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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9899 July 24, 1985 O FF E R IN G O F TW O SERIES O F TR E A SU R Y M E L S $7,200,000,000 of 91-Bay Bills, To Be Issued August 1, 1905, Due October 31, 1905 $7,200,000,000 of 102-Bay Bills, To Be Issued August 1, 1905, Bue January 30, 1906 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 August 1, 1985. This offering will provide about $450 million of new cash for the Treasury, as the maturing bills are outstanding in the amount o f $13,959 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 29, 1985. The two series offered are as follows: 91-day bills (to maturity date) for approximately $7,200 million, representing an additional amount o f bills dated November 1, 1984, and to mature October 31,1985 (CUSIP No. 912794HN7), currently outstanding in the amount of $15,324 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $7,200 million, to be dated August 1, 1985, and to mature January 30, 1986 (CUSIP No. 912794 JQ8). 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 of the Department o f the Treasury. The bills will be issued for cash and in exchange for Treasury bills maturing August 1, 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 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 $1,813 million as agents for foreign and international monetary authorities, and $2,243 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 o f $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 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 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 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 of Federal Reserve Banks and Branches. A deposit o f 2 percent o f 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 of 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 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 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 29, 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 Co rrig an , President. (OVER) RESULTS O F LA ST W EEKLY O FF E R IN G O F TR EA SU R Y KILLS (TW O SERIES TO BE ISSU ED JU L Y 25, 1985) 13-week bills COMPETITIVE BIOS'. maturing October 24* 1985 Dieecmat Investment Rat© 6 Rate M Price Low 7,21% 7,45% 98,177 High 7,24% 7.48% 98.170 7.23% 7.47% 98.172 Average 26°w®ek bills aeturini January 23s 1986 Discount Investment Rate Rate 1/ Prie® 7,33% 1 , 72% 96.294 7.36% 7.75% 96.279 7.74% 96.284 7.35% RANGE or ACCEPTED Tenders at the high discount rate far the I3~we®k bills were allotted 47%, Tenders at the high discount rate fer the 26~w®ek billi were allotted 52%, Location Boston New York Philadelphia Cleveland Eiohaoad Atlanta Chicago St* Louis Minneapolis Kansas City Dallas San Francisco Treasury TOTALS Mi Competitive Noneompetitive Subtotals, Public Federal Reserve Foreign ©ffioial Institutions TOTALS TENDERS RECEIVED m> ACCEPTED (In Thousand!) Received Received Accepted Accepted 8 51,385 16,324,880 42,425 63s150 46s550 55*260 1,290,500 97,715 54.640 69,625 44,055 1*012,760 313,440 $ 51,385 6,018,285 36,365 63,045 46,550 47,610 333,220 56,915 54,110 64,615 34,055 80,760 313,440 $ 47d475 17.262,955 24,380 36*840 52*340 50*680 1,104,945 71,305 36,770 54*535 32*775 1*231*400 358*010 $ 47,475 6*074*795 24*380 36*840 47*340 42*080 174*285 51*305 26*610 50.055 22*775 273*840 358*010 $19,466,785 $7,200,355 $20,364,410 $7,229,790 $16,716,095 1,195,985 $17*912*080 $4,449,665 1,195,985 $5,645,650 $4,513,040 1,105,420 $5,618,460 1,184,435 1,184,435 S $17*64?*660 : 1*105*420 $18,753,080 ! 1*100*000 370,270 $19,466,785 370,270 ! 511*330 $7,229,790 $7,200,355 511*330 : $20,364,410 1.100,000 An additional $35,130 tbeueaad of 13-week bills end an additional $59,070 thousand of 26°week bills will be issued to foreign official institutions for eashc 1/ Equivalent toupon-issue yield
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