Full text of Federal Reserve Bank of New York Circulars : 9277. Offering of Two Series of Treasury Bills

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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
Circular No. 9277
April 14, 1982

OFFERING OF TWO SERIES OF TREASURY BILLS
$4,700,000,000 of 91-Day Bills, To Be Issued April 22, 1982, Due July 22, 1982
$4,700,000,000 of 182-Day Bills, To Be Issued April 22, 1982, Due October 21, 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 $9,400 million, to
be issued April 22, 1982. This offering will result in a paydown for the
Treasury of about $75 million, as the regular 13-week and 26-week bill
maturities were issued in the amount of $9,473 million. The two series
offered are as follows:
91-day bills (to maturity date) for approximately $4,700 million,
representing an additional amount of bills dated January 21,
1982, and to mature July 22, 1982 (CUSIP No. 912794 BE3),
currently outstanding in the amount of $4,943 million, the
additional and original bills to be freely interchangeable.
182-day bills for approximately $4,700 million, to be dated April
22, 1982, and to mature October 21, 1982 (CUSIP No. 912794
BQ6).
Both series of bills will be issued for cash and in exchange for Treasury
bills maturing April 22, 1982. In addition to the maturing 13-week and
26-week bills, there are $4,261 million of maturing 52-week bills and
$10,017 million of maturing cash management bills. The disposition of
these latter amounts was announced last week. Federal Reserve Banks, as
agents for foreign and international monetary authorities, currently hold
$2,284 million, and Federal Reserve Banks for their own account hold
$2,502 million of the maturing bills. These amounts represent the combined
holdings of such accounts for the three regular issues of maturing bills.
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. For purposes of determining such
additional amounts, foreign and international monetary authorities are
considered to hold $1,456 million of the original 13-week and 26-week
issues.
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, April 19, 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 three decimals,
e.g., 97.920. 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. A deposit of 2 percent of the par
amount of the bills applied for must accompany tenders for such bills
from others, unless an express guaranty of payment by an incorporated
bank or trust company accompanies the tenders.
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 April 22, 1982, in
cash or other immediately available funds or in Treasury bills maturing
April 22, 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, April 19, 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.

ANTHONY M. SOLOMON, P residen t.
(OVER)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS
(TWO SERIES TO BE ISSUED APRIL 15, 1982)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing July 15, 1982

H ig h ........................... ...............
Low ........................... ...............
A verage..................... ...............

182-Day Treasury Bills
Maturing October 14, 1982

Price

Discount
Rate

Investment
Rate'

Price

96.756
96.750
96.752

12.833%
12.857%
12.849%

13.45%
13.47%
13.47%

93.508
93.464
93.479

Discount
Rate

Investment
Rate'

12.841%
12.928%
12.899%2

13.92%
14.02%
13.99%

'Equivalent coupon-issue yield.
2The four-week average for calculating the maximum interest rate payable on money market certificates is 12.904°7o.

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

(15 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 July 15, 1982
By F.R. District (and U.S. Treasury)

Received

Accepted

182-Day Treasury Bills
Maturing October 14, 1982
Received

Accepted

59,030,000
13,347,440,000
89,995,000
58,350,000
44,695,000
62,315,000
1,091,330,000
42,785,000
21,905,000
54,690,000
28,490,000
716,385,000

$ 44,345,000
3,944,665,000
39,995,000
40,765,000
40,045,000
58,030,000
68,150,000
29,255,000
9,405,000
50,810,000
23,490,000
64,845,000

$ 84,260,000
10,482,525,000
76,180,000
105,960,000
51,640,000
54,915,000
812,045,000
30,015,000
27,030,000
47,735,000
20,100,000
928,905,000

$ 65,260,000
3,340,475,000
76,180,000
84,960,000
47,640,000
52,415,000
199,045,000
24,015,000
27,030,000
43,945,000
20,100,000
388,405,000

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

299,130,000

332,615,000

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

$15,916,540,000

$4,712,930,000

$13,053,925,000

$4,702,085,000

Boston.....................................
New Y o rk ...............................
Philadelphia...........................
Cleveland ...............................
Richmond...............................
A tla n ta ...................................
Chicago...................................
St. L o u is.................................
M inneapolis...........................
Kansas C ity.............................
Dallas .....................................
San Francisco.........................

By class o f bidder

Public
Com petitive................... $13,635,600,000
1,085,205,000
Noncompetitive..............
$14,720,805,000
S ubtotals .........................
1,026,535,000
Federal R eserve.....................
169,200,000
Foreign Official Institutions ..

$2,431,990,000
1,085,205,000

$10,863,445,000
975,380,000

$2,511,605,000
975,380,000

$3,517,195,000
1,026,535,000
169,200,000

$11,838,825,000
1,000,000,000
215,100,000