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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9895 July 10, 1985 O FF E R IN G O F TW O SERIES O F TR E A SU R Y B ILLS $7,200,000,000 off 91-Bay Bills, To Be Issued July 18, 1985, Due October 17, 1985 $7,200,000,000 off 182-Bay Bills, To Be Issued July 18, 1985, Due Jamuary 16, 1986 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 o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approximately $14,400 million, to be issued July 18, 1985. This offering will provide about $475 million o f new cash for the Treasury, as the maturing bills are outstanding in the amount o f $13,923 million. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public Debt, Washington, D.C. 20239, prior to 1:00 p.m., Eastern Daylight Saving time, Monday, July 15, 1985. The two series offered are as follows: 91-day bills (to maturity date) for approximately $7,200 million, representing an additional amount of bills dated April 18, 1985, and to mature October 17, 1985 (CUSIP No. 912794 JC9), currently outstanding in the amount o f $6,735 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $7,200 million, to be dated July 18, 1985, and to mature January 16, 1986 (CUSIP No. 912794 JN5). 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 o f bills will be issued entirely in book-entry form in a minimum amount o f $10,000 and in any higher $5,000 multiple, on the records either o f the Federal Reserve Banks and Branches, or o f the Department o f the Treasury. The bills will be issued for cash and in exchange for Treasury bills maturing July 18, 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 o f accepted competitive tenders. Additional amounts o f the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount o f tenders for such accounts exceeds the aggregate amount of maturing bills held by them. Federal Reserve Banks currently hold $1,209 million as agents for foreign and international monetary authorities, and $2,709 million for their own account. Tenders for bills to be maintained on the book-entry records o f the Department o f 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 o f bills bid for, which must be a minimum of $10,000. Tenders over $10,000 must be in multiples o f $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,(XX). 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 o f customers, if the names o f 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 o f any net long position in the bills being offered if such position is in excess o f $200 million. This information should reflect positions held as o f 12:30 p.m., Eastern time, on the day o f the auction. Such positions would include bills acquired through “when issued” trading, and futures and forward transac tions as well as holdings o f 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 o f 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 o f any non competitive awards o f this issue being auctioned prior to the designated closing time for receipt o f tenders. Payment for the full par amount o f the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records o f the Department o f 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 o f Federal Reserve Banks and Branches. A deposit o f 2 percent of the par amount o f the bills applied for must accompany tenders for such bills from others, unless an express guaranty o f payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department o f the Treasury o f the amount and yield range o f accepted bids. Competitive bidders will be advised o f the acceptance or rejection o f their tenders. The Secretary o f 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) o f 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 o f price per hundred, e.g., 99.923, and the determinations o f the Secretary o f the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookentry records o f 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 o f 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 o f bills for their own accounts and for account o f 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 o f discount is reportable as ordinary income in the Federal income tax return o f the owner at the time o f redemption. Accrual-basis taxpayers, banks, and other persons designated in section 1281 o f the Internal Revenue Code must include in income the portion o f the discount for the period during the taxable year such holder held the bill. If the bill is sold or otherwise disposed o f before maturity, the por tion o f the gain equal to the accrued discount will be treated as ordinary income. Any excess may be treated as capital gain. Department o f the Treasury Circulars, Public Debt Series—Nos. 26-76 and 27-76, Treasury’s single bidder guidelines, and this notice prescribe the terms o f these Treasury bills and govern the conditions o f their issue. Copies o f the circulars, guidelines, and tender forms may be obtained from any Federal Reserve Bank or Branch, or from the Bureau o f the Public Debt. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Daylight Saving time, Monday, July 15, 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. (OVER) RESULTS O F LA ST W EEKLY O FF E R IN G O F TR EA SU R Y BILLS (TW O SERIES TO BE ISSU ED JU L Y 11, 1985) 13-week b ill© 26=-week bills saluting January 9. 1986 COMPETITIVE BIDS. suturing October 10._I98i_ Discount investment Discount Investment Est© 1/ Price Rate to te 1/ Price Low 6.8BJW 7.10% 98.261 1 .33% 6.97%b/ 96.476 High 6.94% 7.16% 91.246 7.01%'" 7.37% 96=456 Average 6=92% 7.14% 98*251 7,00% 7.36% 96,461 a/ E&cepting 3 tenders totaling $$,,805,000= h / Excepting 1 tender of $1*000*000* Tenders at the high discount rat© for the 13-week bills ©Hotted 61%, fenders at the high dlieount rate for the 26-week bills were ©Hotted 61%. m n g e of accepted Location SoBEon Hew fork Philadelphia €l@v®laad Mdbsond Atlanta Chicago St, Louis Minneapolis Kansas City ©alias San Francisco Treasury TOTALS TENDERS DECEIVED AND ACCEPTED (In Thousands) Accepted Received Received $ 43,615 $ 43,615 $ 36,745 16,958,070 5,938,210 17*050,360 27,730 27,730 22*060 50,600 50,600 146*405 44,470 41,030 58*220 60,220 53,940 46,735 1,095,450 1*000*930 284,950 55,865 35,865 46,720 21,915 11,915 23,955 73,980 73,980 65*830 42,555 40,605 34,545 1,577,445 262*055 1*178*205 344,880 344,880 403*735 $20,396,795 $7,205,375 $20,116,445 im. Competitive $17,286,775 1,183,885 Moocosapetitive Subtotal0 Public $18,470,660 Federal Reserve 1,717,935 Foreign Official 208,200 Institutions TOTALS $20,396,795 1/ Equivalent coupon^iisue y ie ld 0 Accepted $ 38,745 5*627*610 22*060 146,405 58*220 40*235 397,480 36,720 13,955 64*830 27,595 326*385 403*735 $7,204,175 $4,099,355 1,183,885 $5,283,240 1*717*935 $16,953,425 1,091,520 $18,044,945 1*600*000 $4,041,155 1,091,520 $5,132,675 1*600*000 208,200 471,100 $20,116,445 471*500 $7,204,175 $7,209,375
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