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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular N o . 9653 March 14, 1984 OFFERING OF TWO SERIES OF TREASURY BILLS $6,2©©,©©©,,©©© off 91“D>siy Bills, To Be Issuied M arch 22, 1984, Dee June 21, 1984 $6,2©©,©©©,©©© off 182-Day Bills, To Be Issued March 22, 1984, Due September 2®, 1984 V To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: r Following is the text of a notice issued by the Treasury Department: ‘ -y The Department o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approximately $12,400 million, to be issued March 22, 1984. This offering will result in a paydown for the Treasury, o f about $250 million, as the maturing bills were originally issued in the am ount o f $12,648 million. The two series offered are as follows: 91-day bills (to maturity date) for approxim ately $6,200 m illion, representing an additional am ount o f bills dated Decem ber 22, 1983, and to m ature June 21, 1984 (C U SIP N o. 912794 FC3), currently outstanding in the am ount o f $6,426 m illion, the additional and original bills to be freely interchangeable. 182-day bills for approxim ately $6,200 m illion, to be dated March 22, 1984, and to m ature September 20, 1984 (CUSIP N o . 912794 FV1). Both series o f bills will be issued for cash and in exchange for Treasury bills maturing March 22, 1984. In addition to the m aturing 13-week and 26-week bills, there are $7,774 m illion o f m aturing 52-week bills. The disposition o f this latter am ount was announced last week. Federal Reserve Banks, as agents for foreign and international m onetary authorities, currently hold $1,557 m illion, and Federal Reserve Banks for their own account hold $5,066 m illion o f the maturing bills. These am ounts represent the com bined holdings o f such accounts for the three issues o f maturing bills. 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 ag gregate am ount o f m aturing bills held by them . For purposes o f determ in ing such additional am ounts, foreign and international m onetary authorities are considered to hold $1,127 m illion o f the original 13-week and 26-week issues. The bills will be issued on a discount basis under com petitive and n on com petitive bidding, and at maturity 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 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 D ebt, W ashington, D .C . 20226, prior to 1:30 p .m ., Eastern Standard tim e, M onday, M arch 19, 1984. 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 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 m inim um o f $10,000. Tenders over $10,000 m ust 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 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 m ay submit tenders for account o f custom ers, if the nam es 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 own 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 offering, e.g ., bills with three m onths to m aturity previously offered as six-m onth bills. Dealers who 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. A noncom petitive bidder m ay not have entered into an agreem ent, or m ay not m ake an agreement 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 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 Departm ent o f the Treasury o f the am ount and yield range o f accepted bids. Com 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 March 22, 1984, in cash or other im m ediately-available funds or in Treasury bills maturing March 22, 1984. 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 of. 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. 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 Standard time, Monday, March 19, 1984, 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. P a y m e n t f o r T r e a s u r y b ills c a n n o t b e m a d e b y c r e d it th r o u g h th e T r e a s u r y T a x a n d L o a n A c c o u n t . S e t tle m e n t m u s t b e m a d e in c a sh o r o th e r im m e d ia te ly a v a ila b le f u n d s o r in T r e a s u r y s e c u r itie s m a tu r in g o n o r b e fo r e th e issu e d a te . Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. Anthony M. Solomon, President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED M ARCH 15, 1984) Range of Accepted Competitive Bids 9 1 -D a y T r e a s u r y B ills M a tu r in g J u n e 14, 1 9 8 4 Low rate.......................... ............ High r a te ........................ ............ Average r a t e .................. ............ 1 8 2 -D a y T r e a s u r y B ills M a tu r in g S e p te m b e r 13, 1 9 8 4 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 9.33% 9.37% 9.37% 9.69% 9.73% 9.73% 97.642 97.631 97.631 9.50 % 9.53% 9.52% 10.12% 10.15% 10.14% 95.197 95.182 95.187 'Equivalent coupon-issue yield. (74 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (34 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 r e a s u r y B ills M a tu r in g J u n e 14, 1 9 8 4 B y F .R . D istrict (and U.S. Treasury) Boston...................................... New Y o rk ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tlan ta.................................... Chicago.................................... St. L o u is.................................. Minneapolis............................ Kansas City.............................. Dallas ...................................... San Francisco.......................... Received $ 241,3 8 0 ,0 0 0 15,346,480,000 2 8 ,06 5 ,0 0 0 49 ,6 1 5 ,0 0 0 58,73 0 ,0 0 0 47 ,1 6 0 ,0 0 0 1,418,77 5 ,0 0 0 6 7 ,31 0 ,0 0 0 26,90 5 ,0 0 0 39,87 0 ,0 0 0 30,30 5 ,0 0 0 1,071,93 5 ,0 0 0 1 8 2 -D a y T r e a s u r y B ills M a tu r in g S e p te m b e r 13, 1 9 8 4 A ccepted $ 7 8 ,3 8 0 ,0 0 0 5 ,1 8 0 ,4 2 0 ,0 0 0 2 8 ,0 6 5 ,0 0 0 4 9 ,6 1 5 ,0 0 0 4 4 ,2 1 0 ,0 0 0 4 6 ,0 4 0 ,0 0 0 188,445,000 2 8 ,3 1 0 ,0 0 0 2 1 ,9 0 5 ,0 0 0 39,87 0 ,0 0 0 2 4 ,0 0 5 ,0 0 0 2 4 8 ,9 1 0 ,0 0 0 Received $ 247 ,5 3 5 ,0 0 0 1 3 ,417,165,000 19,470,000 7 2 ,2 9 0 ,0 0 0 55,54 5 ,0 0 0 6 9 ,6 8 0 ,0 0 0 1,16 1 ,6 2 5 ,0 0 0 6 8 ,8 2 5 ,0 0 0 2 6 ,4 8 0 ,0 0 0 5 1 ,4 2 5 ,0 0 0 19,370,000 91 9 ,7 8 0 ,0 0 0 A ccepted $ 5 4 ,4 3 5 ,0 0 0 5 ,2 6 3 ,7 0 5 ,0 0 0 19,4 7 0 ,0 0 0 7 2 ,2 9 0 ,0 0 0 4 9 ,2 2 5 ,0 0 0 5 1 ,3 8 5 ,0 0 0 143,125,000 2 9 ,8 2 5 ,0 0 0 2 2 ,5 2 0 ,0 0 0 5 1 ,4 2 5 ,0 0 0 19,370,000 103,28 0 ,0 0 0 U.S. Treasury.......................... 2 5 3 ,37 5 ,0 0 0 2 5 3 ,3 7 5 ,0 0 0 336,740,000 3 3 6 ,7 4 0 ,0 0 0 T o t a l s ............................... $ 1 8,679,90 5 ,0 0 0 $ 6 ,2 3 1 ,5 5 0 ,0 0 0 $ 1 6 ,4 6 5 ,9 3 0 ,0 0 0 $ 6 ,2 1 6 ,7 9 5 ,0 0 0 $ 1 5,944,41 5 ,0 0 0 1,075,46 0 ,0 0 0 $ 3 ,4 9 6 ,0 6 0 ,0 0 0 1,07 5 ,4 6 0 ,0 0 0 $ 1 3 ,4 1 6 ,5 3 5 ,0 0 0 1,01 0 ,6 9 5 ,0 0 0 $ 3 ,1 6 7 ,4 0 0 ,0 0 0 1 ,0 1 0 ,6 9 5 ,0 0 0 $ 1 7,019,87 5 ,0 0 0 1,624,83 0 ,0 0 0 35,20 0 ,0 0 0 $ 4 ,5 7 1 ,5 2 0 ,0 0 0 1,62 4 ,8 3 0 ,0 0 0 3 5 ,2 0 0 ,0 0 0 $ 1 4 ,4 2 7 ,2 3 0 ,0 0 0 1 ,6 00,000,000 4 3 8 ,7 0 0 ,0 0 0 $ 4 ,1 7 8 ,0 9 5 ,0 0 0 1 ,6 0 0 ,0 0 0 ,0 0 0 4 3 8 ,7 0 0 ,0 0 0 $18,679,90 5 ,0 0 0 $ 6 ,2 3 1 ,5 5 0 ,0 0 0 $ 1 6 ,4 6 5 ,9 3 0 ,0 0 0 $ 6 ,2 1 6 ,7 9 5 ,0 0 0 B y class o f bidder Public Competitive.................... Noncompetitive.............. S ubtotals ........................ Federal Reserve...................... Foreign Official Institutions .. T o t a l s .....................................
@FedFRASER