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FEDERAL RESERVE iAMK OF MEW YORK Fiscal Agent of the United States Circular No. 9884 June 26, 1985 O F F E R IN G O F TW O SERIES O F TR EA SU R Y M L L S $7,©©©,©©©,©©© of 9©=Buy Bills, To Be Issued July 5, 1905, Due October 3, 1905 $7,0©©,©©©,©©© off 181-Bay Bills, To Be Issued July 5, 1905, Due January 2, 190© To A ll 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 July 5, 1985. This offering will provide about $325 million of new cash for the Treasury, as the maturing bills are outstanding in the amount of $13,679 million. 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 Daylight Saving time, Monday, July 1, 1985. The two series offered are as follows: 90-day bills (to maturity date) for approximately $7,000 million, representing an additional amount of bills dated October 4, 1984, and to mature October 3, 1985 (CUSIP No. 912794 HM9), currently outstanding in the amount of $14,919 million, the additional and original bills to be freely interchangeable. 181-day bills for approximately $7,000 million, to be dated July 5, 1985, and to mature January 2, 1986 (CUSIP No. 912794 JL9). 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. The bills will be issued for cash and in exchange for Treasury bills maturing July 5, 1985. Tenders from Federal Reserve Banks for their own account 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. Federal Reserve Banks currently hold $1,215 million as agents for foreign and international monetary authorities, and $2,900 million for their own ac count. Tenders for bills to be maintained on the book-entry records of the Department of the Treasury should be submitted on Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series). 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 bill 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 the issue date, in cash or other immediately-available funds or in Treasury bills maturing on that date. 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 m aturity, the am ount o f discount is reportable as ordinary incom e 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 Daylight Saving time, Monday, July 1, 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 for 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. Please note that the current offering is for 90-day and 181-day Treasury Bills. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 27, 1985) &am@s m a e » r e p COKFETITIVE SX08S i 15-wesk M ils ttMurins S©pt@aibe? 26g 1985 DigCdutit Sp^©ste@al t o ts 1 /. Price Rsl® L@%? Sigh Aver&g© 7.0155 1.10% 7,24% 7.33% i.m 8S««ssfc M ile maturing December 26, i m s s Diecount 8 S ett J / Price ®§*128 8 7*19% £ 7,241 ISo205 1 7*24% 16.215 7.56% 96.ISS 7.62% 96.340 7*621 16.140 ®t the high discount rste for fctoe 13-week M ile •llo tte d 3L6fg fe&dsfa si high discount fete the I6”« e k Mil® were QJl@&e@3 5L0©% t im e r s received m b &ee£p?Ei C te Thou© »ndf) $ i®w fork fh ilsd tlp h ii Cl©^GlGmi Metoond Atlent* Chicago It® L@y&e Minneapolis W m .oca} @itf Sails© ©cm Prsaelse© ErSftSUry w m IS Competitive Koneoapetitiv# 8ubtotolv Public feds m l teservt Foreign O fficial In stitu tion s TOTALS 1340735 11,787,850 26p160 4480§S IfoSSS 49„800 1,25^090 69,155 41,040 846610 46,310 1b8S?i>3I0 279,88s $ ®4,735< 5,095,450 26,360 44,055 37,575 41,600 S l i D@ ? 0 Received s S 113,810 s 16,125,700 5 14,060 i 183,079 8 63,190 i § e @i s 0 a i s0 i i Biis 49,555 41,040 ®40®IO' 46,390 443,310 2?fS,®§5 $?»0218535 s s 8 a s § 8 f l6 86579S90 s isi.isi * 117,80,145 108I3«150 $4,442,790 1,024,795 $5,467,585 1,853,ISO 1000l@0 300.800 $17,735,735 $7,021,535 $17,735,735 $15,156,990 1.024.795 $16,181,763 Ifl Equivalent eoupon*i®6ut field i ^seei^ed ly©e@li©a <45,565 34,910 42*155 m,m 1,479,245 291,340 * $19,321,445 $ 41,810 5,799,700 14B0I0 123,070 58,190 4§,@s§ 174.615 2S,565 34,810 42,155 12,515 460,245 1PI.34© 17,01®,945 i „ g » oe 0 0 $4,356,490 651,655 $5,016,345 1,280,000 @03,600 103,600 s §19,381,445 |?001®o®45 s 8
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