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FEDERAL RESERVE BANK OF HEW YORK Fiscal A gent o f the U nited States [" c ir c u la r N o . 9 6 6 0 I__ M a r c h 2 8 , 1 9 8 4 _ OFFERING OF TWO SEMES OF TREASURY BILLS $6,TOO,000,00© o f 91=Day Bills, T o Be Issued A pril 5, 1984, Due July 5, 19§4 $6,©©©,®©®,©©© ©ff l§ 2 4 M y Bills, T© Be Issued A pril 5, 1984, D ee O ctober 4, 1984 ToAll BankingInstitutions, andOthersConcerned, intheSecondFederalReserveDistrict: Following is the text of a notice issued by the Treasury Departm ent: T h e D e p a r t m e n t o f th e T r e a s u r y , b y th is p u b lic n o t ic e , in v it e s te n d e r s f o r t w o s e r ie s o f T r e a s u r y b ills to t a lin g a p p r o x im a t e ly $ 1 2 ,0 0 0 m il lio n , t o b e is s u e d A p r il 5 , 1 9 8 4 . T h is o f f e r in g w ill r e s u lt in a p a y d o w n f o r th e T r e a s u r y o f a b o u t $ 4 7 5 m il lio n , a s th e m a t u r in g b ills a r e o u t s t a n d in g in th e a m o u n t o f $ 1 2 ,4 6 5 m il lio n , in c lu d in g $ 1 ,0 5 1 m il lio n c u r r e n t ly h e ld b y F e d e r a l R e s e r v e B a n k s a s a g e n ts fo r fo r e ig n a n d in t e r n a t io n a l m o n e t a r y a u t h o r it ie s a n d $ 2 ,6 4 4 m il lio n c u r r e n tly h e ld b y F e d e r a l R e s e r v e B a n k s f o r th e ir o w n a c c o u n t . T h e t w o s e r ie s o f f e r e d a r e a s f o ll o w s : 9 1 -d a y b ills (t o m a t u r ity d a t e ) f o r a p p r o x im a t e ly $ 6 ,0 0 0 m il lio n , r e p r e s e n tin g a n a d d it io n a l a m o u n t o f b ills d a t e d J a n u a r y 5 , 1 9 8 4 , a n d t o m a tu r e J u ly 5 , 1 9 8 4 ( C U S I P N o . 9 1 2 7 9 4 F M 1 ) , c u r r e n tly o u t s t a n d in g in t h e a m o u n t o f $ 6 ,4 5 0 m il lio n , th e a d d it io n a l a n d o r ig in a l b ills t o b e fr e e ly in t e r c h a n g e a b le . 1 8 2 -d a y b ills (to m a tu r ity d a te ) fo r a p p r o x im a te ly $ 6 ,0 0 0 m illio n , r e p r e s e n tin g a n a d d it io n a l a m o u n t o f b ills d a t e d O c t o b e r 6 , 1 9 8 3 , a n d t o m a tu r e O c to b e r 4 , 1 9 8 4 ( C U S I P N o . 9 1 2 7 9 4 F H 2 ) , c u r r e n tly o u t s t a n d in g in th e a m o u n t o f $ 7 ,7 6 7 m il lio n , th e a d d it io n a l a n d o r ig in a l b ills t o b e f r e e ly in t e r c h a n g e a b le . B o t h s e r ie s o f b ills w ill b e is s u e d f o r c a s h a n d in e x c h a n g e f o r T r e a s u r y b ills m a t u r in g A p r il 5 , 1 9 8 4 . T e n d e r s f r o m F e d e r a l R e s e r v e B a n k s f o r t h e m s e lv e s a n d a s a g e n ts fo r f o r e ig n a n d in t e r n a t io n a l m o n e t a r y a u t h o r itie s w ill b e a c c e p t e d a t th e w e ig h t e d a v e r a g e b a n k d is c o u n t r a te s o f a c c e p t e d c o m p e t it iv e te n d e r s . A d d i t io n a l a m o u n t s o f th e b ills m a y b e is s u e d t o F e d e r a l R e s e r v e B a n k s , a s a g e n ts fo r fo r e ig n a n d in t e r n a t io n a l m o n e t a r y a u t h o r it ie s , t o th e e x te n t th a t th e a g g r e g a t e a m o u n t o f te n d e r s fo r s u c h a c c o u n t s e x c e e d s th e a g g r e g a t e a m o u n t o f m a t u r in g b ills h e ld b y th e m . T h e b ills w ill b e is s u e d o n a d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n c o m p e t it iv e b id d in g , a n d a t m a t u r ity th e ir p a r a m o u n t w ill b e p a y a b le w it h o u t in t e r e s t . B o t h s e r ie s o f b ills w ill b e is s u e d e n tir e ly in b o o k - e n t r y f o r m in a m in im u m a m o u n t o f $ 1 0 ,0 0 0 a n d in a n y h ig h e r $ 5 ,0 0 0 m u lt ip le , o n th e r e c o r d s e ith e r o f th e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , o r o f th e D e p a r t m e n t o f th e T r e a s u r y . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s a n d a t th e B u r e a u o f th e P u b lic D e b t , W a s h in g t o n , D .C . 2 0 2 2 6 , p r io r t o 1 :0 0 p . m . , E a s t e r n S t a n d a r d t im e , M o n d a y , A p r il 2 , 1 9 8 4 . F o r m P D 4 6 3 2 - 2 (f o r 2 6 -w e e k ser ie s) o r F o r m P D 4 6 3 2 -3 (fo r 1 3 -w e e k s e r ie s) s h o u ld b e u s e d t o s u b m it te n d e r s fo r b ills t o b e m a in t a in e d o n th e b o o k - e n t r y r e c o r d s o f th e D e p a r t m e n t o f th e T r e a s u r y . E a c h te n d e r m u s t s ta te th e p a r a m o u n t o f b ills b id f o r , w h ic h m u s t b e a m in im u m o f $ 1 0 ,0 0 0 . T e n d e r s o v e r $ 1 0 ,0 0 0 m u s t b e in m u lt ip le s o f $ 5 ,0 0 0 . C o m p e t i t iv e te n d e r s m u s t a ls o s h o w th e y ie ld d e s ir e d , e x p r e s s e d o n a b a n k d is c o u n t r a te b a s is w ith t w o d e c im a ls , e . g . , 7 . 1 5 % . F r a c t io n s m a y n o t b e used . B a n k in g in s t it u t io n s a n d d e a le r s w h o m a k e p r im a r y m a r k e ts in G o v e r n m e n t s e c u r itie s a n d r e p o r t d a ily t o th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k th e ir p o s it io n s in a n d b o r r o w in g s o n s u c h s e c u r it ie s m a y s u b m it te n d e r s f o r a c c o u n t o f c u s t o m e r s , i f th e n a m e s o f th e c u s t o m e r s a n d th e a m o u n t f o r e a c h c u s to m e r a r e f u r n is h e d . O th e r s a r e o n ly p e r m it t e d t o s u b m it te n d e r s fo r th e ir o w n a c c o u n t . E a c h te n d e r m u s t s t a t e th e a m o u n t o f a n y n e t lo n g p o s i t i o n in th e b ills b e in g o f f e r e d i f s u c h p o s it io n is in e x c e s s o f $ 2 0 0 m il lio n . T h is i n f o r m a t io n s h o u ld r e f le c t p o s it io n s h e ld a s o f 1 2 :3 0 p . m . , E a s t e r n t im e , o n th e d a y o f t h e a u c t io n . S u c h p o s it io n s w o u ld in c lu d e b ills a c q u ir e d t h r o u g h “ w h e n i s s u e d ” tr a d in g , a n d f u tu r e s a n d fo r w a r d t r a n s a c tio n s a s w e ll a s h o ld in g s o f o u t s t a n d in g b ills w it h th e s a m e m a t u r ity d a te as th e n e w o f f e r i n g , e . g . , b ills w ith th r e e m o n t h s t o m a t u r ity p r e v io u s ly o f f e r e d a s s ix - m o n t h b ills . D e a le r s w h o m a k e p r im a r y m a r k e ts in G o v e r n m e n t s e c u r itie s a n d r e p o r t d a ily t o th e F e d e r a l R e s e r v e B a n k o f N e w Y o r k th e ir p o s it io n s in a n d b o r r o w in g s o n s u c h s e c u r it ie s , w h e n s u b m it t in g t e n d e r s f o r c u s t o m e r s , m u s t s u b m it a s e p a r a t e t e n d e r f o r e a c h c u s t o m e r w h o s e n e t lo n g p o s it io n in th e b ills b e in g o f f e r e d e x c e e d s $ 2 0 0 m il lio n . A n o n c o m p e t it iv e b id d e r m a y n o t h a v e e n t e r e d in t o a n a g r e e m e n t , o r m a y n o t m a k e a n a g r e e m e n t w it h r e s p e c t t o th e p u r c h a s e o r s a le o r o th e r d is p o s it io n o f a n y n o n c o m p e t it iv e a w a r d s o f t h is is s u e in t h is a u c t io n p r io r t o t h e d e s ig n a t e d c lo s i n g t im e f o r r e c e ip t o f te n d e r s . P a y m e n t f o r t h e f u ll p a r a m o u n t o f t h e b ills a p p lie d f o r m u s t a c c o m p a n y a ll t e n d e r s s u b m it t e d f o r b ills t o b e m a in t a in e d o n th e b o o k - e n t r y r e c o r d s o f th e D e p a r t m e n t o f th e T r e a s u r y . A c a s h a d j u s t m e n t w ill b e m a d e o n a ll a c c e p t e d t e n d e r s f o r th e d if f e r e n c e b e t w e e n t h e p a r p a y m e n t s u b m it t e d a n d t h e a c t u a l is s u e p r ic e a s d e t e r m in e d in t h e a u c t io n . N o d e p o s it n e e d a c c o m p a n y t e n d e r s f r o m in c o r p o r a t e d b a n k s a n d tr u s t c o m p a n ie s a n d f r o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s t m e n t s e c u r it ie s f o r b ills t o b e m a in t a in e d o n t h e b o o k - e n t r y r e c o r d s o f F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s . A d e p o s it o f 2 p e r c e n t o f t h e p a r a m o u n t o f th e b ills a p p lie d f o r m u s t a c c o m p a n y t e n d e r s f o r s u c h b ills f r o m o t h e r s , u n le s s a n e x p r e s s g u a r a n t y o f p a y m e n t b y a n in c o r p o r a t e d b a n k o r tr u s t c o m p a n y a c c o m p a n ie s th e te n d e r s . P u b lic a n n o u n c e m e n t w ill b e m a d e b y th e D e p a r t m e n t o f th e T r e a s u r y o f th e a m o u n t a n d y ie ld r a n g e o f a c c e p t e d b id s . C o m p e t i t iv e b id d e r s w ill b e a d v is e d o f t h e a c c e p t a n c e o r r e j e c t io n o f t h e ir te n d e r s . T h e S e c r e ta r y o f th e T r e a s u r y e x p r e s s ly r e s e r v e s t h e r ig h t t o a c c e p t o r r e j e c t a n y o r a ll te n d e r s , in w h o le o r in p a r t, a n d t h e S e c r e t a r y ’s a c t io n s h a ll b e f in a l. S u b j e c t t o t h e s e r e s e r v a t io n s , n o n c o m p e t it iv e t e n d e r s f o r e a c h is s u e fo r $ 1 , 0 0 0 ,0 0 0 o r le s s w it h o u t s t a t e d y ie ld f r o m a n y o n e b id d e r w ill b e a c c e p t e d in f u ll a t t h e w e ig h t e d a v e r a g e b a n k d is c o u n t r a te (in t w o d e c im a ls ) o f a c c e p t e d c o m p e t it iv e b id s f o r t h e r e s p e c t iv e is s u e s . T h e c a lc u la t io n o f p u r c h a s e p r ic e s f o r a c c e p t e d b id s w ill b e c a r r ie d t o th r e e d e c im a l p la c e s o n th e b a s is o f p r ic e p e r h u n d r e d , e . g . , 9 9 . 9 2 3 , a n d th e d e te r m in a t io n s o f th e S e c r e ta r y o f th e T r e a s u r y s h a ll b e f in a l. S e t t le m e n t f o r a c c e p t e d t e n d e r s f o r b ills t o b e m a in t a in e d o n th e b o o k e n tr y r e c o r d s o f F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s m u s t b e m a d e o r c o m p le t e d a t th e F e d e r a l R e s e r v e B a n k o r B r a n c h o n A p r il 5 , 1 9 8 4 , in c a s h o r o t h e r im m e d ia t e ly - a v a ila b le fu n d s o r in T r e a s u r y b ills m a t u r in g A p r il 5 , 1 9 8 4 . C a s h a d j u s t m e n t s w ill b e m a d e f o r d if f e r e n c e s b e t w e e n th e p a r v a lu e o f th e m a t u r in g b ills a c c e p t e d in e x c h a n g e a n d th e is s u e p r ic e o f th e n e w b ills . U n d e r S e c t io n 4 5 4 ( b ) o f t h e I n te r n a l R e v e n u e C o d e , th e a m o u n t o f d is c o u n t a t w h ic h t h e s e b ills a r e s o ld is c o n s id e r e d t o a c c r u e w h e n th e b ills a r e s o ld , r e d e e m e d , o r o t h e r w is e d is p o s e d o f . S e c t io n 1 2 3 2 (a ) (4 ) p r o v id e s t h a t a n y g a in o n th e s a le o r r e d e m p t io n o f t h e s e b ills t h a t d o e s n o t e x c e e d th e r a ta b le s h a r e o f th e a c q u is it i o n d is c o u n t m u s t b e in c lu d e d in th e F e d e r a l in c o m e ta x r e t u r n o f t h e o w n e r a s o r d in a r y in c o m e . T h e a c q u is it io n d is c o u n t is th e e x c e s s o f th e s t a t e d r e d e m p t io n p r ic e o v e r th e t a x p a y e r ’s b a s is ( c o s t ) f o r th e b ill. T h e r a t a b le s h a r e o f th is d is c o u n t is d e t e r m in e d b y m u lt ip ly in g s u c h d is c o u n t b y a f r a c t io n , th e n u m e r a t o r o f w h ic h is th e n u m b e r o f d a y s t h e ta x p a y e r h e ld th e b ill a n d th e d e n o m in a t o r o f w h ic h is th e n u m b e r o f d a y s f r o m t h e d a y f o ll o w i n g th e t a x p a y e r ’s d a t e o f p u r c h a s e t o th e m a t u r it y o f t h e b ill. I f th e g a in o n th e s a le o f a b ill e x c e e d s t h e t a x p a y e r ’s r a ta b le p o r t io n o f th e a c q u is it io n d is c o u n t , th e e x c e s s g a in is t r e a t e d a s s h o r t - t e r m c a p it a l g a in . D e p a r t m e n t o f th e T r e a s u r y C ir c u la r s , P u b lic D e b t S e r ie s — N o s . 2 6 - 7 6 a n d 2 7 - 7 6 , a n d th is n o t ic e , p r e s c r ib e t h e t e r m s o f t h e s e T r e a s u r y b ills a n d g o v e r n th e c o n d it io n s o f th e ir is s u e . C o p ie s o f th e c ir c u la r s a n d te n d e r f o r m s m a y b e o b t a in e d f r o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h , o r f r o m t h e B u r e a u o f t h e P u b lic D e b t . T his B ank will receive tenders fo r b o th series p rio r to 1:©® p.m ., E astern S tan d ard tim e, M onday, A pril 2, 1984, at th e Securities D ep artm en t o f its H e ad O ffice an d at its B uffalo B ranch. T ender form s fo r b o th series are enclosed. Please be sure to use them to subm it tenders an d re tu rn them in the enclosed envelope. F orm s fo r subm itting tenders directly to th e T reasu ry are available fro m th e G overnm ent B ond D ivision o f this B ank. T enders n o t requiring a deposit m ay be su b m itted by telegraph, subject to w ritten co n firm ation; no tenders m ay be subm itted 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 available funds or in Treasury securities maturing on or before the issue date. R esults o f th e last weekly offerin g o f T reasury bills are show n on the reverse side o f this circular. Anthony So l o m o n , M. President. Please mote: Tenders most be received prior to 1;©© p.m. (OVER) ■ * RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SEMES TO BE ISSUED MARCH 299 1984) Mange off Accepted Competitive Bids 91-Day Treasury Bills Maturing June 28, 1984 Low rate........................ ............ High r a t e ....................... ............ Average rate . . . . . . . . . . . . . . . . . 182-Day Treasury Bills Maturing September 27, 1984 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 9.75% 9.77% 9.76% 10.14% 10.16% 10.15% 97.535 97.530 97.533 9.88% 9.89% 9.88% 10.54% 10.56% 10.54% 95.005 95.000 95.005 ‘Equivalent coupon-issue yield. (52 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (45 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted ByF.R. District (andU.S. Treasury) 91-Day Treasury Bills Maturing June 28, 1984 Received 182-Day Treasury Bills Maturing September 27, 1984 Accepted Boston..................................... $ 245,970,000 13,384,275,000 New Y o rk ............................... 27,545,000 Philadelphia......................... . 125,780,000 Cleveland............. ................ 62,145,000 Richmond............................... 43,205,000 Atlanta ................................... 920,850,000 Chicago . . . . . . . . . . . . . . . . . . . 69,460,000 St. Louis ................................. 31,100,000 M inneapolis......... 44,865,000 Kansas C ity............................. 35,445,000 Dallas .................................... 1,649,535,000 San Francisco ......................... $ 45,970,000 4,690,300,000 27,545,000 103,080,000 46,570,000 40,205,000 231,750,000 31,460,000 11,100,000 44,565,000 30,445,000 696,175,000 U.S. Treasury.......................... 204,725,000 T otals ............................ Received $ Accepted 251,425,000 13,814,490,000 19,355,000 61,620,000 60,035,000 65,665,000 792,300,000 70,040,000 32,160,000 52,035,000 28,760,000 1,407,360,000 $ 50,925,000 4,822,335,000 19,355,000 40,620,000 48,085,000 47,050,000 165,150,000 30,025,000 19,410,000 52,035,000 23,760,000 618,010,000 204,725,000 280,125,000 280,125,000 $16,844,900,000 $6,203,890,000 $16,935,370,000 $6,216,885,000 Public Competitive................... . Noncompetitive............. $14,316,925,000 1,078,885,000 $3,675,915,000 1,078,885,000 $14,007,670,000 991,200,000 $3,289,185,000 991,200,000 Subtotals ......... . Federal R eserve..................... Foreign Official Institutions .. $15,395,810,000 1,350,490,000 98,600,000 $4,754,800,000 1,350,490,000 98,600,000 $14,998,870,000 1,260,000,000 676,500,000 $4,280,385,000 1,260,000,000 676,500,000 T otals ............................. $16,844,900,000 $6,203,890,000 $16,935,370,000 $6,216,885,000 Byclassof bidder c
@FedFRASER