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FEDERAL RESERVE BANK OF NEW YORK Fiscal A gent o f the U nited States Circular N o. 9692 __ June 20, 1984 _ OFFERING OF TW O SERIES OF TREASURY F IL L S $5,200,00®,©©© o f 9 1 -B a y B ills, T o B e Is su e d J u n e 28, 1984, B e e S e p te m b e r 27, 1984 $5,20©,©©©,©©© o f 1 8 2 -B a y B ills, T o B e Issu e d J u n e 28, 1984, D u e B e c e m b e r 27, 1984 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: F o llo w in g is th e te x t o f a n o tic e issu e d b y th e T re a s u ry D e p a rtm e n t: The Departm ent o f the Treasury, by this public notice, invites tenders for tw o series o f Treasury bills totaling approxim ately $10,400 m illion, to be issued June 28, 1984. The size of this offering has been reducedfrom recent levels in order to ensure that the current debt ceiling is not exceed ed. This offering will result in a paydow n for the Treasury o f about $2,275 m illion, as the maturing bills are outstanding in the am ount o f $12,680 m illion, including $1,110 m illion currently held by Federal Reserve Banks as agents for foreign and international m onetary authorities and $2,510 m illion currently held by Federal Reserve Banks for their ow n account. The two series offered are as follow s: 91-day bills (to maturity date) for approxim ately $5,200 m illion, representing an additional am ount o f bills dated M arch 29, 1984, and to mature September 27, 1984 (C U SIP N o. 912794 FW 9), currently outstanding in the am ount o f $6,250 m illion, the additional and original bills to be freely interchangeable. 182-day bills (to maturity date) for approximately $5,200 million, representing an additional am ount o f bills dated Decem ber 29, 1983, and to mature Decem ber 27, 1984 (C U SIP N o . 912794 FL3), currently outstanding in the am ount o f $8,272 m illion, the additional and original bills to be freely interchangeable. Both series o f bills will be issued for cash and in exchange for Treasury bills maturing June 28, 1984. Tenders from Federal Reserve Banks for them selves and as agents for foreign and international m onetary authorities will be accepted at the w eighted average bank discount rates o f accepted com petitive tenders. A d ditional am ounts o f the bills m ay be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate am ount o f tenders for such accounts exceeds the aggregate am ount o f maturing bills held by them. The bills will be issued on a discount basis under com petitive and n on com petitive bidding, and at m aturity their par am ount will be payable without interest. Both series o f bills will be issued entirely in book-entry form in a minim 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 . 20239, prior to 1:00 p .m ., Eastern Daylight Saving time, M onday, June 25, 1984. Form PD 4632-2 (for 26-week series) or Form P D 4632-3 (for 13-week series) should be used to subm it tenders for bills to be m aintained on the book-entry records o f the Department o f the Treasury. Each tender must 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 must 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 may not be used. Banking institutions and dealers w ho m ake primary markets in G ov ernm ent securities and report daily to the Federal Reserve Bank o f New York their positions in and borrowings on such securities m ay subm it tenders for account o f custom ers, if the names 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 w ould include bills acquired through “ when issued” trading, and futures and forward transactions as well as holdings o f outstanding bills with the sam e m aturity date as the new offering, e.g ., bills with three m onths to maturity previously offered as six-m onth bills. Dealers w ho make primary markets in Governm 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 agreem ent 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 tim e for receipt o f tenders. P aym 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 D epartm ent o f the Treasury. A cash adjustm ent will be m ade on all accepted tenders for the difference between the par paym ent 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 D epartm ent o f the Treasury o f the am ount and yield range o f accepted bids. C om 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 June 28, 1984, in cash or other im m ediately-available funds or in Treasury bills maturing June 28, 1984. Cash adjustm ents will be m ade for differences between the par value o f the m aturing bills accepted in exchange and the issue price o f the new bills. In addition, Treasury Tax and Loan N ote O ption Depositaries m ay m ake paym ent for allotm ents o f bills for their own accounts and for account o f custom ers by credit to their Treasury Tax and Loan N ote A ccounts on the settlem ent date. 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 o f. 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 must 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 m aturity 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. Departm ent o f the Treasury Circulars, Public D ebt 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. C opies o f the circulars and tender forms m ay be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public D ebt. T his 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, June 25, 1984, at the Securities D epartm ent o f its H ead Office and at its B uffalo B ranch. Tender form s for b oth series are enclosed. Please be sure to use them to subm it tenders and retu rn them in the enclosed envelope. F orm s fo r subm itting tenders directly to the T reasury are available from the G overnm ent B ond D ivision o f this B ank. Tenders n o t requiring a deposit m ay be subm itted by telegraph, subject to w ritten confirm ation; no tenders m ay be subm itted by telephone. Settlem ent m ust be m ade in cash o r o th er im m ediately available funds or in T reasury securities m aturing on or before the issue date. Treasury Tax and Loan N ote Option Depositaries may m ake paym ent f o r Treasury bills by credit to their Treasury Tax and Loan N o te Accounts. R esults o f the last weekly offering o f T reasury bills are show n on the reverse side o f this circular. Anthony M. Solomon , P resident. (OVER) RESULTS OF LAST W EE K LY OFFERING OF TREASURY B ILLS (TW O SERIES TO BE ISSUED JU N E 21, 1984) Mange of A ccepted C om petitive Bids 91-Day Treasury Bills M aturing Septem ber 20, 1984 Low r a t e ............................. ............. H igh r a t e ........................... ............. A verage rate .................... ............. 182-Day Treasury Bills M aturing December 20, 1984 Discount Rate Investment Ratex Price Discount Rate Investment Rate1 Price 10.00% a 10.01% 10.01% 10.40% 10.41% 10.41% 97.472 97.470 97.470 10.49% b 10.50% 10.49% 11.23% 11.24% 11.23% 94.697 94.692 94.697 'Equivalent coupon-issue yield. ^Excepting one tender o f $1,000,000. bExcepting one tender o f $470,000. (86 percent o f the am o u n t o f 91-day bills bid fo r at the high discount rate was accepted.) (82 percent o f the am o u n t o f 182-day bills bid fo r at the high discount rate was accepted.) T otal T enders Received and A ccepted 182-Day Treasury Bills M aturing December 20, 1984 91-Day Treasury Bills M aturing Septem ber 20, 1984 By F.R. District (and U.S. Treasury) B o s to n .......................................... New Y o r k ................................. . P h ila d e lp h ia ............................... C leveland ................................... 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 p o lis ............................. . K ansas C i ty ................................. D allas .......................................... San F r a n c is c o ............................. Received $ 249,220,000 20,173,655,000 40.790.000 81.690.000 65.975.000 56.755.000 1.495.475.000 40.080.000 84.940.000 50.605.000 23.400.000 1.508.360.000 Accepted $ 43,720,000 5,667,505,000 40.090.000 45,000,000 55.975.000 46.755.000 88.175.000 22.980.000 12.400.000 47.105.000 23.400.000 79.340.000 Received $ 158,975,000 15,729,220,000 26.510.000 57.145.000 51.335.000 48.800.000 1.183.825.000 45.300.000 32.490.000 49.675.000 29.530.000 1.353.875.000 Accepted $ 46,975,000 5,648,760,000 26.510.000 51.355.000 46.130.000 45.900.000 101,790,000 29.300.000 28.590.000 49.175.000 29.530.000 76.465.000 U .S . T r e a s u r y ............................ 251,400,000 251,400,000 222,180,000 222,180,000 T o t a l s .............................. $24,122,345,000 $6,423,845,000 $18,988,860,000 $6,402,660,000 P ublic C o m p e titiv e ...................... , $21,122,485,000 1,102,505,000 N o n c o m p e titiv e ............... $3,423,985,000 1,102,505,000 $15,863,355,000 905,505,000 $3,277,155,000 905,505,000 S u b to ta ls ...................... F ederal R e s e r v e ........................ F oreign O fficial In stitu tio n s .. $22,224,990,000 1,766,555,000 130,800,000 $4,526,490,000 1,766,555,000 130,800,000 $16,768,860,000 1,650,000,000 570,000,000 $4,182,660,000 1,650,000,000 570,000,000 T o t a l s ............................. $24,122,345,000 $6,423,845,000 $18,988,860,000 $6,402,660,000 By class of bidder
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