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FEDERAL RESERVE BAWK OF WEW YORK Fiscal Agent of the United States Circular No. 9483 April 20, 1983 OFFERING OF TWO SERIES OF TREASURY BELLS $6,200,000,000 ©ff 91=Bay Bills, T© Be Issued April 28, 1983, Due July 28, 1983 $6,20©,©©©,®©© ©ff 182-Day Bills, T© Be Issued April 28, 1983, Due October 27, 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 of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $12,400 million, to be issued April 28, 1983. This offering will provide $750 million of new cash for the Treasury, as the regular 13-week and 26-week maturities were issued in the amount of $11,646 million. The $3,003 million of additional issue 143-day cash management bills issued December 6, 1982, and maturing April 28, 1983, will be redeemed at maturity. The $11,646 million of regular maturities includes $1,593 million currently held by Federal Reserve Banks as agents for foreign and inter national monetary authorities and $1,759 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 $6,200 million, representing an additional amount of bills dated January 27, 1983, and to mature July 28, 1983 (CUSIP No. 912794 DK7), currently outstanding in the)amount of $6,032 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $6,200 million, to be dated April 28, 1983, and to mature October 27, 1983 (CUSIP No. 912794 DV3). Both series of bills will be issued for cash and in exchange for Treasury bills maturing April 28, 1983. Tenders from Federal Reserve Banks for themselves and as agents for foreign and international monetary authorities will be accepted at the weighted average bank discount rates of accepted competitive tenders. Additional amounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount of 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 of bills will be issued entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000 multiple, on the records either of the Federal Reserve Banks and Branches, or of the Department of the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D.C. 20226, up to 1:30 p.m., Eastern Daylight Saving time, Monday, April 25, 1983. 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 of the Department of the Treasury. Each tender must state the par amount o f bills bid for, which must be a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. Competitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decimals, e.g., 7.15%. Fractions may not be used. Banking institutions and dealers who make primary markets in Gov ernment securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such securities may submit tenders for account of customers, if the names of 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 of any net long position in the bills being offered if such position is in excess of $200 million. This information should reflect positions held as of 12:30 p.m., Eastern time, on the day of the auction. Such positions would include bills acquired through “ when issued” trading, and futures and forward transactions as well as holdings of 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 of 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 of the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records of the Department of the Treasury. A cash adjustment will be made oq 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 of Federal Reserve Banks and Branches. A deposit of 2 percent of the par amount of the bills applied for must accompany tenders for such bills from others, unless an express guaranty of payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department of the Treasury of the amount and yield range of accepted bids. Competitive bidders will be advised of the acceptance or rejection of their tenders. The Secretary of 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 yield from any one bidder will be accepted in full at the weighted average bank discount rate (in two decimals) of accepted competitive bids for the respective issues. The calculation of purchase prices for accepted bids will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookentry records of Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on April 28, 1983, in cash or other immediately-available funds or in Treasury bills maturing April 28, 1983. Cash adjustments will be made for differences between the par value of the maturing bills accepted in exchange and the issue price of the new bills. Under Section 454(b) of the Internal Revenue Code, the amount of 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 of these bills that does not exceed the ratable share of the acquisition discount must be included in the Federal income tax return of the owner as ordinary income. The acquisition discount is the excess of the stated redemption price over the taxpayer’s basis (cost) for the bill. The ratable share of this discount is determined by multiplying such discount by a fraction, the numerator of which is the number of days the taxpayer held the bill and the denominator of which is the number of days from the day following the taxpayer’s date of purchase to the maturity of the bill. I f the gain on the sale of a bill exceeds the taxpayer’s ratable portion of the acquisition discount, the excess gain is treated -as short-term capital gain. Department of the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, and this notice, prescribe the terms of these Treasury bills and govern the conditions of their issue. Copies of the circulars and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, April 25, 1983, at the Securities Department of its Head Office and at its Buffalo Branch. Revised tender forms for both series are enclosed. Please be sure to use them to submit tenders and return them in the enclosed envelope. 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 a y m e n t f o r Treasury bills ca n n o t be m ade b y credit through the Treasury Tax a n d L o a n A cc o u n t. Settlem en t m u st 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 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 (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 21, 1983) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 21, 1983 Low rate...................................... High r a t e ..................................... Average rate . . . ? ................... .. 182-Day Treasury Bills Maturing October 20, 1983 Discount Rate Investment Rate' Price Discount Rate Investment Rate' Price 8.01 %a 8.05% 8.03% 8.31% 8.35% 8.33% 97.975 97.965 97.970 8.16% 8.23% 8.20%2 8.65% 8.73% 8.70% 95.875 95.839 95.854 ‘Equivalent coupon-issue yield. 2The four-week average for calculating the maximum interest rate payable on money market certificates is 8.46%. Excepting one tender of $4,000,000. (27 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (70 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing July 21, 1983 By F.R. District (and U.S. Treasury) Received Boston.................................... $ 131,515,000 New Y o rk ............................... 14,772,965,000 Philadelphia........................... 25,800,000 Cleveland............................... 91,540,000 49,780,000 Richmond............................... A tla n ta ................................... 49,115,000 1,135,375,000 Chicago................................... St. L o u is................................. 36,550,000 M inneapolis........................... 13,450,000 Kansas City............................. 44,950,000 34,125,000 Dallas .................................... San Francisco......................... 1,298,870,000 182-Day Treasury Bills Maturing October 20, 1983 Accepted $ 32,865,000 5,257,610,000 25,500,000 41,140,000 39,745,000 49,115,000 180,060,000 26,465,000 11,260,000 44,950,000 24,125,000 189,170,000 Received $ Accepted 105,870,000 10,949,940,000 17,775,000 51,430,000 128,575,000 58,030,000 925,830,000 48,405,000 15,490,000 40,190,000 27,670,000 1,063,285,000 $ 35,870,000 4,396,340,000 17,775,000 46,930,000 105,575,000 58,030,000 341,730,000 40,805,000 15,240,000 40,190,000 27,670,000 782,285,000 U.S. Treasury......................... 281,905,000 281,905,000 294,630,000 294,630,000 T o t a l s ................................... $17,965,940,000 $6,203,910,000 $13,727,120,000 $6,203,070,000 $15,761,475,000 937,850,000 ‘ $3,999,445,000 937,850,000 $11,419,060,000 828,530,000 $3,895,010,000 828,530,000 Federal R eserve..................... Foreign Official Institutions.. $16,699,325,000 864,130,000 402,485,000 $4,937,295,000 864,130,000 402,485,000 $12,247,590,000 850,000,000 629,530,000 $4,723,540,000 850,000,000 629,530,000 T o t a l s ................................... $17,965,940,000 $6,203,910,000 $13,727,120,000 $6,203,070,000 By class o f bidder Public Competitive................... Noncompetitive............. S u b t o t a l s ........................... An additional $11,815 thousand of 13-week bills and an additional $25,970 thousand of 26-week bills will be issued to foreign official institutions for new cash.
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