The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF NEW YORK F iscal A gen t o f the U n ited States Circular No. 9310 June 16, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $4,500,000,000 of 91-Day Bills, To Be Issued June 24, 1982, Due September 23, 1982 $4,500,000,000 of 182-Day Bills, To Be Issued June 24, 1982, Due December 23, 1982 T o A l l 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 istr ic t: Following is the text of a notice issued yesterday by the Treasury Department: T h e D e p a r t m e n t o f the T r e a s u r y , b y th is p u b lic n o tice , in v ite s te n d e rs f o 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 $ 9 ,0 0 0 m illio n , to b e is su e d J u n e 24, 1982. T h is o f f e r in g w ill re su lt in a p a y d o w n f o r the T r e a s u r y o f a b o u t $ 5 5 0 m illio n , as the m a t u r in g b ills are o u t s t a n d in g in the a m o u n t o f $ 9 ,5 4 4 m illio n , in c lu d in g $871 m illio n c u r re n t ly h eld b y F e d e ra l R e s e r v 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 ry a u t h o r it ie s a n d $ 2 ,6 4 1 m illio n c u r re n t ly h e ld b y F e d e ra l R e s e r v e B a n k s f o r t h e ir o w n a c c o u n t . T h e t w o series o ffe re d are a s fo llo w s : 9 1 -d a y b ills (to m a t u r it y d ate ) f o r a p p r o x im a t e ly $ 4 ,5 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 25, 1982, a n d to m a tu re S e p t e m b e r 23, 19 8 2 ( C U S I P N o . 9 1 2 7 9 4 B M 5 ) , 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 3 9 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 $ 4 ,5 0 0 m illio n , to be dated J u n e 24, 1982, a n d to m a tu re D e c e m b e r 2 3, 1982 ( C U S I P N o . 912794 B X 1 ). T h e s iz e o f th is o ffe r in g h a s b e e n r e d u c e d to e n su re th a t th e s e ttle m e n t o f th e 2 -y e a r n o te s to b e a u c tio n e d to m o r r o w can ta k e p la c e a s s c h e d u le d o n J u n e 30, e v e n i f th e re h a s b e e n n o C o n g r e s s io n a l a c tio n to in c re a se th e d e b t c e ilin g b y th a t tim e . A s p r e v io u s ly a n n o u n c e d , T re a su ry w ill b e f o r c e d to p o s tp o n e th e 4 -y e a r n o te a u c tio n s c h e d u le d f o r J u n e 23 , 1982, u n le ss it h a s a ssu ra n c e o f C o n g r e s s io n a l a c tio n to in c re a se th e d e b t ceilin g b y th a t d a te . B o t h series o f b ills w ill be is su e d fo 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 24, 1982. T e n d e r s f r o m F e d e ra l R e s e r v e B a n k s fo r t h 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 te rn a t io n a l m o n e t a ry a u t h 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 rice 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 rv e B a n k s , as a g e n ts fo r fo r e ig n a n d in te rn a t io n a l m o n e t a ry a u th o r it ie 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 fo r s u c h a c c o u n t s e x cee 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 them . T h e b ills w ill be is su e d o n a d is c o u n t b a s is 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 r it 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 e ith e r o f the F e d e ra l R e s e r v e B a n k s a n d B r a n c h e s , o r o f th e 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 received 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 lic 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 21, 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 ( f o r 1 3 -w e ek 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 i m 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 d e rs, the p ric e o f fe re d m u s t be e x p re sse d o n the b a s is 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 se d . B a n k i n g in s t it u t io n s a n d d e a le 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 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 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 fo 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 f fe 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 eld 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 t io 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 ’’ tra 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 t io n s a s w e ll a s 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 r in 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 f fe 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 c u ritie s a n d r e 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 secu rities, w h e n s u b m it t in g te n d e rs f o r c u s to m e rs , m u s t s u b m it a se p a ra te te n d e 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 fo r m u s t a c c o m p a n y a ll te n d e rs s u b m itt e d 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 re 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 s h 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 s u b m itt e d a n d the a c tu a l is su e p ric e 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 te n d e 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 r e 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 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 F e d e ra l R e s e r v 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 f o r m u s t a c c o m p a n y te n d e rs fo r s u 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 r a n g e o f a cc e p te d b id s. C o m p e t it iv e b id d e r s w ill be a d v is e d o f the a cc e p ta n c e o r re je c tio n o f th e ir ten d e rs. T h e S e c re ta ry o f the T r e a s u r y e x p r e ss ly re se rv e s the r ig h t to a cc e p t o r reject a n y o r all te n d e rs, in w h o le o r in p a rt, a n d the S e c re t a r y ’s a c t io n s h a ll be fin a l. S u b ject to these r e s e rv a tio n s , n o n c o m p e t it iv e te n d e rs fo r each is su e fo r $ 5 0 0 , 0 0 0 o r less w it h o u t stated p ric e 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 accep ted c o m p e titiv e b id s f o r the re sp e ctiv e issu es. S e ttle m e n t f o 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 t ry re 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 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 s e rv e B a n k o r B r a n c h o n J u n e 24, 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 r in g J u n e 24, 1982. C a s h a d ju s t m e n t s w ill be m a d e f o r d iffe re n c e s b etw 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 ric e 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 , re d ee m e d , o r o th e rw is e d is p o s e d of. 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 r e d e m p tio n o f these b ills tha t 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 r e d e m p tio n p ric e o v e r the t a x p a y e r ’s b a s is (c o st) fo r the b ill. T h e ra ta b le s h a r e 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 s u c h d is c o u n t b y a fra c t io n , the n u m e r a t o r o f w h ic h is the n u m b e r o f d a y s the t a 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 t u r it y o f the b ill. I f the g a in o n the sa le o f a b ill e x cee 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 it io n d is c o u n t , the e x cess g a in is tre ate d a s sh o rt -te rm c a p ita l g a 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 s c 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 r v 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 21, 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 r e s id e n t f O V F B 'i RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 17, 1982) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing September 16, 1982 H ig h ........................... ................ Low ........................... ................ A verage...................... ................ 182-Day Treasury Bills Maturing December 16, 1982 D is c o u n t I n v e s tm e n t P ric e R a te R a te ' P ric e R a te R a te ' 96.916 96.899 96.904 12.200% 12.268% 12.248% 12.76% 12.84% 12.81% 93.700 93.667 93.679 12.462% 12.527% 12.503%* 13.48% 13.56% 13.53% D is c o u n t I n v e s tm e n t 'E q u iv a le n t c o u p o n - is s u e yie ld . 2T h e fo u r -w e e k a v e r a g e f o r c a lc u la t in g the m a x im u m interest rate p a y a b le o n m o n e y m a rk e t ce rtificate s is 1 1 . 9 7 1 % . (44 percent of the amount of 91-day bills (45 percent of the amount of 182-day bills bid for at the low price was accepted.) bid for at the low price was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing September 16, 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 ) 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 ............................ U.S. Treasury ............................ T o t a l s ............................ $ 182-Day Treasury Bills Maturing December 16, 1982 A c c e p te d 93,305,000 11,334,930,000 86,930,000 102,655,000 43,815,000 47,200,000 917,055,000 43,820,000 19,545,000 45,040,000 29,195,000 808,040,000 $ 64,035,000 3,913,615,000 36,930,000 81,755,000 41,630,000 45,850,000 98,055,000 31,820,000 8,505,000 44,545,000 24,195,000 387,465,000 226,485,000 R e c e iv e d $ A c c e p te d 102,255,000 10,285,530,000 16,930,000 94,390,000 40,315,000 31,080,000 781,345,000 36,640,000 20,425,000 35,725,000 12,785,000 607,195,000 $ 71,755,000 4,119,380,000 16,930,000 77,390,000 37,315,000 30,225,000 208,345,000 22,640,000 17,425,000 35,725,000 12,785,000 191,370,000 226,485,000 159,490,000 159,490,000 $13,798,015,000 $5,004,885,000 $12,224,105,000 $5,000,775,000 $11,078,520,000 1,044,765,000 $2,285,390,000 1,044,765,000 $10,014,420,000 637,285,000 $2,791,090,000 637,285,000 $12,123,285,000 1,261,130,000 413,600,000 $3,330,155,000 1,261,130,000 413,600,000 $ 10,65 T,705,000 1,260,000,000 312,400,000 $3,428,375,000 1,260,000,000 312,400,000 $13,798,015,000 $5,004,885,000 $12,224,105,000 $5,000,775,000 B y c la ss o f b id d e r 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 ..............................
@FedFRASER