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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9787 January 9, 1985 O FFE R IN G OF TW O SERIES O F TR EA SU RY BILLS $7,000,000,000 of 91-Day Bills, To Be Issued January 17, 1985, Due April 18, 1985 $7,000,000,000 of 182-Day Bills, To Be Issued January 17, 1985, Due July 18, 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: The Department of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $14,000 million, to be issued January 17, 1985. This offering will result in a paydown of about $4,300 million, as the maturing bills total $18,303 million (including the 45-day cash management bills issued December 3, 1984, in the amount of $5,008 million). The $13,295 million of regular maturities includes $1,760 million currently held by Federal Reserve Banks as agents for foreign and international monetary authorities and $2,335 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 $7,000 million, representing an additional amount of bills dated April 19, 1984, and to mature April 18, 1985 (CUSIP No. 912794 GK4), currently outstanding in the amount of $14,934 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $7,000 million, to be dated January 17, 1985, and to mature July 18, 1985 (CUSIP No. 912794 HS6). Both series of bills will be issued for cash and in exchange for Treasury bills maturing January 17, 1985. 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 accounts 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, January 14, 1985. 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 $10,000 must be in multiples of $5,000. 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 January 17, 1985, in cash or other immediately-available funds or in Treasury bills maturing January 17, 1985. Cash adjustments will be made for differences between 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:Q0 p.m., Eastern Standard time, Monday, January 14, 1985, 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 are shown on the reverse side of this circular. E. GERALD CORRIGAN, President (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 10, 1985) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 11, 1985 Discount Rate Low rate......................... ........... High r a t e ....................... ........... Average rate ................. ........... 7.75070 7.79% 7.78% Investment Rate1 8.01% 8.06% 8.05% 182-Day Treasury Bills Maturing July 11, 1985 Discount Rate Price 98.041 98.031 98.033 Investment Rate1 8.00% 8.02% 8.02% 8.45% 8.48% 8.48% Price 95.956 95.945 95.945 'Equivalent coupon-issue yield. (47 percent of the amount of 91-day bills bid for at the high discount rate was accepted.) (54 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 April 11, 1985 By F.R. District (and U.S. Treasury) B o s to n .......................................... New Y o r k ................................... P h ila d e lp h ia ............................... C le v e la n d ................................... R ic h m o n d ................................... A tlan ta ........................................ C h ic a g o ........................................ St. L o u i s ...................................... M in n e a p o lis ............................... K ansas C ity ................................. Dallas .......................................... San F ra n c is c o ............................. Received $ 605,655,000 15,744,720,000 36,910,000 116,970,000 60,440,000 86,540,000 1,153,340,000 72,270,000 47,410,000 78,850,000 72,965,000 1,694,550,000 A ccepted $ 255,655,000 182-Day Treasury Bills Maturing July 11, 1985 Received 5,249,440,000 36,910,000 68,720,000 53,910,000 67,445,000 241,390,000 52,270,000 47,410,000 78,850,000 45,315,000 449,550,000 607,570,000 19,406,615,000 21,450,000 105,230,000 114,795,000 119,660,000 1,321,800,000 66,790,000 46,125,000 76,500,000 54,470,000 2,143,765,000 $ Accepted $ 50,965,000 5,422,800,000 21,450,000 40,230,000 80,855,000 44,140,000 224,540.000 26,790,000 20,085,000 73,500,000 34,470,000 589,325,000 U .S. T re a s u ry ............................. 361,750,000 361,750,000 432,535,000 432,535,000 T OTALS............................. $20,132,370,000 $7,008,615,000 $24,517,305,000 $7,061,685,000 $4,314,355,000 1,367,330,000 $21,622,525,000 1,095,935,000 $4,466,905,000 1,095,935,000 S ubtotals ...................... F ederal R e s e r v e ........................ F oreign O fficial Institutions . . $17,138,110,000 1,367,330,000 $18,505,440,000 1,432,935,000 193,995,000 $5,681,685,000 1,132,935,000 193,995,000 $22,718,460,000 1,300,000,000 498,845,000 $5,562,840,000 1,000,000,000 498,845,000 T o ta ls ............................. $20,132,370,000 $7,008,615,000 $24,517,305,000 $7,061,685,000 By class of bidder Public C o m p e titiv e ...................... N o n c o m p e titiv e ............... An additional $56,005 thousand of 13-week bills and an additional $153,455 thousand of 26-week bills will be issued to foreign official institutions for new cash.
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