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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9767 December 12, 1984 O FF E R IN G OF TW O SERIES OF TR EA SU R Y BILLS $6,800,000,000 of 91=Day Bills, To Be Issued December 20, 1984, Due March 21, 1985 $6,800,000,000 of 182-Day Bills, To Be Issued December 20, 1984, Due June 20, 1985 T o A l l B a n k in g I n s titu tio n s , a n d O th e r s C o n c e r n e d , in t h e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : Following is the text of a notice issued by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $13,600 million, to be issued December 20, 1984. This offering will result in a paydown of about $4,500 million, as the maturing bills total $18,091 million (including the 17-day cash management bills issued December 3, 1984, in the amount of $5,013 million). The $13,078 million of regular maturities includes $1,330 million current ly held by Federal Reserve Banks as agents for foreign and international monetary authorities and $3,434 million currently held by Federal Reserve Banks for their own account. The two series offered are as follows: 91-day bills (to maturity date) for approximately $6,800 million, representing an additional amount of bills dated March 22, 1984, and to mature March 21, 1985 (CUSIP No. 912794 GJ7), currently outstanding in the amount of $14,895 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $6,800 million, to be dated December 20, 1984, and to mature June 20, 1985 (CUSIP No. 912794 HG2). Both series of bills will be issued for cash and in exchange for Treasury bills maturing December 20, 1984. Tenders from Federal Reserve Banks for themselves and as agents for foreign and international monetary authorities will be accepted at the weighted average bank discount rates of accepted competitive tenders. Additional amounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such ac counts exceeds the aggregate amount of maturing bills held by them. The bills will be issued on a discount basis under competitive and non competitive bidding, and at maturity their par amount will be payable without interest. Both series of bills will be issued entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000 multiple, on the records either of the Federal Reserve Banks and Branches, or of the Department of the Treasury. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 p.m., Eastern Standard time, Monday, December 17, 1984. Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series) should be used to submit tenders for bills to be maintained on the book-entry records of the Department of the Treasury. Each tender must state the par amount of bills bid for, which must be a minimum of $10,000. Tenders over $10,(X ) must be in multiples of $5,000. X Competitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decimals, e.g., 7.15%. Fractions may not be used. A single bidder, as defined in Treasury’s single bidder guidelines, shall not submit noncompetitive tenders totaling more than $1,000,000. Banking institutions and dealers who make primary markets in Govern ment securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such securities may submit tenders for account of customers, if the names of the customers and the amount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state the amount of any net long position in the bills being offered if such position is in excess of $200 million. This information should reflect positions held as of 12:30 p.m., 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 their positions in and borrowings on such securities, when submitting tenders for customers, must submit a separate tender for each customer whose net long position in the bills being offered exceeds $200 million. A noncompetitive bidder may not have entered into an agreement, nor make an agreement to purchase or sell or otherwise dispose of any non competitive awards of this issue being auctioned prior to the designated closing time for receipt of tenders. Payment for the full par amount of the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records of the Department of the Treasury. A cash adjustment will be made on all accepted tenders for the difference between the par payment submitted and the actual issue price as determined in the auction. No deposit need accompany tenders from incorporated banks and trust companies and from responsible and recognized dealers in invest ment securities for bills to be maintained on the book-entry records of Federal Reserve Banks and Branches. A deposit of 2 percent of the par amount of the bills applied for must accompany tenders for such bills from others, unless an express guaranty of payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department of the Treasury of the amount and yield range of accepted bids. Competitive bidders will be advised of the acceptance or rejection of their tenders. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and the Secretary’s action shall be final. Sub ject to these reservations, noncompetitive tenders for each issue for $1,000,000 or less without stated yield from any one bidder will be ac cepted in full at the weighted average bank discount rate (in two decimals) of accepted competitive bids for the respective issues. The calculation of purchase prices for accepted bids will be carried to three decimal places on the basis of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookentry records of Federal Reserve Banks and Branches must be made or completed at the Federal Reserve Bank or Branch on December 20, 1984, in cash or other immediately-available funds or in Treasury bills maturing December 20, 1984. Cash adjustments will be made for differences be tween the par value of the maturing bills accepted in exchange and the issue price of the new bills. In addition, Treasury Tax and Loan Note Option Depositaries may make payment for allotments of bills for their own accounts and for account of customers by credit to their Treasury Tax and Loan Note Accounts on the settlement date. In general, if a bill is purchased at issue after July 18, 1984, and held to maturity, the amount of discount is reportable as ordinary income in the Federal income tax return of the owner at the time of redemption. Accrual-basis taxpayers, banks, and other persons designated in section 1281 of the Internal Revenue Code must include in income the portion of the discount for the period during the taxable year such holder held the bill. If the bill is sold or otherwise disposed of before maturity, the por tion of the gain equal to the accrued discount will be treated as ordinary income. Any excess may be treated as capital gain. Department of the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, Treasury’s single bidder guidelines, and this notice, prescribe the terms of these Treasury bills and govern the conditions of their issue. Copies of the circulars, guidelines, and tender forms may be obtained from 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 Standard time, Monday, December 17, 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. A n th o n y M. So l o m o n , President (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY RILLS (TWO SERIES TO RE ISSUED DECEMBER 13, 1984) Mange off Accepted Competitive Bids 91-Day Treasury Bills Maturing March 14, 1985 D is c o u n t Low rate................................. High rate................................ Average rate ........................... In v e s tm e n t R a te R a te 1 182-Day Treasury Bills Maturing June 13, 1985 8.37% 8.39% 8.38% D is c o u n t P r ic e 8.67% 8.69% 8.68% In v e s tm e n t R a te 97.884 97.879 97.882 8.55% 8.57% 8.57% R a te 1 P r ic e 9.06% 9.08% 9.08% 95.678 95.667 95.667 'Equivalent coupon-issue yield. (48 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (63 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 March 14, 1985 B y F . R . D i s t r i c t ( a n d U .S . T r e a s u r y ) Boston...................................... New Y o rk ................................ Philadelphia............................ Cleveland................................ Richmond................................ A tlan ta.................................... Chicago.................................... St. L o u is.................................. M inneapolis............................ Kansas City.............................. Dallas ...................................... San Francisco.......................... R e c e iv e d $ 182-Day Treasury Bills Maturing June 13, 1985 A c c e p te d R e c e iv e d A c c e p te d 398,720,000 18,820,160,000 25,370,000 81,615,000 63,125,000 51,110,000 1,567,585,000 87,070,000 51,575,000 55,450,000 25,790,000 1,304,620,000 $ 144,330,000 5,785,970,000 25,370,000 48,175,000 38,125,000 42,510,000 108,585,000 47,070,000 10,575,000 54,450,000 25,790,000 191,780,000 U.S. Treasury.......................... 281,965,000 281,965,000 315,060,000 315,060,000 T o t a l s ................................. $22,814,155,000 $6,804,695,000 $20,492,880,000 $6,822,950,000 $19,770,160,000 1,079,940,000 $3,760,700,000 1,079,940,000 $17,631,180,000 861,125,000 $3,961,250,000 861,125,000 Federal R eserve...................... Foreign Official Institutions .. $20,850,100,000 1,608,830,000 355,225,000 $4,840,640,000 1,608,830,000 355,225,000 $18,492,305,000 1,600,000,000 400,575,000 $4,822,375,000 1,600,000,000 400,575,000 T o t a l s ................................. $22,814,155,000 $6,804,695,000 $20,492,880,000 $6,822,950,000 $ 380,945,000 16,613,665,000 20,675,000 73,000,000 59,205,000 95,195,000 1,270,905,000 79,555,000 42,175,000 52,420,000 21,540,000 1,468,540,000 $ 30,945,000 5,436,555,000 18,675,000 31,150,000 42,565,000 33,455,000 187,855,000 34,555,000 15,175,000 48,420,000 21,540,000 607,000,000 B y c la s s o f b i d d e r Public Com petitive.................... Noncompetitive.............. S u b to t a ls ......................... An additional $69,875 thousand of 13-week bills and an additional $79,425 thousand of 26-week bills will be issued to foreign official institutions for new cash.
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