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FEDERAL RESERVE BANK OF NEW YORK F isc a l A g e n t o f th e U n ite d S ta tes Circular N o . 9564 O ctober 12, 1983 OFFERING OF TWO SERIES OF TREASURY BILLS $ 6,000,000,000 o f 91-D ay B ills, T o Be Issued O ctober 20, 1983, D ue January 19, 1984 $6,000,000,000 o f 182-D ay B ills, T o Be Issued O ctober 20, 1983, D ue April 19, 1984 To A ll 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 Departm ent o f the Treasury, by this public n otice, invites tenders for tw o series o f Treasury bills totaling approxim ately $12,000 m illion, to be issued O ctober 20, 1983. This offering will result in a paydown for the Treasury o f about $475 m illion, as the maturing bills are outstanding in the am ount o f $12,485 m illion, including $1,350 m illion currently held by Federal Reserve Banks as agents for foreign and international m onetary authorities and $1,973 m illion currently held by Federal Reserve Banks for their own account. The tw o series offered are as follow s: 91-day bills (to maturity date) for approxim ately $6,000 m illion, representing an additional am ount o f bills dated July 21, 1983, and to mature January 19, 1984 (C U SIP N o. 912794 EL4), currently outstanding in the am ount o f $6,269 m illion, the additional and original bills to be freely interchangeable. 182-day bills (to maturity date) for approximately $6,000 m illion, representing an additional am ount o f bills dated April 21, 1983, and to mature April 19, 1984 (C U SIP N o. 912794 EF7), currently outstanding in the am ount o f $7,764 m illion, the additional and original bills to be freely interchangeable. Both series o f bills will be issued for cash and in exchange for Treasury bills maturing October 20, 1983. Tenders from Federal Reserve Banks for them selves and as agents for foreign and international m onetary authorities will be accepted at the weighted average bank discount rates o f accepted com petitive tenders. A dditional am ounts o f the bills may be issued to Federal Reserve Banks, as agents for foreign and international m onetary 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 com petitive and non com petitive bidding, and at maturity their par am ount will be payable w ithout interest. Both series o f bills will be issued entirely in book-entry form in a m inim um am ount o f $10,000 and in any higher $5,000 m ultiple, on the records either o f the Federal Reserve Banks and Branches, or o f the Departm ent 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, prior to 1:30 p .m ., Eastern Daylight Saving tim e, M onday, O ctober 17, 1983. Form PD 4632-2 (for 26-week series) or Form P D 4632-3 (for 13-week series) should be used to subm it tenders for bills to be m aintained on the book-entry records o f the D epartm ent o f the Treasury. Each tender must state the par am ount o f bills bid for, which must be a minim um o f $10,000. Tenders over $10,000 must be in multiples o f $5,000. C om petitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decim als, e .g ., 7.15% . Fractions m ay not be used. Banking institutions and dealers who m ake primary markets in G ov ernm ent securities and report daily to the Federal Reserve Bank o f New York their positions in and borrowings on such securities may subm it tenders for account o f custom ers, if the names o f the custom ers and the am ount for each custom er are furnished. Others are only perm itted to subm it tenders for their ow n account. Each tender must state the am ount o f any net long position in the bills being offered if such position is in excess o f $200 m illion. This inform ation should reflect positions held as o f 12:30 p .m ., Eastern tim e, 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 sam e maturity date as the new offerin g, e.g ., bills with three m onths to m aturity previously offered as six-m onth bills. Dealers w ho m ake primary markets in G overnm ent securities and report daily to the Federal Reserve Bank o f N ew York their positions in and borrowings on such securities, when subm itting tenders for custom ers, must subm it a separate tender for each custom er w hose net long position in the bills being offered exceeds $200 m illion. Paym ent for the full par am ount o f the bills applied for must accom pany all tenders subm itted for bills to be m aintained on the book-entry records o f the D epartm ent o f the Treasury. A cash adjustm ent will be m ade on all accepted tenders for the difference between the par paym ent subm itted and the actual issue price as determ ined in the auction. N o deposit need accom pany tenders from incorporated banks and trust com panies and from responsible and recognized dealers in invest m ent securities for bills to be m aintained 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 paym ent by an incorporated bank or trust com pany accom panies the tenders. Public announcem ent will be m ade by the D epartm ent o f the Treasury o f the am ount and yield range o f accepted bids. C om petitive 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 w hole or in part, and the Secretary’s action shall be final. Sub ject to these reservations, noncom petitive tenders for each issue for $1,000,000 or less w ithout stated yield from any one bidder will be accepted in full at the weighted average bank discount rate (in two decim als) o f accepted com petitive bids for the respective issues. The calculation o f purchase prices for accepted bids will be carried to three decim al places on the basis o f price per hundred, e.g ., 99.923, and the determ inations o f the Secretary o f the Treasury shall be final. Settlem ent for accepted tenders for bills to be m aintained on the bookentry records o f Federal Reserve Banks and Branches must be m ade or com pleted at the Federal Reserve Bank or Branch on O ctober 20, 1983, in cash or other im m ediately-available funds or in Treasury bills maturing O ctober 20, 1983. Cash adjustm ents will be m ade 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 ode, the am ount o f discount at which these bills are sold is considered to accrue when the bills are sold, redeem ed, or otherwise disposed o f. Section 1232(a)(4) provides that any gain on the sale or redem ption o f these bills that does not exceed the ratable share o f the acquisition discount must be included in the Federal incom e tax return o f the owner as ordinary incom e. The acquisition discount is the excess o f the stated redem ption price over the taxpayer’s basis (cost) for the bill. The ratable share o f this discount is determ ined by m ultiplying 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 follow in g the taxpayer’s date o f purchase to the m aturity 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. Departm ent o f the Treasury Circulars, Public D ebt Series— N os. 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 form s m ay be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public D ebt. This Bank will receive tenders for both series prior to 1:30 p.m., Eastern Daylight Saving time, Monday, October 17, 1983, at the Securities Department of its Head Office and at its Buffalo Branch. 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. 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. A N TH O N Y M . SO LO M O N, P r e s id e n t. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 13, 1983) Range of Accepted Competitive Bids 9 1 - D a y T r e a s u r y B i lls M a tu r in g J a n u a r y 12, 1 9 8 4 Low rate.......................... ............ High r a te ........................ ............ Average rate .................. ............ 1 8 2 -D a y T r e a s u r y B ills M a tu r in g A p r i l 12, 1 9 8 4 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 8.80% 8.83% 8.83% 9.15% 9.18% 9.18% 97.776 97.768 97.768 8.95 %a 8.97% 8.97% 9.53% 9.55% 9.55% 95.475 95.465 95.465 ‘Equivalent cou p on -issu e yield. E x c e p tin g tw o tenders totaling $20,000,000. (53 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (77 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted 9 1 - D a y T re a s u ry B ills M a tu r in g J a n u a r y 12, 1 9 8 4 By F.R. D istrict (and U.S. Treasury) Boston...................................... New Y o r k ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tla n ta .................................... Chicago.................................... St. L o u is.................................. M inneapolis............................ Kansas City.............................. Dallas ...................................... San Francisco.......................... Received $ 1 5 0 ,2 6 0 ,0 0 0 1 8 2 - D a y T r e a s u r y B i lls M a tu r in g A p r i l 12, 1 9 8 4 A ccepted $ 5 0 ,5 6 0 ,0 0 0 R eceived $ 1 5 1 ,0 0 5 ,0 0 0 A ccepted $ 4 1 ,0 0 5 ,0 0 0 1 3 ,9 3 3 ,2 4 5 ,0 0 0 4 ,7 8 7 ,7 7 0 ,0 0 0 1 4 ,3 9 8 ,4 7 0 ,0 0 0 4 ,9 4 6 ,5 1 5 ,0 0 0 3 7 ,5 4 0 ,0 0 0 3 7 ,5 4 0 ,0 0 0 2 2 ,5 0 5 ,0 0 0 2 2 ,5 0 5 ,0 0 0 9 1 ,1 8 5 ,0 0 0 5 6 ,4 8 5 ,0 0 0 7 0 ,8 7 0 ,0 0 0 3 9 ,5 7 0 ,0 0 0 4 9 ,2 1 5 ,0 0 0 4 4 ,2 7 5 ,0 0 0 2 0 8 ,5 3 0 ,0 0 0 5 1 ,1 1 0 ,0 0 0 5 0 ,4 6 5 ,0 0 0 1 ,5 2 6 ,6 3 0 ,0 0 0 8 9 ,2 2 5 ,0 0 0 2 6 ,2 2 5 ,0 0 0 4 9 ,2 9 0 ,0 0 0 2 9 7 ,9 4 0 ,0 0 0 7 9 ,5 2 0 ,0 0 0 2 3 ,8 7 5 ,0 0 0 5 0 ,5 9 5 ,0 0 0 1 ,4 2 3 ,0 1 0 ,0 0 0 7 6 ,2 5 5 ,0 0 0 2 6 ,8 1 0 ,0 0 0 4 5 ,5 3 5 ,0 0 0 2 3 3 ,1 7 0 ,0 0 0 6 7 ,2 5 5 ,0 0 0 1 6 ,8 1 0 ,0 0 0 5 3 ,4 7 5 ,0 0 0 3 0 ,6 2 0 ,0 0 0 8 4 7 ,1 9 5 ,0 0 0 5 1 ,4 7 5 ,0 0 0 2 5 ,6 2 0 ,0 0 0 2 0 8 ,4 6 5 ,0 0 0 6 3 ,9 5 5 ,0 0 0 2 6 ,6 2 0 ,0 0 0 1 ,0 2 7 ,4 2 0 ,0 0 0 6 0 ,2 0 5 ,0 0 0 2 1 ,6 2 0 ,0 0 0 7 7 ,0 2 5 ,0 0 0 U.S. Treasury.......................... 3 1 7 ,5 9 0 ,0 0 0 3 1 7 ,5 9 0 ,0 0 0 3 9 7 ,4 1 0 ,0 0 0 3 9 7 ,4 1 0 ,0 0 0 T o t a l s ................................. $ 1 7 ,2 0 2 ,8 7 0 ,0 0 0 $ 6 ,0 3 0 ,4 0 5 ,0 0 0 $ 1 7 ,9 4 3 ,4 5 5 ,0 0 0 $ 6 ,0 1 9 ,7 3 5 ,0 0 0 Public Com petitive.................... Noncompetitive.............. $ 1 4 ,3 3 4 ,4 0 5 ,0 0 0 $ 3 ,1 6 1 ,9 4 0 ,0 0 0 $ 1 4 ,7 8 2 ,0 5 0 ,0 0 0 $ 2 ,8 5 8 ,3 3 0 ,0 0 0 1 ,2 1 4 ,0 7 0 ,0 0 0 1 ,2 1 4 ,0 7 0 ,0 0 0 1 ,1 4 0 ,8 5 5 ,0 0 0 1 ,1 4 0 ,8 5 5 ,0 0 0 S u bto t a l s ......................... $ 1 5 ,5 4 8 ,4 7 5 ,0 0 0 $ 4 ,3 7 6 ,0 1 0 ,0 0 0 $ 1 5 ,9 2 2 ,9 0 5 ,0 0 0 $ 3 ,9 9 9 ,1 8 5 ,0 0 0 Federal R eserve...................... Foreign Official Institutions .. 1 ,6 0 0 ,4 3 5 ,0 0 0 1 ,6 0 0 ,4 3 5 ,0 0 0 1 ,4 0 0 ,0 0 0 ,0 0 0 1 ,4 0 0 ,0 0 0 ,0 0 0 5 3 ,9 6 0 ,0 0 0 5 3 ,9 6 0 ,0 0 0 6 2 0 ,5 5 0 ,0 0 0 6 2 0 ,5 5 0 ,0 0 0 $ 1 7 ,2 0 2 ,8 7 0 ,0 0 0 $ 6 ,0 3 0 ,4 0 5 ,0 0 0 $ 1 7 ,9 4 3 ,4 5 5 ,0 0 0 $ 6 ,0 1 9 ,7 3 5 ,0 0 0 By class o f bidder T o t a l s ...................................... An additional $9,040 thousand of 13-week bills and an additional $79,950 thousand of 26-week bills will be issued to foreign official institutions for new cash.
@FedFRASER