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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States _ Circular No. 9742 October 17, 1984 OFFERING OF TWO SEMES OF TREASURY MILLS $6,(5©®,®©©,®®© o f 91-Oay Fills, To Fe Issued October 25, 1984, Due January 24, 1985 $6,6©®,©©©,©®© off 182°Bay Bills, To Be Issued October 25, 1984, Due April 25, 1985 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: The Department of the Treasury, by this public notice, invites tenders their positions in and borrowings on such securities, when submitting for two series of Treasury bills totaling approximately $13,200 million, to tenders for customers, must submit a separate tender for each customer be issued October 25, 1984. This offering will provide about $1,525 million whose net long position in the bills being offered exceeds $200 million. of new cash for the Treasury, as the maturing bills are outstanding in the A noncompetitive bidder may not have entered into an agreement, nor amount of $11,673 million, including $1,264 million currently held by make an agreement to purchase or sell or otherwise dispose of any non Federal Reserve Banks as agents for foreign and international monetary competitive awards of this issue being auctioned prior to the designated authorities and $1,713 million currently held by Federal Reserve Banks for closing time for receipt of tenders. their own account. The two series offered are as follows: Payment for the full par amount of the bills applied for must accom 91-day bills (to maturity date) for approximately $6,600 million, pany all tenders submitted for bills to be maintained on the book-entry representing an additional amount of bills dated January 26, records of the Department of the Treasury. A cash adjustment will be 1984, and to mature January 24, 1985 (CUSIP No. 912794 made on all accepted tenders for the difference between the par payment GG3), currently outstanding in the amount of $15,134 million, submitted and the actual issue price as determined in the auction. the additional and original bills to be freely interchangeable. No deposit 182-day bills for approximately $6,600 million, to be dated trust companiesneed accompany tenders from incorporated banks and and from recognized dealers in invest October 25, 1984, and to mature April 25, 1985 (CUSIP No. ment securities for bills to responsible andon the book-entry records of be maintained 912794 HA5). A deposit of 2 percent Both series of bills w be issued for cash and in exchange for Treasury Federal Reserve Banks and Branches. accompany tenders of the par ill applied for must bills maturing October 25, 1984. Tenders from Federal Reserve Banks for amount of the bills an express guaranty of payment by anfor such bills from others, incorporated themselves and as agents for foreign and international monetary authorities bank or trust unless accompanies the tenders. company will be accepted at the weighted average bank discount rates of accepted Public announcement will be made by the Department of the Treasury competitive tenders. Additional amounts of the bills may be issued to and yield range of accepted bids. Competitive bidders will Federal Reserve Banks, as agents for foreign and international monetary of the amountthe acceptance or rejection of their tenders. The Secretary advised of authorities, to the extent that the aggregate amount of tenders for such ac be the Treasury expressly reserves the right to accept or reject any or all of counts exceeds the aggregate amount of maturing bills held by them. tenders, in whole or in part, shall be The bills will be issued on a discount basis under competitive and non ject to these reservations, and the Secretary’s actionfor eachfinal. Sub noncompetitive issue competitive bidding, and at maturity their par amount will be payable $1,000,000 or less without stated yield fromtenders bidder will be for any one ac without interest. Both series of bills will be issued entirely in book-entry cepted in full at the weighted average bank discount rate (in two decimals) form in a minimum amount of $10,000 and in any higher $5,000 multiple, of accepted competitive bids for the respective issues. The calculation of on the records either of the Federal Reserve Banks and Branches, or of purchase prices for accepted bids will be carried to three decimal places on the Department of the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the basis of price per hundred, e.g., 99.923, and the determinations of the the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 Secretary of the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookp.m., Eastern-Daylight Saving time, Monday, October 22, 1984. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series) entry records of Federal Reserve Banks and Branches must be made or should be used to submit tenders for bills to be maintained on the book- completed at the Federal Reserve Bank or Branch on October 25, 1984, in cash or other immediately-available funds or in Treasury bills maturing entry records of the Department of the Treasury. Each tender must state the par amount of bills bid for, which must be a October 25, 1984. Cash adjustments will be made for differences between minimum of $10,000. Tenders over $10,000 must be in multiples of $5,000. the par value of the maturing bills accepted in exchange and the issue Competitive tenders must also show the yield desired, expressed on a bank price of the new bills. In addition, Treasury Tax and Loan Note Option discount rate basis with two decimals, e.g., 7.159 . Fractions may not be Depositaries may make payment for allotments of bills for their own /o used. A single bidder, as defined in Treasury’s single bidder guidelines, shall accounts and for account of customers by credit to their Treasury Tax and Loan Note Accounts on the settlement date. not submit noncompetitive tenders totaling more than $1,000,000. In general, if a bill is purchased at issue after July 18, 1984, and held Banking institutions and dealers who make primary markets in Govern ment securities and report daily to the Federal Reserve Bank of New York to maturity, the amount of discount is reportable as ordinary income in their positions in and borrowings on such securities may submit tenders for the Federal income tax return of the owner at the time of redemption. account of customers, if the names of the customers and the amount for Accrual-basis taxpayers, banks, and other persons designated in section each customer are furnished. Others are only permitted to submit tenders 1281 of the Internal Revenue Code must include in income the portion of for their own account. Each tender must state the amount of any net long the discount for the period during the taxable year such holder held the position in the bills being offered if such position is in excess of $200 bill. If the bill is sold or otherwise disposed of before maturity, the por million. This information should reflect positions held as of 12:30 p.m., tion of the gain equal to the accrued discount will be treated as ordinary Eastern time, on the day of the auction. Such positions would include bills income. Any excess may be treated as capital gain. Department of the Treasury Circulars, Public Debt Series— 26-76 Nos. acquired through “when issued” trading, and futures and forward transac tions as w as holdings of outstanding bills with the same maturity date as and 27-76, Treasury’s single bidder guidelines, and this notice, prescribe the ell the new offering, e.g., bills with three months to maturity previously terms of these Treasury bills and govern the conditions of their issue. offered as six-month bills. Dealers who make primary markets in Govern Copies of the circulars, guidelines, and tender forms may be obtained from ment securities and report daily to the Federal Reserve Bank of New York any Federal Reserve Bank or Branch, or fromthe 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 22, 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 t h o n y M . So l o m o n , President (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY RILLS (TWO SERIES TO BE ISSUE© OCTOBER 18, 1984) Range off Accepted Competitive Rids 91-Day Treasury Bills Maturing January 17, 1985 D is c o u n t Low rate.......................... ............ ............ High r a te .................. Average r a t e .................. ............ I n v e s tm e n t R a te 1 10.36% 10.39% 10.38% 182-Day Treasury Bills Maturing April 18, 1985 9.96% 9.99% 9.98% R a te D is c o u n t I n v e s tm e n t 1 P r ic e R a te R a te 97.482 97.475 97.477 10.06% 10.08% 10.08% 10.75% 10.77% 10.77% P r ic e 94.914 94.904 94.904 'Equivalent coupon-issue yield. (87 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) (30 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing January 17, 1985 Boston ..................................... New Y o rk ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tlan ta.................................... Chicago.................................... St. L o u is ................................. Minneapolis ........................... Kansas City.............................. Dallas .................................... San Francisco ......................... 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) $ 294,085,000 17,848,180,000 32,555,000 86,965,000 69,690,000 53,485,000 1,226,820,000 72,600,000 8,165,000 49,070,000 62,355,000 1,531,395,000 182-Day Treasury Bills Maturing April 18, 1985 $ 182,235,000 5,148,780,000 32,555,000 49,965,000 56,890,000 51,785,000 296,620,000 51,800,000 8,165,000 49,070,000 33,855,000 325,095,000 R e c e iv e d $ 292,615,000 15,064,045,000 19,670,000 51,245,000 58,460,000 35,035,000 1,276,540,000 58,330,000 13,880,000 46,435,000 30,735,000 1,721,970,000 A c c e p te d $ 41,050,000 4,849,595,000 19,670,000 31,245,000 55,265,000 35,035,000 359,950,000 33,330,000 13,685,000 45,370,000 30,085,000 669,130,000 U.S. Treasury......................... 326,105,000 326,105,000 428,850,000 428,850,000 T otals......................... $21,661,470,000 $6,612,920,000 $19,097,810,000 $6,612,260,000 $19,208,435,000 1,144,305,000 $4,259,885,000 1,144,305,000 $16,335,700,000 1,069,110,000 $3,950,150,000 1,069,110,000 Subtotals .................... $20,352,740,000 1,149,230,000 Federal Reserve........ ............ 159,500,000 Foreign Official Institutions .. $5,404,190,000 1,049,230,000 159,500,000 $17,404,810,000 1,100,000,000 593,000,000 $5,019,260,000 1,000,000,000 593,000,000 $6,612,920,000 $19,097,810,000 $6,612,260,000 B y c la ss o f b id d e r Public Competitive.................... Noncompetitive.............. Totals......................... $21,661,470,000
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