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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 8 5
M a y 30, 1984
O FFERING OF TW O SERIES OF TREASURY B ILLS
$6,400,000,000 of 91-Bay Bills, To Be Issued June 7, 1984, Due September 6, 1984
$6,400,000,000 of 182-Bay Bills, To Be Issued June 7, 1984, Due Becember 6, 1984
To A ll Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:
Following is the text o f 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 t e ly $ 1 2 ,8 0 0 m il lio n , t o
b e is s u e d J u n e 7 , 1 9 8 4 . T h is o f f e r in g w ill p r o v id e $ 2 2 5 m il lio n o f n e w
c a s h fo r th e T r e a s u r y , a s t h e m a t u r in g b ills a r e o u t s t a n d in g in t h e a m o u n t
o f $ 1 2 ,5 7 1 m il lio n , in c lu d in g $ 8 5 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 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 a n d $ 3 ,1 5 0 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 ,4 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 S e p t e m b e r 8 ,
1 9 8 3 , a n d t o m a tu r e S e p t e m b e r 6 , 1 9 8 4 ( C U S I P N o . 9 1 2 7 9 4
F G 4 ), 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 $ 1 4 ,0 1 1 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 t e ly $ 6 ,4 0 0 m il lio n , t o b e d a t e d
J u n e 7 , 19 8 4 , a n d to m a tu re D e ce m b er 6 , 1984 (C U S I P N o .
9 1 2 7 9 4 G D 0 ).
B o t h s e r ie s o f b ills w ill b e is s u e d fo 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 J u n e 7 , 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
th 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 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 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 th o r itie s , t o th e e x te n t th a t th e a g g r e g a te 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 te a m o u n t o f m a tu 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 tm 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 D a y lig h t S a v in g t im e , M o n d a y , J u n e 4 , 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 e r ie s ) o r F o r m P D 4 6 3 2 -3 ( f o 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 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 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 ay n o t be 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 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 itie s m a y s u b m it
t e n d e r s fo 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 to 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 t o m e r a r e fu 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 ta te 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 t im 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 ” t r a d in g , a n d f u tu r e s
a n d fo r w a r d tr a n s a c t io 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 t e a s t h 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 ittin g te n d e r s fo 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 fo r
e a c h c u s to m e r w h o s e n e t l o n g p o s i t i o n in t h 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 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 t h is a u c t io n
p r io r t o th 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 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 t h e D e p a r t m e n t o f t h 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 t h 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 te 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 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 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 t h e t e n d e r s .
P{ublic 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 t h 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 th e ir t e n d e r s . T h e S e c r e ta r y
o f t h 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 te n d e r s f o r e a c h is s u e f o 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 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 t h 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 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 te n d e r 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 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 J u n e 7 , 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 f u n d s o r in T r e a s u r y b ills m a t u r in g J u n e 7 ,
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 t h e p a r
v a lu e o f t h 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 a d d it io n , T r e a s u r y T a x a n d L o a n N o t e O p t io n D e p o s i t a r ie s
m a y m a k e p a y m e n t f o r a llo t m e n t s o f b ills f o r th e ir o w n a c c o u n t s a n d fo r
a c c o u n t o f c u s t o m e r s b y c r e d it t o th e ir T r e a s u r y T a x a n d L o a n N o t e
A c c o u n t s o n th e s e t t le m e n t d a t e .
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 , t h 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 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 t a b le s h a r e o f t h 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 t a x r e tu 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 i o n d is c o u n t is t h e e x c e s s o f t h 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 t h is d is c o u n t is
d e te 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 , t h 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 th e ta x p a y e r h e ld t h 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 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 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 th 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 t h is n o t ic e , p r e s c r ib e th e te 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 t h 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
t e 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 .
This Bank will receive tenders for both series prior to 1:00 p.m ., Eastern Daylight Saving time, M onday, June 4,
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. Form s 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 confirm ation; no tenders may be subm itted 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 o te Option Depositaries m ay m ake paym ent fo r Treasury bills by credit to their Treasury Tax
and Loan N o te Accounts.
Results o f the last weekly offering of Treasury bills are shown on the reverse side o f this circular.
Anthony M . Solomon,
P r e s id e n t.
(OVER)
RESULTS OF LA S T W E E K LY O FFERING OF TREASURY B ILLS
(TW O SERIES TO BE ISSUED M A Y 31, 1984)
Range of Accepted Competitive Bids
91-Day Treasury Bills
M aturing A u g u st 30, 1984
D iscount
R ate
Low r a te ............................ .............
High r a t e .......................... .............
Average rate ................... .............
9.81% a
9.84%
9.83%
182-Day Treasury Bills
M aturing N ovem ber 29, 1984
Investm ent
R a te 1
Price
D iscount
R ate
Investm ent
R ate 1
Price
10.20%
10.23%
10.22%
97.520
97.513
97.515
10.57%
10.65%
10.62%
11.32%
11.41%
11.38%
94.656
94.616
94.631
'E q u iv a le n t c o u p o n - is s u e y ie ld .
E x c e p t i n g t w o te n d e r s to t a lin g $ 2 ,4 3 0 ,0 0 0 .
(97 percent o f the am ount o f 182-day bills bid
for at the high discount rate was accepted.)
(68 percent of the am ount of 91-day bills bid
for at the high discount rate was accepted.)
Total Tenders Received and Accepted
91-Day Treasury Bills
M aturing A u g u st 30, 1984
R eceived
By F .R . D istrict (and U.S. Treasury)
182-Day Treasury Bills
M aturing N ovem ber 29, 1984
A ccepted
R eceived
$ 62,735,000
4,903,680,000
19,865,000
37,320,000
44,085,000
44,110,000
250,880,000
36,330,000
15,690,000
48,985,000
17,480,000
576,145,000
222,450,000
246,455,000
246,455,000
$17,357,820,000
$6,301,795,000
$14,786,060,000
$6,303,760,000
$14,743,550,000
1,062,385,000
$3,687,525,000
1,062,385,000
$12,151,180,000
895,280,000
$3,668,880,000
895,280,000
Federal R e s e rv e .......................
Foreign Official Institutions ..
$15,805,935,000
1,211,085,000
340,800,000
$4,749,910,000
1,211,085,000
340,800,000
$13,046,460,000
1,175,000,000
564,600,000
$4,564,160,000
1,175,000,000
564,600,000
T o t a l s .................................
$17,357,820,000
$6,301,795,000
$14,786,060,000
$6,303,760,000
$
$ 37,950,000
4,558,560,000
31,160,000
49,990,000
51,260,000
52,845,000
109,300,000
25,675,000
14,615,000
33,920,000
31,150,000
1,082,920,000
U.S. T re a su ry ............................
222,450,000
T o t a l s .................................
$
A ccepted
152,735,000
12,137,780,000
19,865,000
37,320,000
44,085,000
44,110,000
1,068,690,000
41,420,000
15,690,000
48,985,000
27,480,000
901,445,000
238,365,000
14,020,185,000
31,190,000
50,325,000
51,260,000
55,105,000
897,140,000
33,875,000
14,615,000
33,920,000
41,150,000
1,668,240,000
B o s to n .........................................
New Y o r k ..................................
P h ila d e lp h ia ..............................
C le v e la n d ..................................
R ic h m o n d ..................................
A t l a n t a ......................................
C h icag o ......................................
St. L o u is ....................................
M in n e a p o lis..............................
Kansas C ity ................................
Dallas .........................................
San F ra n c isc o ............................
B y class o f bidder
Public
C o m p e titiv e .....................
N o n com petitive...............
S u btotals .........................
@FedFRASER