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FEDERAL RESERVE BANK OF NEW YORK F iscal A gen t o f the U n ited States E Circular No. 9736 ptember 26, 1984 OFFERING OF TWO SERIES OF TREASURY BILLS $6,000,000,000 of 91-Day Bills, To Be Issued October 4, 1984, Due January 3, 1985 $6,000,000,000 of 182-Day Bills, To Be Issued October 4, 1984, Due April 4, 1985 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: Eastern time, on the day of the auction. Such positions would include bills acquired through “when issued” trading, and futures and forward transac tions 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 Govern ment securities and report daily to the Federal Reserve Bank of New York current projections indicate that unless Congress takes action on the debt their positions in and borrowings on such securities, when submitting limit, there will be insufficient debt capacity to roll over the entire amount tenders for customers, must submit a separate tender for each customer o f weekly bills. The two series offered are as follows: 91-day bills (to maturity date) for approximately $6,000 million, whose net long position in the bills being offered exceeds $200 million. A noncompetitive bidder may not have entered into an agreement, nor representing an additional amount of bills dated July 5, 1984, and to mature January 3, 1985 (CUSIP No. 912794 GN8), cur make an agreement to purchase or sell or otherwise dispose of any non rently outstanding in the amount of $6,479 million, the competitive awards of this issue being auctioned prior to the designated additional and original bills to be freely interchangeable. closing time for receipt of tenders. 182-day bills for approximately $6,000 million, to be dated Payment for the full par amount of the bills applied for must accom October 4, 1984, and to mature April 4, 1985 (CUSIP No. pany all tenders submitted for bills to be maintained on the book-entry 912794 GY4). records of the Department of the Treasury. A cash adjustment will be Both series of bills will be issued for cash and in exchange for Treasury made on all accepted tenders for the difference between the par payment bills maturing October 4, 1984. In addition to the maturing 13-week and submitted and the actual issue price as determined in the auction. 26-week bills, there are $7,767 million of maturing 52-week bills. The No deposit need accompany tenders from incorporated banks and disposition of this latter amount was announced last week. Federal trust companies and from responsible and recognized dealers in invest Reserve Banks, as agents for foreign and international monetary ment securities for bills to be maintained on the book-entry records of authorities, currently hold $1,394 million, and Federal Reserve Banks for Federal Reserve Banks and Branches. A deposit of 2 percent of the par their own account hold $4,851 million of the maturing bills. These amount of the bills applied for must accompany tenders for such bills amounts represent the combined holdings of such accounts for the three from others, unless an express guaranty of payment by an incorporated issues of maturing bills. bank or trust company accompanies the tenders. Tenders from Federal Reserve Banks for themselves and as agents for Public announcement will be made by the Department of the Treasury foreign and international monetary authorities will be accepted at the of the amount and yield range of accepted bids. Competitive bidders will weighted average bank discount rates of accepted competitive tenders. be advised of the acceptance or rejection of their tenders. The Secretary Additional amounts of the bills may be issued to Federal Reserve Banks, of the Treasury expressly reserves the right to accept or reject any or all as agents for foreign and international monetary authorities, to the extent tenders, in whole or in part, and the Secretary’s action shall be final. Sub that the aggregate amount of tenders for such accounts exceeds the ject to these reservations, noncompetitive tenders for each issue for aggregate amount of maturing bills held by them. For purposes of deter $1,000,000 or less without stated yield from any one bidder will be ac mining such additional amounts, foreign and international monetary cepted in full at the weighted average bank discount rate (in two decimals) authorities are considered to hold $1,234 million of the original 13-week of accepted competitive bids for the respective issues. The calculation of purchase prices for accepted bids will be carried to three decimal places on and 26-week issues. The bills will be issued on a discount basis under competitive and non the basis of price per hundred, e.g., 99.923, and the determinations of the competitive bidding, and at maturity their par amount will be payable Secretary of the Treasury shall be final. without interest. Both series of bills will be issued entirely in book-entry Settlement for accepted tenders for bills to be maintained on the bookform in a minimum amount of $10,000 and in any higher $5,000 multiple, entry records of Federal Reserve Banks and Branches must be made or on the records either of the Federal Reserve Banks and Branches, or of completed at the Federal Reserve Bank or Branch on October 4, 1984, in the Department of the Treasury. cash or other immediately-available funds or in Treasury bills maturing Tenders will be received at Federal Reserve Banks and Branches and at October 4, 1984. Cash adjustments will be made for differences between the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 the par value of the maturing bills accepted in exchange and the issue p.m., Eastern Daylight Saving time, Monday, October 1, 1984. Form PD price of the new bills. In addition, Treasury Tax and Loan Note Option 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series) should Depositaries may make payment for allotments of bills for their own be used to submit tenders for bills to be maintained on the book-entry accounts and for account of customers by credit to their Treasury Tax records of the Department of the Treasury. and Loan Note Accounts on the settlement date. Each tender must state the par amount of bills bid for, which must be a In general, if a bill is purchased at issue after July 18, 1984, and held minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. to maturity, the amount of discount is reportable as ordinary income in Competitive tenders must also show the yield desired, expressed on a bank the Federal income tax return of the owner at the time of redemption. discount rate basis with two decimals, e.g., 7.15%. Fractions may not be Accrual-basis taxpayers, banks, and other persons designated in section used. A single bidder, as defined in Treasury’s single bidder guidelines, shall 1281 of the Internal Revenue Code must include in income the portion of not submit noncompetitive tenders totaling more than $1,000,000. the discount for the period during the taxable year such holder held the Banking institutions and dealers who make primary markets in Govern bill. If the bill is sold or otherwise disposed of before maturity, the por ment securities and report daily to the Federal Reserve Bank of New York tion of the gain equal to the accrued discount will be treated as ordinary their positions in and borrowings on such securities may submit tenders for income. Any excess may be treated as capital gain. account of customers, if the names of the customers and the amount for Department of the Treasury Circulars, Public Debt Series—Nos. 26-76 each customer are furnished. Others are only permitted to submit tenders and 27-76, Treasury’s single bidder guidelines, and this notice, prescribe the for their own account. Each tender must state the amount of any net long terms of these Treasury bills and govern the conditions of their issue. position in the bills being offered if such position is in excess of $200 Copies of the circulars, guidelines, and tender forms may be obtained from million. This information should reflect positions held as of 12:30 p.m., any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Daylight Saving time, Monday, October 1, 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. Forms for submitting tenders directly to the Treasury are available from the Government Bond Division of 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 maturing on or before the issue date. Treasury Tax and Loan Note Option Depositaries may make payment fo r Treasury bills by credit to their Treasury Tax and Loan Note Accounts. Results of the last weekly offering of Treasury bills are shown on the reverse side of this circular. A n th o n y M. So l o m o n , President The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $12,000 million, to be issued October 4, 1984. This offering will result in a paydown for the Treasury of about $500 million, as the maturing bills were originally issued in the amount of $12,491 million. This reduction is necessary as (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 27, 1984) Range o f A ccepted C om petitive Bids 91-Day Treasury Bills Maturing December 27, 1984 Low ra te............................. ............. High r a t e ........................... ............. Average rate .................... ............. 182-Day Treasury Bills Maturing March 28, 1985 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 10.22% 10.30% 10.27% 10.64% 10.72% 10.69% 97.417 97.396 97.404 10.37% 10.39% 10.39% 11.10% 11.12% 11.12% 94.757 94.747 94.747 'Equivalent coupon-issue yield. (59 percent o f the amount o f 182-day bills bid for at the high discount rate was accepted.) (5 percent o f the amount o f 91-day bills bid for at the high discount rate was accepted.) T otal Tenders Received and A ccepted 91-Day Treasury Bills Maturing December 27, 1984 Bv Received F.R. District (and U.S. Treasury) B o sto n .......................................... New Y o r k .................................... P h ilad elp h ia............................... Cleveland ................................... R ich m on d .................................... A t la n t a ........................................ C h ica g o ........................................ St. L o u is ...................................... M in n e a p o lis............................... Kansas C ity ................................. Dallas .......................................... San F ran cisco ............................. $ 323,135,000 12,562,695,000 39,235,000 146,445,000 54,250,000 48,955,000 1,252,875,000 51,465,000 20,625,000 32,320,000 37,960,000 1,517,035,000 182-Day Treasury Bills Maturing March 28, 1985 Accepted $ 48,135,000 5,011,445,000 39,235,000 146,445,000 46,350,000 41,955,000 219,875,000 21,965,000 20,625,000 32,310,000 32,960,000 705,535,000 Received $ 326,485,000 17,675,220,000 19,480,000 94,250,000 56,635,000 55,350,000 1,451,715,000 60,810,000 24,085,000 51,045,000 30,250,000 1,258,625,000 A ccepted $ 51,485,000 5,302,665,000 19,480,000 50,150,000 52,225,000 41,530,000 230,055,000 29,310,000 19,985,000 50,545,000 20,250,000 371,525,000 233,175,000 233,175,000 365,710,000 365,710,000 $16,320,170,000 $6,600,010,000 $21,469,660,000 $6,604,915,000 Public C o m p e titiv e ...................... N o n co m p etitiv e............... $13,616,625,000 1,005,555,000 $3,896,465,000 1,005,555,000 $18,497,450,000 1,053,710,000 $3,632,705,000 1,053,710,000 S ubtotals ...................... Federal R e s e r v e ........................ Foreign O fficial Institutions . . $14,622,180,000 1,288,390,000 409,600,000 $4,902,020,000 1,288,390,000 409,600,000 $19,551,160,000 1,100,000,000 818,500,000 $4,686,415,000 1,100,000,000 818,500,000 Totals......................... $16,320,170,000 $6,600,010,000 $21,469,660,000 $6,604,915,000 U.S. T reasury............................. T otals ............................. By class o f bidder
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