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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular N o . 9384 O ctober 20, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $5,600,000,000 of 91-Day Bills, To Be Issued October 28, 1982, Due January 27, 1983 $5,600,000,000 of 182-Day Bills, To Be Issued October 28, 1982, Due April 28, 1983 To All 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 o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approximately $ 11,200 m illion, to be issued October 28, 1982. This offering will provide $925 million o f new cash for the Treasury, as the maturing bills are outstanding in the amount o f $ 10,275 m illion, including $ 1 ,0 8 0 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $ 1 ,5 8 9 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 $ 5 ,6 0 0 million, representing an additional am ount o f bills dated January 28, 1982, and to mature January 27, 1983 (C U S IP N o . 912794 B Y 9 ), currently outstanding in the amount o f $10,825 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $ 5 ,6 0 0 m illion, to be dated October 28, 1982, and to mature April 28, 1983 (C U S IP N o . 912794 C S1). Both series o f bills will be issued for cash and in exchange for Treasury bills maturing October 28, 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 o f accepted competitive tenders. Additional amounts o f the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate am ount o f tenders for such accounts exceeds the aggregate am ount o f 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 am ount will be payable without interest. Both series o f bills will be issued entirely in book-entry form in a m inimum am ount o f $ 1 0 ,0 0 0 and in any higher $ 5 ,0 0 0 multiple, on the records either o f the Federal Reserve Banks and Branches, or o f the Department o f the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public D ebt, W ashington, D .C . 2 0226, up to 1:30 p .m ., Eastern Daylight Saving time, M onday, October 25, 1982. Form PD 463 2 -2 (for 26-week series) or Form P D 4632-3 (for 13-week series) should be used to submit tenders for bills to be maintained on the book-entry records o f the Department o f the Treasury. Each tender must be for a m inimum o f $ 1 0 ,0 0 0 . Tenders over $10,0 0 0 must be in multiples o f $ 5 ,0 0 0 . In the case o f competitive tenders, the price offered must be expressed on the basis o f 100, with three decimals, e .g ., 9 7 .9 2 0 . Fractions m ay not be used. Banking institutions and dealers who make primary markets in Governm ent securities and report daily to the Federal Reserve Bank o f New Y ork their positions in and borrowings on such securities m ay sub mit tenders for account o f customers, if the names o f the customers and the am ount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state the amount o f any net long position in the bills being offered if such position is in excess o f $200 million. This inform ation should reflect positions held as o f 12:30 p .m ., Eastern time, on the day o f the auction. Such positions would include bills acquired through “ when issued” trading, and futures and forward transactions as well as holdings o f 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 Governm ent securities and report daily to the Federal Reserve Bank o f New Y ork 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 o f the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records o f the Department o f 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. N o deposit need accom pany 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 o f Federal Reserve Banks and Branches. A deposit o f 2 percent o f the par am ount o f the bills applied for must accom pany tenders for such bills from others, unless an express guaranty o f payment by an incorporated bank or trust com pany accompanies the tenders. Public announcement will be made by the Department o f the Treasury o f the am ount and price range o f accepted bids. Competitive bidders will be advised o f the acceptance or rejection o f their tenders. The Secretary o f 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 $ 5 0 0 ,0 0 0 or less without stated price from any one bidder will be accepted in full at the weighted average price (in three decimals) o f accepted com petitive bids for the respective issues. Settlement for accepted tenders for bills to be maintained on the b ook entry records o f Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on October 28, 1982, in cash or other immediately-available funds or in Treasury bills maturing October 28, 1982. Cash adjustments will be made for differences between the par value o f the maturing bills accepted in exchange and the issue price o f the new bills. Under Section 454(b) o f the Internal Revenue C od e, the am ount o f discount at which these bills are sold is considered to accrue when the bills are sold, redeemed, or otherwise disposed o f. Section 1232(a)(4) provides that any gain on the sale or redemption o f these bills that does not exceed the ratable share o f the acquisition discount must be included in the Federal income tax return o f the owner as ordinary incom e. The acquisition discount is the excess o f the stated redemption price over the taxpayer’ s basis (cost) for the bill. The ratable share o f this discount is determined by multiplying such discount by a fraction, the numerator o f which is the number o f days the taxpayer held the bill and the denom inator o f which is the number o f days from the day following the taxpayer’ s date o f purchase to the maturity o f the bill. If the gain on the sale o f a bill exceeds the taxpayer’ s ratable portion o f the acquisition discount, the excess gain is treated as short-term capital gain. Department o f the Treasury Circulars, Public Debt Series— N os. 2 6-76 and 2 7 -7 6 , and this notice, prescribe the terms o f these Treasury bills and govern the conditions o f their issue. Copies o f the circulars and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public Debt. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, October 25, 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. P aym en t f o r Treasury bills cannot be m ade b y credit through the Treasury Tax and Loan A ccou n t. Settlem ent m ust be m ade in cash or other immediately available fu n d s or in Treasury securities maturing on or b efore the issue date. Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. ANTHONY M. SOLOMON, President ,OVFR. RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 21, 1982) Range of Accepted Competitive Bids 9 1 -D a y Treasury Bills M aturing January 20, 1983 Price H ig h .............................. ................. Low .............................. ................. Average........................ ................. 98.142 98.115 98.120 182-D a y Treasury Bills M aturing A pril 21, 1983 Investment Rate' 7.350*70 7.457% 7.437% Price 7.59% 7.71% 7.69% Discount Rate 96.085 96.072 96.076 Discount Rate Investment Rate' 7.744% 7.770% 7.762% 2 8.17% 8.20% 8.19% 'Equivalent coupon-issue yield. 2The four-week average for calculating the m aximum interest rate payable on m oney market certificates is 8 .4 8 0 % . (74 percent of the amount of 91-day bills bid for at the low price was accepted.) (77 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 182-D a y Treasury Bills M aturing A p ril 21, 1983 9 1 -D a y Treasury Bills M aturing January 20, 1983 Boston......................................... New Y o r k .................................. Philadelphia.............................. Cleveland.................................. Richmond.................................. A tla n ta ....................................... Chicago....................................... St. L o u is..................................... Minneapolis.............................. Kansas City................................ Dallas ......................................... San Francisco............................ U.S. Treasury............................ T o tals ........................................ $ 4 3 ,4 4 0 ,0 0 0 1 0 ,6 8 3 ,7 4 5 ,0 0 0 2 8 ,8 2 0 ,0 0 0 5 1 ,8 4 5 ,0 0 0 3 6 ,2 6 5 ,0 0 0 4 8 ,0 9 5 ,0 0 0 8 4 7 ,5 7 0 ,0 0 0 5 2 ,5 7 0 ,0 0 0 1 1 ,7 8 0 ,0 0 0 4 4 ,7 9 0 ,0 0 0 2 6 ,0 0 0 ,0 0 0 7 5 9 ,4 9 0 ,0 0 0 Received Accepted Received By F.R. District (and U.S. Treasury) $ 4 1 ,4 4 0 ,0 0 0 4 ,4 6 2 ,7 4 5 ,0 0 0 2 8 ,8 2 0 ,0 0 0 4 1 ,8 4 5 ,0 0 0 3 6 ,2 6 5 ,0 0 0 4 7 ,4 9 5 ,0 0 0 2 8 9 ,0 7 0 ,0 0 0 4 1 ,5 7 0 ,0 0 0 1 1 ,7 8 0 ,0 0 0 4 4 ,7 9 0 ,0 0 0 2 6 ,0 0 0 ,0 0 0 2 5 1 ,4 9 0 ,0 0 0 $ 5 2 ,7 0 0 ,0 0 0 1 1 ,9 5 9 ,7 6 5 ,0 0 0 1 7 ,6 6 0 ,0 0 0 2 9 ,9 5 5 ,0 0 0 9 1 ,7 9 5 ,0 0 0 2 8 ,8 6 5 ,0 0 0 9 1 3 ,5 1 5 ,0 0 0 4 3 ,3 8 5 ,0 0 0 1 8 ,3 1 5 ,0 0 0 2 4 ,2 7 0 ,0 0 0 9 ,7 9 5 ,0 0 0 1 ,0 4 7 ,1 3 5 ,0 0 0 Accepted $ 2 7 ,7 0 0 ,0 0 0 4 ,9 7 4 ,2 3 5 ,0 0 0 1 7 ,5 0 0 ,0 0 0 1 8 ,9 5 5 ,0 0 0 2 8 ,2 9 5 ,0 0 0 2 4 ,4 6 5 ,0 0 0 4 7 ,8 1 5 ,0 0 0 3 1 ,1 6 5 ,0 0 0 7 ,8 1 5 ,0 0 0 2 4 ,2 4 0 ,0 0 0 9 ,7 9 5 ,0 0 0 5 8 ,1 3 5 ,0 0 0 2 8 1 ,2 8 5 ,0 0 0 $ 1 2 ,9 1 5 ,6 9 5 ,0 0 0 2 8 1 ,2 8 5 ,0 0 0 $ 5 ,6 0 4 ,5 9 5 ,0 0 0 3 3 5 ,1 1 0 ,0 0 0 $ 1 4 ,5 7 2 ,2 6 5 ,0 0 0 3 3 5 ,1 1 0 ,0 0 0 $ 5 ,6 0 5 ,2 2 5 ,0 0 0 $ 1 0 ,9 6 8 ,3 6 5 ,0 0 0 9 6 9 ,6 0 0 ,0 0 0 $ 1 1 ,9 3 7 ,9 6 5 ,0 0 0 8 8 7 ,9 3 0 ,0 0 0 8 9 ,8 0 0 ,0 0 0 $ 1 2 ,9 1 5 ,6 9 5 ,0 0 0 $ 3 ,6 5 7 ,2 6 5 ,0 0 0 9 6 9 ,6 0 0 ,0 0 0 $ 4 ,6 2 6 ,8 6 5 ,0 0 0 8 8 7 ,9 3 0 ,0 0 0 8 9 ,8 0 0 ,0 0 0 $ 5 ,6 0 4 ,5 9 5 ,0 0 0 $ 1 2 ,6 4 9 ,4 7 5 ,0 0 0 7 3 2 ,9 9 0 ,0 0 0 $ 1 3 ,3 8 2 ,4 6 5 ,0 0 0 8 2 5 ,0 0 0 ,0 0 0 3 6 4 ,8 0 0 ,0 0 0 $ 1 4 ,5 7 2 ,2 6 5 ,0 0 0 $ 3 ,6 8 2 ,4 3 5 ,0 0 0 7 3 2 ,9 9 0 ,0 0 0 $ 4 ,4 1 5 ,4 2 5 ,0 0 0 8 2 5 ,0 0 0 ,0 0 0 3 6 4 ,8 0 0 ,0 0 0 $ 5 ,6 0 5 ,2 2 5 ,0 0 0 By class o f bidder Public Competitive..................... Noncompetitive............... S u b t o t a l s ............................... Federal Reserve........................ Foreign Official Institutions .. T o tals ........................................
@FedFRASER