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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States E rcular N o . 9630 ebruary 1, 1984_ OFFERING OF TWO SERIES OF TREASURY BILLS $6,400,000,00© off 91-Bay Bills, To Be Issued February 9, 1984, Due May 10, 1984 $6,400,000,000 off 182-Bay Bills, To Be Issued February 9, 1984, Due August 9, 1984 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 Departm ent o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approxim ately $12,800 m illion, to be issued February 9, 1984. This offering will provide $325 m illion o f new cash for the Treasury, as the m aturing bills are outstanding in the am ount o f $12,465 m illion, including $1,175 m illion currently held by Federal Reserve Banks as agents for foreign and international m onetary authorities and $2,486 m illion currently held by Federal Reserve Banks for their own account. The two series offered are as follow s: 91-day bills (to m aturity date) for approxim ately $6,400 m illion, representing an additional am ount o f bills dated N ovem ber 10, 1983, and to mature M ay 10, 1984 (C U SIP N o. 912794 EY6), currently outstanding in the am ount o f $6,224 m illion, the additional and original bills to be freely interchangeable. 182-day bills (to m aturity date) for approxim ately $6,400 m illion, representing an additional am ount o f bills dated A ugust 11, 1983, and to m ature August 9, 1984 (C U SIP N o. 912794 FF6), currently outstanding in the am ount o f $7,777 m illion, the additional and original bills to be freely inter changeable. Both series o f bills will be issued for cash and in exchange for Treasury bills maturing February 9, 1984. 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 m ay 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 n on com petitive bidding, and at m aturity 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 $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 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, prior to 1:30 p .m ., Eastern Standard tim e, M onday, February 6, 1984. Form PD 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 m aintained on the book-entry records o f the Departm ent o f the Treasury. Each tender m ust 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 m ultiples o f $5,000. Com petitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decim als, e.g ., 7.15% . Fractions may not be used. Banking institutions and dealers w ho m ake primary markets in G ov ernment securities and report daily to the Federal Reserve Bank o f New York their positions in and borrowings on such securities may submit 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 permitted 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 maturity previously offered as six-m onth bills. Dealers who make primary markets in G overnm ent securities and report daily to the Federal Reserve Bank o f New 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 whose net long position in the bills being offered exceeds $200 m illion. A noncom petitive bidder may not have entered into an agreem ent, or m ay not make an agreem ent with respect to the purchase or sale or other disposition o f any noncom petitive awards o f this issue in this auction prior to the designated closing time for receipt o f tenders. 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 Departm ent o f the Treasury. A cash adjustm ent will be m ade on all accepted tenders for the difference between the par payment 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 ment 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 m ust 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 Departm 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 February 9, 1984, in cash or other im m ediately-available funds or in Treasury bills maturing February 9, 1984. Cash adjustm ents will be m ade for differences between the par value o f the m aturing 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 m ust 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 determined 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 ing 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. 26-76 and 27-76, and this notice, prescribe the terms o f these Treasury bills and govern the conditions o f their issue. C opies 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 prior to 1:30 p.m ., Eastern Standard time, M onday, February 6, 1984, at the Securities Departm ent o f 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. Form s 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 confirm ation; no tenders may be submitted by telephone. P a ym en t f o r Treasury bills cannot be m ade b y credit through the Treasury Tax and L o a n A cc o u n t. Settlem en t m u st be m ade in cash or oth er im m ediately available f u n d s o r in Treasury securities m aturing on or b efore the issue date. Results of the last weekly offering of Treasury bills are shown on the reverse side o f this circular. A n t h o n y M . So l o m o n , President. (O V E R ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED FEBRUARY 2, 1984) Range of Accepted Competitive Bids 91-D ay Treasury Bills M aturing M a y 3, 1984 Low r a te ...................................... High r a t e .................................... Average rate .............................. D is c o u n t I n v e s tm e n t R a te R a te 1 8.82% 8.89% 8.87% 182-D ay Treasury Bills M aturing A u g u st 2, 1984 D is c o u n t 9.17% 9.25% 9.22% c I n v e s tm e n t P ric e R a te R a te 1 P r ic e 97.771 97.753 97.758 8.94% 8.98% 8.97% 9.52% 9.56% 9.55% 95.480 95.460 95.465 ‘Equivalent coupon-issue yield. (45 percent o f the am ount o f 91-day bills bid for at the high discount rate was accepted.) (50 percent of the am ount of 182-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted 91-D ay Treasury Bills M a turing M a y 3, 1984 B y F .R . D is tr ic t (a n d U .S . T rea su ry) R e c e iv e d A c c e p te d 240,330,000 12,998,595,000 30,595,000 42,525,000 51,575,000 47,635,000 1,264,535,000 100,860,000 16,145,000 49,035,000 29,930,000 883,090,000 $ 115,330,000 4,946,845,000 30,595,000 42,525,000 51,575,000 47,635,000 400,485,000 63,860,000 16,145,000 49,035,000 29,930,000 347,040,000 U.S. T re asu ry ............................ 265,855,000 ............................ Public C o m p e titiv e ..................... N o n co m petitive............... B o sto n ........................................ New Y o r k .................................. P h ila d elp h ia.............................. Cleveland .................................. R ich m o n d ..................... ............ A t l a n t a ...................................... C h icag o ...................................... St. L o u is .................................... M in n eap o lis.............................. Kansas C ity ................................ Dallas ........................................ San F ran c isc o ............................ T otals 182-Day Treasury Bills M aturing A u g u st 2, 1984 R e c e iv e d $ A c c e p te d 160,210,000 13,519,855,000 16,610,000 66,680,000 59,050,000 46,335,000 1,168,055,000 105,730,000 21,620,000 54,215,000 28,560,000 1,141,150,000 $ 70,210,000 4,854,855,000 16,610,000 56,680,000 56,550,000 46,335,000 329,055,000 66,730,000 21,620,000 54,215,000 28,560,000 451,650,000 265,855,000 349,650,000 349,650,000 $16,020,705,000 $6,406,855,000 $16,737,720,000 $6,402,720,000 $13,895,595,000 1,076,810,000 $4,581,745,000 1,076,810,000 $13,883,345,000 1,083,775,000 $3,848,345,000 1,083,775,000 $14,972,405,000 968,000,000 80,300,000 $5,658,555,000 668,000,000 80,300,000 $14,967,120,000 950,000,000 820,600,000 $4,932,120,000 650,000,000 820,600,000 $16,020,705,000 $6,406,855,000 $16,737,720,000 $6,402,720,000 $ r B y c la ss o f b id d e r S u b t o t a l s ............................. Federal R e s e rv e ....................... Foreign Official Institutions .. T o t a l s ..................................... r r
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