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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9421 December 15, 1982 OFFERING OF TWO SERIES OF TREASURY BILLS $5,800,000,000 of 91-Day Bills, To Be Issued December 23, 1982, Due March 24, 1983 $5,800,000,000 of 182-Day Bills, To Be Issued December 23, 1982, Due June 23, 1983 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f 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 $11,600 million, to be issued December 23, 1982. This offering will provide $1,425 million o f new cash for the Treasury, as the maturing bills are outstanding in the amount o f $10,182 million, including $1,025 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $2,691 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 $5,800 million, representing an additional amount o f bills dated March 25, 1982, and to mature March 24, 1983 (CUSIP No. 912794 CA0), currently outstanding in the amount o f $10,967 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $5,800 million, to bo dated December 23, 1982, and to mature June 23, 1983 (CUSIP No. 912794 CY8). Both series o f bills will be issued for cash and in exchange for Treasury bills maturing December 23, 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, Washington, D.C. 20226, up to 1:30 p.m ., Eastern Standard time, Monday, December 20, 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 o f the Department o f the Treasury. Each tender must be for a minimum o f $10,000. Tenders over S10,000 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., 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 o f New York their positions in and borrowings on such securities may sub mit tenders for account o f customers, if the names o f 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 o f any net long position in the bills being offered if such position is in excess o f $200 million. 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 Government securities and report daily to the Federal Reserve Bank o f 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 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. 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 o f Federal Reserve Banks and Branches. A deposit o f 2 percent o f the par amount o f the bills applied for must accompany tenders for such bills from others, unless an express guaranty o f payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department o f the Treasury o f the amount and price range o f accepted bids. Competitive bidders will be advised o f the acceptance or rejer ion 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 $500,000 or less without stated price from a iy 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 bookentry records o f Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on December 23, 1982, in cash or other immediately-available funds or in Treasury bills maturing December 23, 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 Code, the amount o f 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 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 income. 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 denominator 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— Nos. 26-76 and 27-76, 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 Standard time, Monday, December 20, 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 for Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately availablefunds 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 (O V E R ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED DECEMBER 16, 1982) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing March 17, 1983 H igh............................. ................ Low ............................. ................ A verage....................... ................ Price 97.985 97.975 97.979 Discount Rate 182-Day Treasury Bills Maturing June 16, 1983 Investment Rate' 7.971% 8 .0 1 1 % 7.995% Price 8.25% 8.29% 8.27% 95.862 95.840 95.852 Discount Rate 8.185% 8.229% 8.205%2 Investment Rate' . % 8.70% 8 .6 8 % 8 66 'Equivalent coupon-issue yield. 2The four-week average for calculating the maximum interest rate payable on money market certificates is 8.269%. (79 percent of the amount of 91-day bills bid for at the low price was accepted.) (52 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 March 17, 1983 By F.R. District (and U.S. Treasury) Received Boston....................................... $ 36,145,000 New Y o rk ................................. 12,049,880,000 32,180,000 Philadelphia............................. 104,730,000 Cleveland................................. 38,355,000 Richmond................................. 35,230,000 A tlan ta ..................................... 928,140,000 Chicago..................................... 57,310,000 St. L ouis................................... 24,890,000 M inneapolis............................. 40,090,000 Kansas C ity............................... 21,555,000 Dallas ....................................... 846,730,000 San Francisco........................... 184,645,000 U.S. Treasury........................... $14,399,880,000 T ................................... otals Accepted 182-Day Treasury Bills Maturing June 16, 1983 $ Received Accepted $ 30,145,000 5,151,055,000 30,705,000 43,650,000 33,335,000 34,870,000 131,540,000 48,310,000 9,890,000 37,280,000 21,555,000 43,990,000 184,645,000 $5,800,970,000 79,120,000 12,676,990,000 66,755,000 64,930,000 38,995,000 28,525,000 1,024,325,000 54,030,000 14,630,000 36,070,000 14,480,000 792,610,000 184,645,000 $15,076,105,000 $ 34,320,000 5,259,420,000 16,755,000 21,430,000 23,995,000 25,425,000 100,325,000 35,030,000 8,430,000 35,915,000 9,480,000 52,310,000 184,645,000 $5,807,480,000 $3,422,515,000 792,025,000 $4,214,540,000 1,445,030,000 141,400,000 $5,800,970,000 $12,605,380,000 587,525,000 $13,192,905,000 1,425,000,000 458,200,000 $15,076,105,000 $3,336,755,000 587,525,000 $3,924,280,000 1,425,000,000 458,200,000 $5,807,480,000 By class o f bidder Public Com petitive..................... $12,021,425,000 792,025,000 Noncompetitive.............. $12,813,450,000 S ........................... Federal Reserve....................... 1,445,030,000 141,400,000 Foreign Official Institutions .. $14,399,880,000 T ................................... ubtotals otals
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