratable portion of the acquisition discount, the excess gain is treated as short-term capital gain. 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 Standard time, Monday, January 18, 1982, 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 nthony M. Solom on , President. rnvFR^ RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JA N U A RY 14, 1982) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 15, 1982 H ig h ........................... ............... Low ........................... ............... A verage..................... ............... Price Discount Rate Investment Rate' 96.961 96.927 96.936 12.022% 12.157% 12.121% 12.57% 12.72% 12.68% 182-Day Treasury Bills Maturing July 15, 1982 Discount Rate Price 93.543a 93.514 93.526 12.772% 12.829% 12.806%2 Investment Rate' 13.84% 13.91% 13.88% 'Equivalent coupon-issue yield. 2The four-week average for calculating the maximum interest rate payable on money market certificates is 12.343%. Excepting one tender of $800,000. (65 percent of the amount of 91-day bills bid for at the low price was accepted.) (48 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 April 15, 1982 By F.R. District (and U.S. Treasury) Received 182-Day Treasury Bills Maturing July 15, 1982 Received Accepted Boston.................................... New Y o rk ............................... Philadelphia........................... Cleveland............................... Richmond............................... A tla n ta ................................... Chicago................................... St. L ouis................................. Minneapolis........................... Kansas City............................. Dallas ..................................... San Francisco......................... $ 77,430,000 9,455,640,000 46,840,000 59,260,000 84,360,000 74,740,000 743,695,000 49,110,000 10,390,000 60,520,000 28,840,000 541,825,000 $ 63,415,000 3,821,555,000 46,340,000 51,260,000 58,360,000 72,125,000 241,470,000 34,310,000 10,390,000 58,575,000 28,840,000 143,825,000 U.S. Treasury......................... 269,845,000 269,845,000 T O T A L S ......................... $11,502,495,000 $9,188,980,000 1,155,180,000 $10,344,160,000 993,235,000 165,100,000 $11,502,495,000 Accepted 97,705,000 8,496,185,000 24,735,000 94,750,000 109,225,000 58,430,000 673,100,000 50,925,000 12,150,000 59,030,000 28,035,000 869,655,000 $ 51,705,000 3,827,790,000 24,735,000 54,750,000 61,625,000 49,455,000 81,700,000 30,275,000 12,120,000 55,055,000 18,035,000 350,455,000 $4,900,310,000 283,080,000 $10,857,005,000 283,080,000 $4,900,780,000 $2,586,795,000 1,155,180,000 $ 8,003,975,000 909,530,000 $2,047,750,000 909,530,000 $3,741,975,000 993,235,000 165,100,000 $4,900,310,000 $ 8,913,505,000 950,000,000 993,500,000 $2,957,280,000 950,000,000 993,500,000 $10,857,005,000 $4,900,780,000 $ By class o f bidder Public Com petitive................... Noncompetitive............. S u b t o t a l s ................... Federal R eserve..................... Foreign Official Institutions.. T o t a l s .........................................
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