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FEDERAL RESERVE BAMK OF MEW YORK Fiscal Agent of the United States C ircular N o . 975® N o v em b er 7 , 1984 OFFERING OF TWO SEMES OF TREASURY BILLS $6,800,000,00© off 91-Bay Bills, To Be Issued November 15, 1984, Due February 14, 1985 $6,800,000,000 off 182-Day Bills, To Be Issued November 15, 1984, Dee May 16, 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: T h e D ep artm ent o f the Treasury, b y this p u b lic n o tice, invites tenders for tw o series o f T reasury bills to ta lin g approxim ately $ 1 3 ,6 0 0 m illio n , to be issued N o v em b er 15, 1984. T his o ffer in g w ill provid e a b o u t $1,875 m illion o f new cash fo r the Treasury, as the m aturing bills are ou tstand in g in the am o u n t o f $ 1 1 ,7 1 7 m illio n , inclu d in g $727 m illion currently held by Federal R eserve B anks as agents for fo reig n and international m onetary authorities and $ 2 ,3 0 4 m illio n currently held by Federal R eserve B anks for their ow n a cco u n t. T h e tw o series o ffer ed are as follow s: 9 1 -day b ills (to m a tu rity d ate) fo r a p p ro x im a tely $ 6 ,8 0 0 m illio n , 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 16, 1984, a n d to m a tu re F eb ru ary 14, 1985 (C U S IP N o . 9127 9 4 G T 5 ), cu rren tly o u tsta n d in g in th e a m o u n t o f $ 6 ,6 6 7 m illio n , the a d d itio n a l an d o rig in a l b ills to b e freely in te rch a n g ea b le . 182-day bills (to m aturity date) for ap p roxim ately $ 6 ,8 0 0 m illion , rep resen tin g an a d d itio n a l a m o u n t o f b ills d a ted M a y 17, 1984, an d to m a tu re M a y 16, 1985 (C U S IP N o . 9 1 2 7 9 4 G L 2 ), cur ren tly o u tsta n d in g in th e a m o u n t o f $ 8,111 m illio n , th e ad d i tio n a l a n d o rig in a l b ills to b e freely in te rch a n g ea b le. B o th series o f b ills w ill b e issu ed fo r ca sh a n d in e x ch a n g e fo r T reasu ry b ills m atu rin g N o v e m b e r 15, 1984. T en d ers fr o m F ederal R eserv e B an k s for th e m selv es an d as a g en ts fo r fo reig n an d in te rn a tio n a l m o n e ta ry a u th orities w ill b e a ccep ted at th e w e ig h ted a v era g e b an k d isc o u n t rates o f accep ted co m p e titiv e ten d ers. A d d itio n a l a m o u n ts o f th e b ills m ay be issu ed to F ed eral R eserve B a n k s, as a g en ts fo r fo reig n a n d in te rn a tio n a l m onetary au th orities, to the extent tha t the aggregate a m o u n t o f tenders for such accou n ts exceeds the aggregate a m o u n t o f m aturing bills held b y them . T h e b ills w ill b e issu ed o n a d isc o u n t b a sis u n d er co m p e titiv e an d n o n co m p e titiv e b id d in g , an d at m a tu rity their par a m o u n t w ill b e p ayab le w ith o u t in terest. B o th series o f b ills w ill b e issu ed en tirely in b o o k -e n tr y fo rm in a m in im u m a m o u n t o f $ 1 0 ,0 0 0 an d in a n y higher $ 5 ,0 0 0 m u ltip le, o n th e records either o f th e F ed eral R eserv e B a n k s a n d B r a n c h e s, or o f th e D ep a rtm e n t o f th e T reasury. T end ers w ill b e received at F ed eral R eserv e B a n k s an d B ranches an d at th e B ureau o f th e P u b lic D e b t, W a sh in g to n , D .C . 2 0 2 3 9 , p rior to 1:00 p .m ., E astern Stan d ard tim e, T u esd a y , N o v e m b e r 13, 1984. F orm PD 4 632-2 (fo r 2 6 -w eek series) or F o rm P D 4 6 32-3 (fo r 13-w eek series) sh o u ld b e u sed to su b m it ten ders fo r b ills to b e m a in ta in ed o n th e b o o k -e n tr y records o f th e D ep a rtm e n t o f th e T reasury. E ach tender m ust state the par a m o u n t o f bills bid fo r, w hich m ust be a m inim u m o f $ 1 0 ,0 0 0 . T enders over $ 1 0 ,0 0 0 m ust be in m ultiples o f $5,000. C om p etitive tenders m ust a lso sh o w the yield desired, expressed o n a bank d iscou n t rate basis w ith tw o d ecim als, e .g ., 7 .1 5 % . F ractions m ay n o t be used. A single bidder, as d efined in T reasury’s single bidder gu id elines, shall n ot subm it n o n co m p etitiv e tenders to ta lin g m ore than $ 1 ,0 0 0 ,0 0 0 . B anking in stitu tio n s and dealers w h o m a k e prim ary m arkets in G overn m ent securities and report daily to the Federal R eserve B ank o f N ew Y ork their p o sitio n s in and borrow ings o n such securities m ay subm it tenders for accou n t o f cu stom ers, i f the nam es o f the cu stom ers and the a m o u n t for each custom er are furnished. O thers are o n ly perm itted to subm it tenders for their o w n a cco u n t. E ach tender m ust state the a m oun t o f any net lon g p osition in the bills b ein g o ffer ed if such p o sitio n is in excess o f $200 m illion . T his in fo r m a tio n sh o u ld reflect p o sitio n s held as o f 12:30 p .m ., Eastern tim e, o n the d ay o f the a u ctio n . Such p o sitio n s w o u ld in clu d e bills acquired through “ w h en issu ed ” trading, and futures and forw ard transac tions as w ell as h old ings o f o u tsta nd in g bills w ith the sam e m aturity date as the new o ffer in g , e .g ., bills w ith three m o n th s to m aturity previously o ffer ed as six-m onth bills. D ealers w h o m ake prim ary m arkets in G overn m ent securities and report daily to the Federal R eserve B ank o f N ew Y ork their p ositio n s in and borrow ings o n such securities, w h en subm itting tenders for cu stom ers, m ust subm it a separate tender fo r each custom er w h o se net lon g p o sitio n in the bills b ein g o ffer ed exceeds $200 m illion . A n o n c o m p e titiv e b id der m ay n o t h ave en tered in to an a g reem en t, nor m ak e an a greem en t to p u rch ase or sell or oth e rw ise d isp o se o f an y n o n c o m p e titiv e aw ard s o f th is issu e b ein g a u c tio n e d p rior to th e d esign ated clo sin g tim e fo r receip t o f ten ders. P a y m en t fo r th e fu ll par a m o u n t o f th e b ills a p p lied fo r m u st a c c o m p an y all ten d ers su b m itted fo r b ills to b e m a in ta in ed o n th e b o o k -e n tr y records o f th e D ep a rtm e n t o f th e T reasu ry. A cash ad ju stm en t w ill be m a d e o n all a c cep ted ten d ers fo r th e d iffe r e n c e b etw een th e par p aym e n t su b m itted an d th e actu al issu e price as d eterm in ed in th e a u ctio n . N o d e p o sit n eed a c c o m p a n y ten ders fr o m in co rp o ra ted b an k s and trust co m p a n ie s an d fro m r e sp o n sib le an d reco g n ized dealers in in v e st m en t se cu rities fo r b ills t o b e m a in ta in ed o n th e b o o k -e n tr y record s o f F ed eral R eserve B an k s an d B ranches. A d e p o sit o f 2 p ercen t o f th e par a m o u n t o f th e b ills a p p lied fo r m u st a c c o m p a n y ten ders fo r su ch bills fro m o th e r s, u n less an exp ress g u aran ty o f p a y m e n t b y an in co rp o ra ted b a n k or tru st co m p a n y a c c o m p a n ies th e ten ders. P u b lic a n n o u n c e m e n t w ill b e m a d e b y th e D ep a rtm e n t o f th e T reasu ry o f th e a m o u n t an d yield ran ge o f a ccep ted b id s. C o m p e titiv e b id d ers w ill b e a d vised o f th e a ccep ta n ce or r ejectio n o f their ten d ers. T h e Secretary o f th e T reasu ry exp ressly reserves th e right to accep t or reject an y or all ten d ers, in w h o le or in p art, an d th e S ecreta ry ’s a c tio n sh all b e fin a l. S u b je c t to th e se reserv a tio n s, n o n c o m p e titiv e ten ders fo r each issu e for $ 1 ,0 0 0 ,0 0 0 or less w ith o u t stated y ie ld fro m an y o n e bid der w ill b e a c cep ted in fu ll at th e w e ig h ted average b a n k d isc o u n t rate (in tw o d ecim a ls) o f a ccep ted c o m p e titiv e b id s fo r th e resp ectiv e issu es. T h e c a lc u la tio n o f p u rch ase p rices fo r a c cep ted bid s w ill b e carried to three d ecim a l p la ces o n th e b asis o f p rice per h u n d r ed , e .g ., 9 9 .9 2 3 , an d th e d eterm in a tio n s o f th e S ecretary o f th e T reasu ry sh all b e fin a l. S ettlem en t fo r accep ted ten ders fo r b ills to b e m a in ta in ed o n th e b o o k entry records o f F ed eral R eserve B an k s an d B ran ch es m u st b e m a d e or c o m p leted at th e F ed eral R eserve B a n k or B ranch o n N o v e m b e r 15, 1984, in cash or o th er im m e d ia tely -a v a ila b le fu n d s or in T reasury bills m atu rin g N o v e m b e r 15, 1984. C ash a d ju stm en ts w ill b e m a d e fo r d iffe r e n c e s b e tw een th e par v a lu e o f th e m atu rin g b ills accep ted in ex ch a n g e an d the issu e price o f th e n ew b ills. In a d d itio n , T reasu ry T a x an d L o a n N o te O p tio n D e p o sita r ie s m ay m a k e p a y m e n t fo r a llo tm e n ts o f b ills fo r their o w n a cc o u n ts an d fo r a c c o u n t o f cu sto m ers b y cred it to their T reasury T a x an d L o a n N o te A c c o u n ts o n th e se ttlem en t d ate. In gen eral, i f a b ill is p u rch ased at issu e a fter Ju ly 18, 1984, an d h eld to m atu rity, th e a m o u n t o f d isc o u n t is rep ortab le as ord in ary in c o m e in th e F ed eral in c o m e tax return o f th e o w n er at th e tim e o f red em p tio n . A ccr u a l-b a sis ta x p a y e rs, b a n k s, an d o th er p erso n s d esig n a ted in se ctio n 1281 o f th e In tern al R ev en u e C o d e m u st in c lu d e in in c o m e th e p o r tio n o f th e d isc o u n t fo r th e p eriod d u rin g th e ta x a b le year su ch h old er h eld the b ill. I f th e b ill is so ld or oth e rw ise d isp o se d o f b e fo r e m atu rity , th e p o r tio n o f th e g ain eq u al to th e accru ed d isc o u n t w ill b e treated as ord in ary in c o m e . A n y excess m a y b e treated as cap ital ga in . D ep artm ent o f the T reasury C irculars, P u b lic D eb t Series— N o s. 26-76 and 27-76, T reasury’s sin gle bidder gu id elines, and this n otice, prescribe the term s o f these T reasury bills and govern the con d ition s o f their issue. C op ies o f th e circulars, gu id elines, an d tender form s m ay b e ob tain ed from any Federal R eserve B an k or B ranch, or from th e B ureau o f th e P u b lic D eb t. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Standard time, Tuesday, November 13, 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 , P r e s id e n t Closing date for receipt off tenders is Tuesday, November 13, 1984 (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 8, 1984) Mange of Accepted Competitive lid s 91-Day Treasury Bills Maturing February 7, 1985 Low rate.......................... ............ High r a te ........................ ............ Average rate .................. ............ 182-Day Treasury Bills Maturing May 9, 1985 Discount Rate Investment Rate1 Price Discount Rate Investment Rate1 Price 8.81% 8.83% 8.82% 9.14% 9.16% 9.14% 97.773 97.768 97.771 9.05% 9.08% 9.07% 9.62% 9.65% 9.64% 95.425 95.410 95.415 'E q u iv a len t c o u p o n -is su e y ield . (58 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (36 percent of the amount of 182-day bills bid for at the high discount rate was accepted.) Total Tenders Received and Accepted 91-Day Treasury Bills Maturing February 7, 1985 B y F .R . D is tr ic t (a n d U .S . T rea su ry) Boston...................................... New Y ork ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tlan ta .................................... Chicago.................................... St. L o u is.................................. Minneapolis............................ Kansas City.............................. Dallas ...................................... San Francisco.......................... R e c e iv e d $ 387,085,000 17,295,830,000 42,320,000 136,520,000 46,885,000 40,850,000 819,535,000 64,165,000 22,705,000 62,195,000 73,555,000 1,384,850,000 182-Day Treasury Bills Maturing May 9, 1985 A c c e p te d $ 37,085,000 5,976,220,000 42,320,000 61,025,000 40,885,000 40,265,000 101,930,000 24,165,000 10,705,000 57,695,000 38,555,000 69,850,000 R e c e iv e d $ 396,615,000 16,432,530,000 21,865,000 80,765,000 54,510,000 29,595,000 1,727,455,000 64,085,000 25,400,000 44,195,000 51,690,000 1,254,250,000 A c c e p te d $ 46,615,000 5,706,675,000 21,865,000 37,325,000 43,010,000 29,595,000 280,855,000 24,070,000 25,400,000 43,195,000 26,690,000 117,250,000 U.S. Treasury.......................... 307,395,000 307,395,000 404,740,000 404,740,000 T o t a l s ..................................... $20,683,890,000 $6,808,095,000 $20,587,695,000 $6,807,285,000 $18,010,605,000 1,096,440,000 $4,134,810,000 1,096,440,000 $17,846,710,000 967,305,000 $4,066,300,000 967,305,000 $19,107,045,000 1,239,925,000 336,920,000 $5,231,250,000 1,239,925,000 336,920,000 $18,814,015,000 1,200,000,000 573,680,000 $5,033,605,000 1,200,000,000 573,680,000 $20,683,890,000 $6,808,095,000 $20,587,695,000 $6,807,285,000 B y c la ss o f b id d e r Public Com petitive.................... Noncompetitive.............. S u b t o t a l s ............................. Federal R eserve...................... Foreign Official Institutions .. T o t a l s ..................................... An additional $59,480 thousand of 13-week bills and an additional $88,820 thousand of 26-week bills will be issued to foreign official institutions for new cash.