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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9688 June 13, 1984 OFFERING OF TWO SERIES OF TREASURY BILLS $6,41(D)©9(D)(D)(D)9®0® off 91-Dsiy Bills, To Be Issued June 21, 1984, Due September 2®, 1984 $6,40®,®®®,®®® off 182-Day Bills, To Be Issued Dime 21, 1984, Due December 2®, 1984 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $12,800 million, to be issued June 21, 1984. This offering will result in a paydown for the Treasury of about $8,875 million, as the maturing issues total $21,666 million (including the 22-day cash management bills issued May 30, 1984, in the amount of $6,001 million and the 17-day cash management bills issued June 4, 1984, in the amount of $3,009 million). The $12,656 million of regular maturities includes $1,802 million cur rently held by Federal Reserve Banks as agents for foreign and interna tional monetary authorities and $3,417 million currently held by Federal Reserve Banks for their own account. The two series offered are as follows: 91-day bills (to maturity date) for approximately $6,400 million, representing an additional amount of bills dated March 22, 1984, and to mature September 20, 1984 (CUSIP No. 912794 FV1), currently outstanding in the amount of $6,247 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $6,400 million, to be dated June 21, 1984, and to mature December 20, 1984 (CUSIP No. 912794 GF5). Both series of bills will be issued for cash and in exchange for Treasury bills maturing June 21, 1984. Tenders from Federal Reserve Banks for themselves and as agents for foreign and international monetary authorities will be accepted at the weighted average bank discount rates of accepted competitive tenders. Additional amounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount of maturing bills held by them. The bills will be issued on a discount basis under competitive and non competitive bidding, and at maturity their par amount will be payable without interest. Both series of bills will be issued entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000 multiple, on the records either of the Federal Reserve Banks and Branches, or of the Department of the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 p.m., Eastern Daylight Saving time, Monday, June 18, 1984. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series) should be used to submit tenders for bills to be maintained on the book-entry records of the Department of the Treasury. Each tender must state the par amount of bills bid for, which must be a minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. Competitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decimals, e.g., 7.15%. Fractions may not be used. Banking institutions and dealers who make primary markets in Gov ernment securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such securities may submit tenders for account of customers, if the names of the customers and the amount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state the amount of any net long position in the bills being offered if such position is in excess of $200 million. This information should reflect positions held as of 12:30 p.m., Eastern time, on the day of the auction. Such positions would include bills acquired through “ when issued” trading, and futures and forward transactions as well as holdings of outstanding bills with the same maturity date as the new offering, e.g., bills with three months to maturity previously offered as six-month bills. Dealers who make primary markets in Government securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such securities, when submitting tenders for customers, must submit a separate tender for each customer whose net long position in the bills being offered exceeds $200 million. A noncompetitive bidder may not have entered into an agreement, or may not make an agreement with respect to the purchase or sale or other disposition of any noncompetitive awards of this issue in this auction prior to the designated closing time for receipt of tenders. Payment for the full par amount of the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records of the Department of the Treasury. A cash adjustment will be made on all accepted tenders for the difference between the par payment submitted and the actual issue price as determined in the auction. No deposit need accompany tenders from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities for bills to be maintained on the book-entry records of Federal Reserve Banks and Branches. A deposit of 2 percent of the par amount of the bills applied for must accompany tenders for such bills from others, unless an express guaranty of payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department of the Treasury of the amount and yield range of accepted bids. Competitive bidders will be advised of the acceptance or rejection of their tenders. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and the Secretary’s action shall be final. Sub ject to these reservations, noncompetitive tenders for each issue for $1,000,000 or less without stated yield from any one bidder will be accepted in full at the weighted average bank discount rate (in two decimals) of accepted competitive bids for the respective issues. The calculation of purchase prices for accepted bids will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookentry records of Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on June 21, 1984, in cash or other immediately-available funds or in Treasury bills maturing June 21, 1984. Cash adjustments will be made for differences between the par value of the maturing bills accepted in exchange and the issue price of the new bills. 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. Under Section 454(b) of the Internal Revenue Code, the amount of discount at which these bills are sold is considered to accrue when the bills are sold, redeemed, or otherwise disposed of. Section 1232(a)(4) provides that any gain on the sale or redemption of these bills that does not exceed the ratable share of the acquisition discount must be included in the Federal income tax return of the owner as ordinary income. The acquisition discount is the excess of the stated redemption price over the taxpayer’s basis (cost) for the bill. The ratable share of this discount is determined by multiplying such discount by a fraction, the numerator of which is the number of days the taxpayer held the bill and the denominator of which is the number of days from the day following the taxpayer’s date of purchase to the maturity of the bill. If the gain on the sale of a bill exceeds the taxpayer’s ratable portion of the acquisition discount, the excess gain is treated as short-term capital gain. Department of the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, and this notice, prescribe the terms of these Treasury bills and govern the conditions of their issue. Copies of the circulars and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt. This B ank will receive tenders fo r b o th series p rio r to 1:00 p .m ., E astern D aylight Saving tim e, M onday, Ju n e 18, 1984, at the Securities D epartm ent o f its H ead O ffice and at its B uffalo Branch. T ender form s for both series are enclosed. Please be sure to use them to subm it tenders an d retu rn them in the enclosed envelope. Form s for subm itting tenders directly to th e T reasu ry are available from the G overnm ent B ond D ivision o f this B ank. Tenders n ot requiring a deposit m ay be su b m itted by telegraph, subject to w ritten confirm ation; no tenders m ay be subm itted by telephone. Settlem ent m ust be m ad e in cash o r o th er im m ediately available funds or in T reasury securities m atu rin g on or before the issue date. Treasury T ax a n d L o a n N o te O ption D epositaries m ay m a ke p a y m e n t f o r Treasury bills b y credit to their Treasury Tax a n d L o a n N o te A cc o u n ts. R esults o f th e last weekly offering o f T reasury bills are show n on the reverse side o f this circular. A n tho ny M. So l o m o n , President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED TONE M, 1984) Mange off Accepted Competitive Eid§ 91-D ay Treasury Bills M aturing S eptem ber 13, 1984 Low r a t e ............................. ............. H igh r a t e ........................... ............. A verage ra te .................... ............. 182-Day Treasury Bills M a tu rin g D ecem ber 13, 1984 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 10.03% 10.09% 10.07% 10.43% 10.50% 10.47% 97.465 97.449 97.455 10.63% 10.67% 10.66% 11.39% 11.43% 11.42% 94.626 94.606 94.611 'Equivalent coupon-issue yield. (78 p ercen t o f the am o u n t o f 91-day bills bid fo r at th e high discount rate was accepted.) (53 percent o f the am o u n t o f 182-day bills bid fo r at the high discount rate was accepted.) Total Tenders Received and Accepted 91-D ay Treasury Bills M a turing S eptem ber 13, 1984 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 tla n ta ............................................ C h ic a g o ........................ .. St. L o u i s ......................................... M in n e a o o lis .................................. K an sas C i t y .................................... D allas .............................................. S an F r a n c i s c o ........................ A c c e p te d R e c e iv e d B y F .R . D is tr ic t (a n d U .S . T rea su ry) $ 247,9 3 0 ,0 0 0 12,340 ,3 9 5 ,0 0 0 3 4 ,4 2 5 ,0 0 0 120,105,000 5 8 ,4 2 0 ,0 0 0 4 9 ,3 7 0 ,0 0 0 1 ,1 4 5 ,4 2 0 ,0 0 0 2 9 ,4 9 0 ,0 0 0 12,135,000 5 0 ,8 4 5 ,0 0 0 3 9 ,5 3 0 ,0 0 0 697 ,6 9 5 ,0 0 0 182-Day Treasury Bills M atu rin g D ecem ber 13, 1984 $ 6 2 ,930,000 4 ,9 1 3 ,7 9 5 ,0 0 0 3 4 ,4 2 5 ,0 0 0 117,905,000 5 8 ,4 2 0 ,0 0 0 4 9 ,3 0 5 ,0 0 0 2 2 3 ,2 2 0 ,0 0 0 2 5 ,0 5 0 ,0 0 0 12,135,000 5 0 ,8 4 5 ,0 0 0 3 8 ,4 3 0 ,0 0 0 53 8 ,0 3 5 ,0 0 0 R e c e iv e d $ 2 0 4 ,0 2 5 ,0 0 0 1 5 ,0 5 5 ,9 5 5 ,0 0 0 2 7 ,8 3 5 ,0 0 0 9 2 ,3 1 0 ,0 0 0 142,080,000 6 5 ,6 2 0 ,0 0 0 1 ,2 0 5 ,8 4 5 ,0 0 0 4 1 ,9 3 0 ,0 0 0 18,570,000 7 0 ,8 7 0 ,0 0 0 2 9 ,6 2 5 ,0 0 0 81 8 ,5 5 0 ,0 0 0 A c c e p te d $ 5 4 ,0 2 5 ,0 0 0 5 ,2 0 4 ,0 5 5 ,0 0 0 2 7 ,8 3 5 ,0 0 0 6 7 ,6 1 0 ,0 0 0 7 5 ,8 6 0 ,0 0 0 5 9 ,6 8 0 ,0 0 0 2 4 9 ,2 5 5 ,0 0 0 3 3 ,8 3 5 ,0 0 0 1 8,100,000 6 5 ,2 9 0 ,0 0 0 2 4 ,6 2 5 ,0 0 0 2 6 5 ,6 8 0 ,0 0 0 U .S . T r e a s u r y ............................... 28 6 ,4 3 5 ,0 0 0 2 8 6 ,4 3 5 ,0 0 0 2 5 9 ,5 4 0 ,0 0 0 2 5 9 ,5 4 0 ,0 0 0 T otals ................................ $ 1 5,112,195,000 $6 ,4 1 0 ,9 3 0 ,0 0 0 $ 1 8 ,0 3 2 ,7 5 5 ,0 0 0 $ 6 ,4 0 5 ,3 9 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 ............ .. . $12,227 ,0 1 0 ,0 0 0 1,114 ,9 5 5 ,0 0 0 $ 3 ,5 2 5 ,7 4 5 ,0 0 0 1 ,1 1 4 ,9 5 5 ,0 0 0 $ 1 4 ,9 9 9 ,5 3 0 ,0 0 0 1 ,0 4 3 ,1 2 5 ,0 0 0 $ 3 ,3 7 2 ,1 6 5 ,0 0 0 1 ,0 4 3 ,1 2 5 ,0 0 0 B y cla ss o f b id d e r S ubtotals ........................ $ 1 3,341 ,9 6 5 ,0 0 0 $ 4 ,6 4 0 ,7 0 0 ,0 0 0 F ederal R e s e r v e ......................... F oreign O fficial In stitu tio n s . . 1,718,030,000 52,200,000 1,718,030,000 52,200,000 $16,042,655,000 1,600,000,000 390,100,000 $4,415,290,000 1,600,000,000 390,100,000 T o t a l s ................................. $15,112,195,000 $6,410,930,000 $18,032,755,000 $6,405,390,000
@FedFRASER