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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gen t o f the U nited States Circular No. 9308 June 9, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $5,000,000,000 of 91-Day Bills, To Be Issued June 17, 1982, Due September 16, 1982 $5,000,000,000 of 182-Day Bills, To Be Issued June 17, 1982, Due December 16, 1982 T o A ll I n c o r p o r a te d B a n k s a n d T ru st C o m p a n ie s , a n d O th e rs C o n c e r n e d , in th e S e c o n d F e d e ra l R e s e r v e D is tr ic t: Following is the text of a notice issued by the Treasury Department: T h e D e p a r t m e n t o f th e T r e a s u r y , b y th is p u b lic n otice , in v ite s te n d e rs fo r t w o series o f T r e a s u r y b ills t o t a lin g a p p r o x im a t e ly $ 1 0 ,0 0 0 m illio n , to be is su e d J u n e 17, 1982. T h is o f f e r in g w ill p r o v id e $ 5 5 0 m illio n o f n e w c a s h f o r the T r e a s u r y , as the r e g u la r 1 3 -w e e k a n d 2 6 - w e e k b ill m a tu ritie s w e re is su e d in the a m o u n t o f $ 9 ,4 5 6 m illio n . T h e t w o series o f fe re d are as fo llo w s : 9 1 - d a y b ills (to m a t u rit y d ate ) f o r a p p r o x im a t e ly $ 5 ,0 0 0 m illio n , re p re s e n tin g a n a d d it io n a l a m o u n t o f b ills d a te d M a r c h 18, 1982, a n d to m a tu re S e p t e m b e r 16, 19 8 2 ( C U S I P N o . 9 1 2 7 9 4 B L 7 ) , c u r re n t ly o u t s t a n d in g in the a m o u n t o f $ 4 ,8 4 2 m illio n , the a d d it io n a l a n d o r ig in a l b ills to be fre e ly in te rc h a n g e a b le . 1 8 2 -d a y b ills fo r a p p ro x im a te ly $ 5 ,0 0 0 m illio n , to be dated J u n e 17, 1982, a n d to m a tu re D e c e m b e r 16, 198 2 ( C U S I P N o . 912794 B W 3 ). B o t h se rie s o f b ills w ill be is su e d f o r c a s h a n d in e x c h a n g e fo r T r e a s u r y b ills m a t u r in g J u n e 17, 1982. I n a d d it io n to the m a t u r in g 1 3-w e ek a n d 2 6 -w e e k b ills, th e re are $4,0 1 1 m illio n o f m a t u r in g 5 2 -w e e k b ills a n d $ 9 ,0 0 3 m illio n o f m a t u r in g c a sh m a n a g e m e n t b ills. T h e d is p o s it io n o f these la tter a m o u n t s w a s a n n o u n c e d last w e ek. F e d e ra l R e s e rv e B a n k s , as a g e n ts f o r fo r e ig n a n d in te rn a t io n a l m o n e t a r y a u th o r it ie s , c u r re n t ly h o ld $ 1 ,4 1 6 m illio n , a n d F e d e ra l R e s e rv e B a n k s f o r t h e ir o w n a c c o u n t h o ld $ 3 ,6 9 6 m illio n o f the m a tu rin g bills. T h e se a m o u n t s represent the c o m b in e d h o ld in g s o f s u c h a c c o u n t s f o r the three r e g u la r is su e s o f m a t u r in g b ills. T e n d e r s f r o m F e d e ra l R e s e rv e B a n k s f o r th e m se lv e s a n d as a g e n ts fo r fo r e ig n a n d in t e rn a t io n a l m o n e t a ry a u th o r it ie s w ill be acc e p te d at the w e ig h te d a v e ra g e p ric e s o f accep ted c o m p e titiv e ten de rs. A d d i t i o n a l a m o u n t s o f the b ills m a y be is su e d to F e d e ra l R e s e r v e B a n k s , as a g e n ts fo r fo r e ig n a n d in t e rn a t io n a l m o n e t a ry a u th o ritie s , to the extent that the a g g re g a te a m o u n t o f te n d e rs f o r su c h a c c o u n t s excee d s the a g g re g a te a m o u n t o f m a t u r in g b ills h e ld b y the m . F o r p u r p o s e s o f d e t e r m in in g su c h a d d it io n a l a m o u n t s , fo re ig n a n d in te rn a t io n a l m o n e t a r y a u th o r it ie s are c o n s id e r e d to h o ld $ 1 ,3 3 1 m illio n o f the o r ig in a l 1 3 -w e ek a n d 2 6 -w e e k issu e s. T h e b ills w ill b e is su e d o n a d is c o u n t b a sis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g , a n d at m a t u rit y th e ir p a r a m o u n t w ill be p a y a b le w it h o u t interest. B o t h series o f b ills w ill b e is su e d e n tire ly in b o o k -e n t r y f o r m in a m in im u m a m o u n t o f $ 1 0 ,0 0 0 a n d in a n y h ig h e r $ 5 ,0 0 0 m u ltip le , o n the r e c o r d s eith e r o f the F e d e ra l R e s e rv e B a n k s a n d B r a n c h e s, o r o f the D e p a r t m e n t o f the T r e a s u r y . T e n d e r s w ill be rec e ive d at F e d e ra l R e s e rv e B a n k s a n d B r a n c h e s a n d at the B u r e a u o f the P u b l ic D e b t, W a s h in g t o n , D . C . 2 0 2 2 6 , u p to 1:30 p .m ., E a s t e r n D a y lig h t S a v in g tim e, M o n d a y , J u n e 14, 1982. F o r m P D 4 6 3 2 -2 ( f o r 2 6 -w e e k series) o r F o r m P D 4 6 3 2 -3 (fo r 13-w eek series) s h o u ld be u se d to s u b m it te n d e rs fo r b ills to be m a in t a in e d o n the b o o k - e n t r y r e c o r d s o f the D e p a r t m e n t o f the T r e a s u r y . E a c h te n d e r m u s t be fo r a m in im u m o f $ 1 0 ,0 0 0 . T e n d e r s o v e r $ 1 0 ,0 0 0 m u s t b e in m u ltip le s o f $ 5 ,0 0 0 . In the case o f c o m p e titiv e ten de rs, the p ric e o f fe re d m u s t b e e x p re sse d o n the b a sis o f 100, w ith three d e c im a ls, e.g., 9 7 .9 2 0 . F r a c t io n s m a y n o t be u sed. B a n k i n g in s t it u t io n s a n d d e ale rs w h o m a k e p r im a r y m a rk e t s in G o v e r n m e n t se c u ritie s a n d re p o rt d a ily to the F e d e ra l R e s e rv e B a n k o f N e w Y o r k th e ir p o s it io n s in a n d b o r r o w in g s o n s u c h se cu ritie s m a y s u b m it te n d e rs f o r a c c o u n t o f c u s to m e rs , i f the n a m e s o f the c u s to m e rs a n d the a m o u n t f o r e a c h c u s to m e r are fu r n is h e d . O t h e r s are o n ly p e rm itte d to s u b m it te n d e rs f o r th e ir o w n a c c o u n t. E a c h te n d e r m u s t state the a m o u n t o f a n y net lo n g p o s it io n in the b ills b e in g o ffe re d if s u c h p o s it io n is in e x ce ss o f $ 2 0 0 m illio n . T h is in f o r m a t io n s h o u ld reflect p o s it io n s h e ld as o f 1 2 :3 0 p .m ., E a s t e r n tim e, o n the d a y o f the a u c tio n . S u c h p o s it io n s w o u ld in c lu d e b ills a c q u ir e d t h r o u g h “ w h e n is s u e d ” t ra d in g , a n d fu tu re s a n d f o r w a r d t ra n s a c tio n s a s w e ll as h o ld in g s o f o u t s t a n d in g b ills w ith the sa m e m a t u r it y d a te a s the n e w o f fe rin g , e.g., b ills w ith three m o n t h s to m a t u r it y p r e v io u s ly o ffe re d a s s ix - m o n t h b ills. D e a le r s w h o m a k e p r im a r y m a rk e t s in G o v e r n m e n t se cu ritie s a n d re p o rt d a ily to the F e d e ra l R e se rv e B a n k o f N e w Y o r k t h e ir p o s it io n s in a n d b o r r o w in g s o n s u c h secu rities, w h e n s u b m it t in g te n d e rs f o r c u sto m e rs, m u s t s u b m it a se p a ra te ten de r fo r e a c h c u s to m e r w h o s e net lo n g p o s it io n in the b ills b e in g o ffe re d exceeds $ 2 0 0 m illio n . P a y m e n t fo r the fu ll p a r a m o u n t o f the b ills a p p lie d f o r m u s t a c c o m p a n y a ll te n d e rs su b m itt e d f o r b ills to be m a in t a in e d o n the b o o k - e n t r y r e c o r d s o f the D e p a r t m e n t o f the T r e a s u r y . A c a sh a d ju s t m e n t w ill be m a d e o n a ll a ccep ted te n d e rs fo r the d iffe re n c e b etw e en the p a r p a y m e n t su b m itt e d a n d the a c tu a l issu e p rice a s d e te rm in e d in the a u c tio n . N o d e p o sit n eed a c c o m p a n y ten de rs f r o m in c o r p o r a t e d b a n k s a n d tru st c o m p a n ie s a n d f r o m re s p o n s ib le a n d r e c o g n iz e d d e a le rs in in v e st m e n t se cu ritie s f o r b ills to be m a in t a in e d o n the b o o k - e n t r y r e c o r d s o f F e d e ra l R e s e rv e B a n k s a n d B r a n c h e s. A d e p o sit o f 2 p erce nt o f the p a r a m o u n t o f the b ills a p p lie d fo r m u s t a c c o m p a n y te n d e rs f o r su c h b ills f r o m o th e rs, u n le s s a n e x p re ss g u a r a n t y o f p a y m e n t b y a n in c o rp o r a t e d b a n k o r tru st c o m p a n y a c c o m p a n ie s the ten de rs. P u b lic a n n o u n c e m e n t w ill be m a d e b y the D e p a r t m e n t o f the T r e a s u r y o f the a m o u n t a n d p ric e ra n g e o f a ccep ted b id s. C o m p e t it iv e b id d e r s w ill b e a d v ise d o f the a cc e p ta n c e o r re je ctio n o f t h e ir ten de rs. T h e S e c re ta ry o f the T r e a s u r y e x p re ss ly rese rv e s the rig h t to accep t o r reject a n y o r all ten de rs, in w h o le o r in pa rt, a n d the S e c re t a r y ’s a c t io n s h a ll b e fin a l. S u b ject to these re se rv a tio n s, n o n c o m p e t it iv e te n d e rs f o r each issu e fo r $ 5 0 0 ,0 0 0 o r less w it h o u t stated p rice f r o m a n y o n e b id d e r w ill be accep ted in fu ll at the w e ig h te d a v e ra g e p ric e (in three d e c im a ls ) o f a ccep ted c o m p e titive b id s f o r the re sp e ctive issu es. S e ttle m e n t fo r a ccep ted te n d e rs fo r b ills to be m a in t a in e d o n the b o o k e n try r e c o r d s o f F e d e ra l R e se rv e B a n k s a n d B r a n c h e s m u s t be m a d e o r c o m p le te d at the F e d e ra l R e se rv e B a n k o r B r a n c h o n J u n e 17, 1982, in c a s h o r o th e r im m e d ia t e ly a v a ila b le f u n d s o r in T r e a s u r y b ills m a t u rin g J u n e 17, 1982. C a s h a d ju s t m e n t s w ill b e m a d e fo r d iffe re n c e s betw een the p a r v a lu e o f the m a t u r in g b ills a cc e p te d in e x c h a n g e a n d the issu e p rice o f the n e w b ills. U n d e r S e c tio n 4 5 4 (b ) o f the In t e r n a l R e v e n u e C o d e , the a m o u n t o f d is c o u n t at w h ic h these b ills a re s o ld is c o n s id e r e d to a c c ru e w h e n the b ills a re s o ld , red ee m e d , o r o th e rw ise d is p o s e d o f. S e c tio n 1 2 3 2 (a )(4 ) p ro v id e s that a n y g a in o n the sa le o r re d e m p tio n o f these b ills that d o e s n o t exceed the ra ta b le s h a r e o f the a c q u is it io n d is c o u n t m u s t be in c lu d e d in the F e d e ra l in c o m e tax re tu rn o f the o w n e r a s o r d in a r y in c o m e . T h e a c q u is it io n d is c o u n t is the excess o f the stated re d e m p tio n p rice o v e r the t a x p a y e r ’s b a sis (co st) fo r the bill. T h e ra ta b le sh a re o f th is d is c o u n t is d e te rm in e d b y m u lt ip ly in g su c h d is c o u n t b y a fr a c t io n , the n u m e r a to r o f w h ic h is the n u m b e r o f d a y s the ta x p a y e r h e ld the b ill a n d the d e n o m in a t o r o f w h ic h is the n u m b e r o f d a y s f r o m the d a y f o llo w in g the t a x p a y e r ’s d a te o f p u r c h a s e to the m a tu rity o f the b ill. I f the g a in o n the sa le o f a b ill excee d s the t a x p a y e r ’s ra ta b le p o r t io n o f the a c q u is itio n d is c o u n t, the excess g a in is treated a s sh o rt -te rm c a p ita l ga in . D e p a r t m e n t o f the T r e a s u r y C ir c u la r s , P u b l ic D e b t S e r ie s — N o s . 2 6 -7 6 a n d 2 7 -7 6 , a n d th is notice , p re sc rib e the te rm s o f these T r e a s u r y b ills a n d g o v e r n the c o n d it io n s o f th e ir issu e. C o p ie s o f the c irc u la rs a n d te n d e r f o r m s m a y be o b t a in e d f r o m a n y F e d e ra l R e s e rv e B a n k o r B r a n c h , o r f r o m the B u r e a u o f the P u b l ic D e b t. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, June 14, 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. SOLOMON, President (over ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 10, 1982) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing September 9, 1982 D is c o u n t R a te R a te ' 96.962 96.936 96.948 H ig h ............................. ............. Low ............................. .............. A verage....................... ............. I n v e s tm e n t P r ic e 12.018% 12.121% 12.074% 182-Day Treasury Bills Maturing December 9, 1982 12.57% 12.68% 12.63% D is c o u n t P r ic e 93.888a 93.867 93.874 I n v e s tm e n t R a te R a te ' 12.090% 12.131% 12.117 % 2 13.06% 13.10% 13.09% 'E q u iv a le n t c o u p o n - is s u e yie ld . JT h e fo u r -w e e k a v e ra g e f o r c a lc u la t in g the m a x im u m in te re st rate p a y a b le o n m o n e y m a rk e t ce rtifica te s is 1 1 . 8 9 2 % . aE x c e p t in g t w o te n d e rs t o t a lin g $ 1 ,2 2 5 ,0 0 0 . percent of the amount of 91-day bills bid for at the low price was accepted.) (39 percent of the amount of 182-day bills bid for at the low price was accepted.) (7 2 Total Tenders Received and Accepted 91-Day Treasury Bills Maturing September 9, 1982 R e c e iv e d B y F .R . D is tr ic t ( a n d U .S . T re a su ry) A c c e p te d 63,050,000 9,990,875,000 35,990,000 69,640,000 40,365,000 60,345,000 989,195,000 50,615,000 19,745,000 48,520,000 22,675,000 884,205,000 $ 58,590,000 3,520,475,000 35,990,000 63,640,000 40,265,000 60,345,000 510,395,000 41,615,000 19,745,000 48,520,000 22,675,000 334,205,000 U.S. Treasury......................... 244,140,000 T o t a l s ......................... $12,519,360,000 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......................... $ 182-Day Treasury Bills Maturing December 9, 1982 R e c e iv e d $ A c c e p te d 54,090,000 11,126,150,000 18,470,000 29,215,000 57,245,000 36,150,000 766,670,000 36,930,000 24,755,000 26,605,000 19,125,000 736,625,000 $ • 42,340,000 4,219,105,000 18,470,000 28,965,000 42,025,000 35,350,000 181,420,000 21,930,000 23,755,000 26,605,000 19,125,000 141,625,000 244,140,000 199,315,000 199,315,000 $5,000,600,000 $13,131,345,000 $5,000,030,000 of b id d e r Public Com petitive................... $ 9,979,285,000 1,074,575,000 Noncompetitive.............. $11,053,860,000 S u b t o t a l s ................... 1,162,300,000 Federal Reserve..................... 303,200,000 Foreign Official Institutions . . $2,460,525,000 1,074,575,000 $11,096,595,000 676,850,000 $2,965,280,000 676,850,000 $3,535,100,000 1,162,300,000 303,200,000 $11,773,445,000 1,170,000,000 187,900,000 $3,642,130,000 1,170,000,000 187,900,000 $12,519,360,000 $5,000,600,000 $13,131,345,000 $5,000,030,000 B y c la s s T o t a l s ............................
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