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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States C ir c u la r N o . 9 6 6 9 A p r il 1 1 , 1 9 8 4 OFFERING OF TW O SERIES OF TREASURY B ILLS $6,000,000,000 of 91-Day Bills, To Be Issued April 19, 1904, Due July 19, 1984 $6,000,000,000 of 182-Day Bills, To Be Issued April 19, 1984, Due October 18, 1984 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: >Y 1r v ■- y U y Following is the text of a notice issued by the Treasury Department: 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 te ly $ 1 2 ,0 0 0 m il lio n , t o b e is s u e d A p r il 1 9 , 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 illio n , a s th e m a tu r in g b ills w e r e o r ig in a lly is s u e d in th e a m o u n t o f $ 1 2 ,4 6 3 m illio n . T h e t w o s e r ie s o f f e r e d a r e as f o ll o w s : 9 1 -d a y b ills ( t o m a t u 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 J a n u a r y 19, 1 9 8 4 , a n d t o m a tu r e J u ly 19, 1 9 8 4 (C U S I P N o . 9 1 2 7 9 4 F N 9 ) , 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 $ 6 ,4 2 9 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 fo r a p p r o x im a te ly $ 6 ,0 0 0 m il lio n , t o b e d a t e d A p r il 19, 1 9 8 4 , a n d t o m a tu r e O c to b e r 1 8 , 1 9 8 4 ( C U S I P N o . 9 1 2 7 9 4 F Y 5 ). 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 1 9 , 1 9 8 4 . In a d d it io n t o th e m a t u r in g 1 3 -w e e k a n d 2 6 - w e e k b ills , th e r e a r e $ 7 ,7 6 4 m il lio n o f m a t u r in g 5 2 -w e e k b ills . T h e d is p o s it io n o f th is la tte r a m o u n t w a s a n n o u n c e d la s t w e e k . 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 , c u r r e n tly h o ld $ 1 ,4 7 9 m il lio n , a n d F e d e r a l R e s e r v e B a n k s fo r th e ir o w n a c c o u n t h o ld $ 3 ,0 5 2 m il lio n o f th e m a t u r in g b ills . T h e s e a m o u n t s r e p r e s e n t th e c o m b in e d h o ld in g s o f s u c h a c c o u n ts f o r th e th re e is s u e s o f m a t u r in g b ills . 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 fo r th e m s e lv e s a n d a s a g e n t s 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 te 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 f o 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 itie s , t o th e e x te n t t h 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 ts 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 . F o r p u r p o s e s o f d e t e r m in in g s u c h a d d it io n a l a m o u n t s , 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 itie s a r e c o n s id e r e d t o h o ld $ 1 ,4 2 9 m illio n o f th e o r ig in a l 1 3 -w e e k a n d 2 6 - w e e k is s u e s . 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 3 9 , p r io r t o 1 :0 0 p . m . , E a s t e r n S ta n d a r d tim e , M o n d a y , A p r il 16, 1 9 8 4 . F o r m P D 4 6 3 2 - 2 (f o r 2 6 -w e e k s er ie s) o r F o r m P D 4 6 3 2 -3 (f o r 1 3 -w e e k ser ie s) s h o u ld b e u se 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 ta 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 tm e n t o f t h 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 fo 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 tio n s m a y n o t b e u sed . 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 itie s m a y s u b m it t e n d e r s f o r a c c o u n t o f c u s to m e r s , i f th e n a m e s o f th e c u s to m e r s a n d th e a m o u n t fo 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 itt 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 ta 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 as o f 1 2 :3 0 p . m . , E a s t e r n tim e , o n th e d a y o f th 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 is s u e d ” tr a d in g , a n d fu 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 ith 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 in 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 as 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 t h 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 te 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 te n d e r fo 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 illio 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 te 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 th 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 in g tim 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 th e f u ll 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 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 th e p a r p a y m e n t s u b m it t e d a n d th e a c t u a l is s u e p r ic e a s d e te 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 itie 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 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 th 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 te 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 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 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 it iv e b id d e r s w ill b e a d v is e d o f th e a c c e p t a n c e o r r e j e c t io n o f th e ir t e 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 th 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 th 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 te 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 th e r e s p e c tiv 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 t e r m in a t io n s o f t h e S e c r e ta r y o f t h 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 t h 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 1 9 , 1 9 8 4 , in c a s h o r o th 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 1 9 , 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 . In addition, Treasury Tax and Loan Note Option Depositaries may make payment for allotments of bills for their own accounts and for account of customers by credit to their Treasury Tax and Loan Note Accounts on the settlement date. U n d e r S e c t io n 4 5 4 ( b ) o f th 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 th a t a n y g a in o n t h 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 io 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 tu r n o f th 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 t h e b ill. T h e r a ta 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 t h e n u m b e r o f d a y s th e t a 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 t h e n u m b e r o f d a y s f r o m th 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 ity o f th 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 tr e a te 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 fo 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 th e B u r e a u o f th e P u b lic D e b t . This Bank will receive tenders for both series prior to 1:00 p.m ., Eastern Standard time, M onday, April 16, 1984, at the Securities Departm ent o f its Head Office and at its Buffalo Branch. Revised tender forms for both series are en closed. 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 o f this Bank. Tenders not requiring a deposit may be submitted by telegraph, subject to written confirmation; no tenders may be submitted by telephone. Settlement must be made in cash or other immediately available funds or in Treasury securities m aturing on or before the issue date. Treasury Tax and Loan N ote Option Depositaries m ay m ake paym ent fo r Treasury bills by credit to their Treasury Tax and Loan N ote Accounts, Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. A n t h o n y M . S o l o m o n , P resident. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED APRIL 12, 1984) Mange off Accepted Competitive Bids 91-Day Treasury Bills M aturing July 12, 1984 Low rate......................... ........... High r a t e ....................... ........... Average rate ................. ........... 182-Day Treasury Bills M aturing October 11, 1984 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 9.65% 9.66% 9.66% 10.03% 10.04% 10.04% 97.561 97.558 97.558 9.80% 9.82% 9.82% 10.45% 10.48% 10.48% 95.046 95.035 95.035 -i ‘Equivalent coupon-issue yield. (95 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) (51 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) - Total Tenders Received and Accepted 182-Day Treasury Bills M aturing October 11, 1984 91-Day Treasury Bills M aturing July 12, 1984 B y F .R . D is tr ic t (a n d U .S . T rea su ry) B o s t o n ............................................. N ew Y o r k ...................................... P h i l a d e l p h i a ................................. C l e v e l a n d ...................................... R ic h m o n d ...................................... A t l a n t a ........................................... C h ic a g o ........................................... St. L o u i s ......................................... M i n n e a p o l i s ................................. K an sas C i t y .................................... D a lla s ............................................. S an F r a n c i s c o ............................... 2 5 1 ,32 0 ,0 0 0 18,158,590,000 2 7 ,5 3 5 ,0 0 0 80,00 5 ,0 0 0 51,83 0 ,0 0 0 61,25 5 ,0 0 0 1,340,060,000 65,03 5 ,0 0 0 2 4 ,6 0 0 ,0 0 0 57,26 0 ,0 0 0 39,56 0 ,0 0 0 1,159,740,000 R e c e iv e d A c c e p te d R e c e iv e d $ $ 4 8 ,8 2 0 ,0 0 0 5 ,1 7 3 ,5 4 5 ,0 0 0 2 7 ,5 3 5 ,0 0 0 4 8 ,0 0 5 ,0 0 0 4 6 ,8 3 0 ,0 0 0 52,85 5 ,0 0 0 119,210,000 4 4 ,0 3 5 ,0 0 0 12,600,000 5 5 ,2 6 0 ,0 0 0 2 9 ,5 6 0 ,0 0 0 7 5 ,7 4 0 ,0 0 0 $ 161,295,000 13 ,5 2 7 ,4 0 5 ,0 0 0 2 6 ,7 9 0 ,0 0 0 7 0 ,6 9 5 ,0 0 0 102,495,000 6 6 ,3 8 0 ,0 0 0 1 ,2 1 7 ,5 0 5 ,0 0 0 5 2 ,5 3 5 ,0 0 0 2 8 ,2 3 5 ,0 0 0 5 6 ,5 1 0 ,0 0 0 2 5 ,8 8 5 ,0 0 0 1 ,1 9 8 ,4 7 5 ,0 0 0 A c c e p te d $ 5 1 ,2 9 5 ,0 0 0 4 ,7 7 6 ,3 4 5 ,0 0 0 2 6 ,7 9 0 ,0 0 0 5 0 ,3 8 0 ,0 0 0 5 3 ,1 4 5 ,0 0 0 5 2 ,3 8 0 ,0 0 0 190,905,000 3 1 ,5 3 5 ,0 0 0 1 6,235,000 5 6 ,5 0 0 ,0 0 0 2 0 ,8 8 5 ,0 0 0 2 7 4 ,2 8 0 ,0 0 0 U .S . T r e a s u r y ............................... 311,13 0 ,0 0 0 311,13 0 ,0 0 0 4 0 2 ,1 5 5 ,0 0 0 4 0 2 ,1 5 5 ,0 0 0 T o t a l s ............................... $21,627,92 0 ,0 0 0 $ 6 ,0 4 5 ,1 2 5 ,0 0 0 $ 1 6 ,9 3 6 ,3 6 0 ,0 0 0 $ 6 ,0 0 2 ,8 3 0 ,0 0 0 P u b lic C o m p e t i t i v e ........................ N o n c o m p e titiv e ................. $ 1 8,866,60 0 ,0 0 0 1,235,085,000 $ 3 ,2 8 3 ,8 0 5 ,0 0 0 1 ,2 35,085,000 $ 1 3 ,6 5 9 ,3 1 5 ,0 0 0 1,16 3 ,1 4 5 ,0 0 0 $ 2 ,7 2 5 ,7 8 5 ,0 0 0 1 ,1 6 3 ,1 4 5 ,0 0 0 S ubtotals ........................ F e d e ra l R e s e r v e .......................... F o re ig n O ffic ia l In stitu tio n s . . $20,101,68 5 ,0 0 0 1,521,235,000 5,00 0 ,0 0 0 $ 4 ,5 1 8 ,8 9 0 ,0 0 0 1,52 1 ,2 3 5 ,0 0 0 5 ,0 0 0 ,0 0 0 $ 1 4 ,8 2 2 ,4 6 0 ,0 0 0 1 ,4 0 0 ,0 0 0 ,0 0 0 7 1 3 ,9 0 0 ,0 0 0 $ 3 ,8 8 8 ,9 3 0 ,0 0 0 1 ,4 0 0 ,0 0 0 ,0 0 0 7 1 3 ,9 0 0 ,0 0 0 T o t a l s ................................. $21,627,92 0 ,0 0 0 $ 6 ,0 4 5 ,1 2 5 ,0 0 0 $ 1 6 ,9 3 6 ,3 6 0 ,0 0 0 $ 6 ,0 0 2 ,8 3 0 ,0 0 0 A 4 < -4 -*\ M. B y c la ss o f b id d e r * A, rs,