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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States Circular N o . 9745 _October 24, 1984 OFFERING OF TWO SERIES OF TREASURY BILLS $6,60®,0©©,©©© off 91-Day Bills, To Be Issued! November 1, 1984, Due January 31, 1985 $6,6©©,000,00© off 182-Bay Bills, To Be Issued November 1, 1984, Due May 2, 1985 To All 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 D ep artm en t o f the T reasury, by this public notice, invites tenders for tw o series o f T reasury bills totaling approxim ately $13,200 m illion, to be issued N ovem ber 1, 1984. T his offering will provide ab o u t $550 m illion o f new cash fo r the T reasury, as the m aturing bills were originally issued in the am o u n t o f $12,654 m illion (including the 150-day cash m anagem ent bills issued Ju n e 4, 1984, in the am o u n t o f $2,995 m illion). T he tw o series offered are as follows: 91-day bills (to m a tu rity d ate) fo r ap p ro x im ately $6,600 m illion, rep resen tin g an a d d itio n a l a m o u n t o f bills d ated A u g u st 2, 1984 an d to m atu re J a n u a ry 31, 1985 (C U S IP N o. 912794 G R 9), c u rre n tly o u tsta n d in g in th e a m o u n t o f $6,650 m illion, th e ad d itio n a l an d o riginal bills to be freely interchangeable. 182-day bills fo r ap p ro x im ately $6,600 m illion, to be d ated N o v em b er 1, 1984, an d to m a tu re M ay 2, 1985 (C U S IP N o. 912794 H B3). B oth series o f bills will be issued fo r cash an d in exchange fo r T reasury bills m atu rin g N o v em ber 1, 1984. In a d d itio n to the m a tu rin g 13-week, 26-week, an d 150-day cash m an ag em en t bills, there are $7,774 m illion o f m atu rin g 52-week bills. T he d isp o sitio n o f this latter am o u n t was a n n o u n ced last w eek. F ederal Reserve B anks, as agents fo r foreign an d in te rn a tio n a l m o n etary au th o rities, cu rre n tly hold $2,214 m illion, and F ed eral Reserve B anks fo r th eir ow n acco u n t hold $2,613 m illion o f the m atu rin g bills. T hese am o u n ts rep resen t th e com bined holdings o f such acco u n ts fo r th e th ree issues o f m a tu rin g bills. T en d ers fro m F ed eral Reserve B anks fo r them selves an d as agents fo r foreign an d in te rn a tio n a l m o n etary au th o rities will be accepted a t the w eighted average b an k d iscount rates o f accepted com petitive tenders. A d d itio n al am o u n ts o f th e bills m ay be issued to F ederal R eserve B anks, as agents fo r foreig n an d in te rn a tio n a l m onetary authorities, to the extent th a t the aggregate am o u n t o f tenders fo r such accounts exceeds the ag gregate am o u n t o f m aturing bills held by them . F or purposes o f determ in ing such ad ditional am ounts, foreign an d international m onetary authorities are considered to hold $1,854 m illion o f the original 13-week an d 26-week issues. T h e bills will b e issued on a d isco u n t basis u n d er com petitive an d n o n com petitive b id d in g , an d at m a tu rity th eir p a r am o u n t will be p ayable w ith o u t in terest. B o th series o f bills will be issued entirely in b o o k -en try fo rm in a m in im u m a m o u n t o f $10,000 a n d in any higher $5,000 m ultiple, o n th e reco rd s eith er o f the F ed eral Reserve B anks a n d B ranches, o r o f th e D ep artm en t o f th e T reasury. T enders will be received a t F ed eral Reserve Banks an d B ranches an d at th e B u reau o f th e P u b lic D eb t, W ash in g to n , D .C . 20239, p rio r to 1:00 p .m ., E astern S ta n d a rd tim e, M o n d a y , O cto b er 29, 1984. F o rm P D 4632-2 (fo r 26-week series) or F o rm P D 4632-3 (for 13-week series) should be used to su b m it ten d ers fo r bills to be m ain tain ed on the b o o k -en try records o f th e D ep a rtm e n t o f the T reasury. E ach tender m u st state the p ar am o u n t o f bills bid for, which m ust be a m inim um o f $10,000. T enders over $10,000 m ust be in m ultiples o f $5,000. C om petitive tenders m ust also show the yield desired, expressed on a b ank discount rate basis w ith tw o decim als, e.g ., 7.15% . F ractions m ay n ot be used. A single bidder, as defined in T reasu ry ’s single bidder guidelines, shall n o t subm it noncom petitive tenders totaling m ore th an $1,000,000. Banking institutions an d dealers w ho m ake prim ary m arkets in G overn m ent securities an d rep o rt daily to th e Federal Reserve Bank o f New Y ork their positions in an d borrow ings on such securities m ay subm it tenders for account o f custom ers, if the nam es o f the custom ers an d the am o u n t for each custom er are furnished. O thers are only perm itted to subm it tenders fo r their ow n acco u n t. E ach tender m ust state the am o u n t o f any net long position in the bills being offered if such position is in excess o f $200 m illion. This in fo rm atio n should reflect positions held as o f 12:30 p .m ., E astern tim e, on the day o f the auction. Such positions w ould include bills acquired th rough “ w hen issued” trading, an d futures an d fo rw ard tran sac tions as well as holdings o f outstanding bills w ith the sam e m atu rity d ate as the new offering, e.g., bills w ith three m onths to m aturity previously offered as six-m onth bills. Dealers w ho m ake prim ary m arkets in G overn m ent securities an d rep o rt daily to the Federal Reserve Bank o f New York their positions in and borrow ings on such securities, when subm itting tenders fo r custom ers, m ust subm it a separate tender fo r each custom er whose net long position in the bills being offered exceeds $200 m illion. A n o n co m p etitiv e b id d er m ay n o t have entered into an ag reem en t, n o r m ake an agreem ent to pu rch ase or sell o r otherw ise dispose o f an y n o n com petitive aw ards o f this issue being au ctio n ed p rio r to th e d esignated closing tim e fo r receipt o f tenders. P ay m en t fo r th e full p ar am o u n t o f the bills applied fo r m ust acco m pany all tenders su b m itted fo r bills to be m ain tain ed on the b o o k -en try records o f the D ep artm en t o f the T reasu ry . A cash a d ju stm en t will be m ade on all accepted tenders fo r the d ifference betw een the p ar paym ent subm itted an d the actu al issue price as determ ined in the au ctio n . N o deposit need acco m p an y ten d ers from in c o rp o rated b an k s an d tru st com panies an d fro m responsible and recognized dealers in invest m ent securities fo r bills to be m ain tain ed on the b o o k -en try records o f F ederal R eserve B anks and B ranches. A deposit o f 2 percent o f th e p ar a m o u n t o f the bills applied for m ust acco m p an y tenders fo r such bills from o th ers, unless an express g u aran ty o f p aym ent by an in co rp o rated b an k or tru st com pany accom panies the tenders. P ublic an n o u n cem en t will be m ade by the D ep artm en t o f the T reasu ry o f th e am o u n t an d yield range o f accepted bids. C om petitiv e bid d ers will be advised o f the acceptance or rejection o f their tenders. T he S ecretary o f th e T reasury expressly reserves the right to accept or reject any o r all tenders, in w hole or in p a rt, and the S ecretary ’s action shall be final. S u b ject to these reservations, n o ncom petitive tenders fo r each issue for $1,000,000 or less w ith o u t stated yield from any one bidd er will be ac cepted in full a t th e w eighted average b ank d iscount rate (in tw o decim als) o f accepted com petitive bids fo r the respective issues. T he calcu latio n o f purchase prices fo r accepted bids will be carried to three decim al places on the basis o f price per h u n d red , e.g ., 99.923, an d the d eterm in atio n s o f the S ecretary o f the T reasu ry shall be final. S ettlem ent fo r accepted tenders fo r bills to be m ain tain ed on th e b o o k entry records o f F ederal R eserve B anks an d B ranches m ust be m ad e or com pleted at the F ederal Reserve B ank or B ranch on N ovem ber 1, 1984, in cash or o th e r im m ediately-available funds or in T reasury bills m atu rin g N ovem ber 1, 1984. C ash ad ju stm en ts will be m ade fo r differences b e tw een the p ar value o f the m atu rin g bills accepted in exchange an d the issue price o f the new bills. In a d d itio n , T reasu ry T ax an d L oan N ote O p tio n D epositaries m ay m ake pay m en t fo r allotm ents o f bills fo r their ow n accounts an d fo r acco u n t o f cu stom ers by credit to th eir T reasu ry T ax an d L oan N ote A ccounts on th e settlem ent date. In general, if a bill is p u rch ase d at issue after July 18, 1984, an d held to m atu rity , th e a m o u n t o f d iscount is rep o rtab le as o rd in ary incom e in the F ederal incom e tax re tu rn o f th e ow ner at the tim e o f red em p tio n . A ccrual-basis tax p ay ers, b an k s, an d o th er persons designated in section 1281 o f the In tern al R evenue C ode m ust include in incom e th e p o rtio n o f the d iscount fo r the p erio d durin g the tax ab le year such h o ld er held the bill. I f the bill is sold or otherw ise disposed o f b efo re m atu rity , th e p o r tion o f the gain equal to the accrued d isco u n t will be treated as o rd in ary incom e. A ny excess m ay be tre a te d as cap ital gain. D epartm ent o f the T reasury C irculars, P ublic D ebt Series— N os. 26-76 and 27-76, T reasury’s single bidder guidelines, and this notice, prescribe the term s o f these T reasury bills and govern the conditions o f their issue. Copies o f the circulars, guidelines, and tender form s m ay be obtained from any Federal Reserve Bank or B ranch, or from the B ureau o f the Public D ebt. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Standard time, Monday, October 29, 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 for 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. Anthony M. Solomon , P r e s id e n t (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 25, 1984) Mange of Accepted Competitive Bids 91-Day Treasury Bills Maturing January 24, 1985 Low r a te ............................ ............. High r a t e ......................... ............. Average rate ................... ............. D isc o u n t I n v e s tm e n t R a te R a te 9.48% 9.57% 9.54% 1 182-Day Treasury Bills Maturing April 25, 1985 D isc o u n t 9.85% 9.94% 9.91% In v e stm e n t R a te P ric e 97.604 97.581 97.589 9.53% a 9.62% 9.57% R a te 1 10.15% 10.25% 10.20% P ric e 95.182 95.137 95.162 'Equivalent coupon-issue yield. Excepting one tender of $500,000. (41 percent of the am ount o f 182-day bills bid for at the high discount rate was accepted.) (27 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 Maturing January 24, 1985 By F.R. District (and U.S. Treasury) Received 182-Day Treasury Bills Maturing April 25, 1985 Received Accepted $ 161,710,000 4,661,825,000 17,400,000 60,615,000 57,790,000 92,035,000 314,445,000 46,970,000 36,525,000 48,750,000 25,920,000 664,330,000 305,000,000 415,005,000 415,005,000 $16,601,575,000 $6,603,085,000 $18,868,820,000 $6,603,320,000 $14,540,020,000 1,123,720,000 $4,541,530,000 1,123,720,000 $16,275,840,000 1,040,680,000 $4,010,340,000 1,040,680,000 Federal R eserve...................... Foreign Official Institutions .. $15,663,740,000 862,835,000 75,000,000 $5,665,250,000 862,835,000 75,000,000 $17,316,520,000 850,000,000 702,300,000 $5,051,020,000 850,000,000 702,300,000 T otals ............................ $16,601,575,000 $6,603,085,000 $18,868,820,000 $6,603,320,000 $ $ 348,665,000 4,565,305,000 28,795,000 114,995,000 45,995,000 52,595,000 211,685,000 57,125,000 31,855,000 53,845,000 36,610,000 750,615,000 U.S. Treasury.......................... 305,000,000 T otals ............................ $ Accepted 341,210,000 15,281,825,000 17,400,000 60,615,000 57,790,000 92,035,000 1,078,945,000 46,970,000 36,525,000 49,250,000 25,920,000 1,365,330,000 348,665,000 13,104,595,000 28,795,000 114,995,000 45,995,000 52,595,000 1,042,685,000 77,125,000 31,855,000 53,845,000 36,610,000 1,358,815,000 Boston...................................... New Y o rk ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tlan ta.................................... Chicago.................................... St. L o u is.................................. Minneapolis............................ Kansas City.............................. Dallas ...................................... San Francisco.......................... By class o f bidder Public Competitive.................... Noncompetitive.............. Subtotals .....................
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