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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9401 November 17, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $5,600,000,000 of 90-Day Bills, To Be Issued November 26, 1982, Due February 24, 1983 $5,600,000,000 of 181-Day Bills, To Be Issued November 26, 1982, Due May 26, 1983 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 o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approximately $ 1 1 ,2 0 0 m illion, to be issued Novem ber 26, 1982. This offering will provide $750 million o f new cash for the Treasury, as the maturing bills are outstanding in the amount o f $ 1 0 ,4 4 9 m illion, including $ 1 ,2 8 6 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $2 ,3 0 7 million currently held by Federal Reserve Banks for their own account. The two series offered are as follows: 90-day bills (to maturity date) for approximately $5,600 million, representing an additional amount o f bills dated February 25, 1982, and to mature February 24, 1983 (C U SIP N o . 912794 B Z6), currently outstanding in the amount o f $10,790 million, the additional and original bills to be freely interchangeable. 181-day bills for approximately $ 5,600 million, to be dated November 26, 1982, and to mature M ay 26, 1983 (C U SIP N o . 912794 C V 4 ). Both series o f bills will be issued for cash and in exchange for Treasury bills maturing November 26, 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 amount o f tenders for such accounts exceeds the aggregate amount 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 amount will be payable without interest. Both series o f bills will be issued entirely in book-entry form in a minimum amount o f $10,000 and in any higher $5,000 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 Debt, W ashington, D .C . 20226, up to 1:30 p .m ., Eastern Standard time, M onday, November 22, 1982. Form P D 4632-2 (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 minimum o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. 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 .920. Fractions may not be used. Banking institutions and dealers w ho make primary markets in Governm ent securities and report daily to the Federal Reserve Bank o f New York 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 m illion. This information 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 m illion. Payment for the full par am ount 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 c om petitive bids for the respective issues. Settlement for accepted tenders for bills to be maintained on the b o o k entry records o f Federal Reserve Banks and Branches must be m ade or completed at the Federal Reserve Bank or Branch on N ovem ber 26, 1982, in cash or other immediately-available funds or in Treasury bills maturing N ovem ber 26, 1982. Cash adjustments will be made for differences be tween 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 o d 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 o s. 2 6 -7 6 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 form s m ay 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 Standard time, M onday, November 22, 1982, at the Securities Department o f 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 o f this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Paym ent fo r Treasury bills cannot be m ade by credit through the Treasury Tax and Loan Account. Settlem ent m ust be m ade in cash or other im m ediately available fu n d s or in Treasury securities m aturing on or before the issue date. Results o f the last weekly offering o f Treasury bills are shown on the reverse side o f this circular. ANTHONY M . SOLOMON, P resid e n t Please note that the current offering is fo r 90-day and 181-day Treasury Bills. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 18, 1982) Range of Accepted Competitive Bids 9 1 -D a y Treasury Bills M aturing February 17, 1983 High........................... ............... Low ........................... ............... Average..................... ............... Price 97.877 97.858 97.865 Discount Rate 182-D a y Treasury Bills M aturing M a y 19, 1983 Investm ent Rate' 8.399% 8.474% 8.446% Price 95.706 95.672 95.683 8.70% 8.78% 8.75% Discount Rate 8.494% 8.561% 8.539%2 Investm ent Rate' 9.00 % 9.07% 9.05% 'Equivalent coupon-issue yield. JT he four-week average for calculating the m axim um interest rate payable on m oney market certificates is 8 .4 0 9 % . (01 percent of the amount of 91-day bills bid for at the low price was accepted.) (45 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Received and Accepted 9 1 -D a y Treasury Bills M aturing February 17, 1983 Received B y F.R. District (and U.S. Treasury) B o sto n .............................................. New Y o r k ...................................... P hilad elph ia.................................. C lev ela n d ....................................... R ichm ond....................................... A tla n ta ........................................... C h icago........................................... St. L o u is ......................................... M in n ea p o lis.................................. Kansas C ity .................................... Dallas .............................................. San F rancisco............................... U .S. T reasury............................... T ............................... o tals 182-D a y Treasury Bills M aturing M a y 19, 1983 Received Accepted $ 50,735,000 4,703,625,000 45,760,000 49,940,000 39,005,000 34,125,000 116,600,000 34,155,000 9,220,000 51,845,000 17,840,000 173,735,000 238,075,000 274,230,000 274,230,000 $12,414,975,000 $5,600,275,000 $11,794,040,000 $5,600,815,000 $10,233,480,000 930,280,000 $3,418,780,000 930,280,000 $ 9,556,860,000 799,580,000 $3,363,635,000 799,580,000 $11,163,760,000 1,066,515,000 184,700,000 $4,349,060,000 1,066,515,000 184,700,000 $10,356,440,000 1,050,000,000 387,600,000 $4,163,215,000 1,050,000,000 387,600,000 $12,414,975,000 $5,600,275,000 $11,794,040,000 $5,600,815,000 46,020,000 10,196,420,000 31,600,000 54,235,000 40,405,000 50,805,000 858,345,000 43,810,000 11,565,000 47,810,000 32,935,000 762,950,000 $ 46,020,000 4,627,920,000 31,600,000 34,235,000 35,405,000 49,305,000 288,345,000 41,810,000 9,565,000 47,810,000 27,935,000 122,250,000 238,075,000 $ Accepted 81,235,000 9,768,625,000 120,760,000 82,940,000 51,430,000 37,150,000 652,600,000 44,655,000 13,220,000 57,620,000 22,840,000 586,735,000 $ By class o f bidder Public C o m p etitiv e........................ N on com p etitive................. S ........................ Federal R ese r v e .......................... Foreign O fficial Institutions .. ubtotals T o tals ........................................
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