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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9917 September 4, 1985 O FFE R IN G O F TW O SERIES O F TR EA SU R Y BILLS $7,20©,CM)®,TO® off 91~D&y Bills, To Be Issued September 12, 1985, Due December 12, 1985 $7,2©©,©©©,©©® off 182=Day Bills, To Be Issued September 12, 1985, Due March 13, 198© 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 D epartm ent o f the Treasury, by this public notice, invites tenders for two series o f Treasury bills totaling approxim ately $14,400 million, to be issued Septem ber 12, 1985. This offering will provide about $300 m illion of new cash for the Treasury, as the m aturing bills are outstanding in the am ount o f $14,112 million. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau o f the Public Debt, W ashington, D .C. 20239, prior to 1:00 p .m ., Eastern Daylight Saving time, Monday, September 9, 1985. The two series offered are as follows: 91-day bills (to m aturity date) for approxim ately $7,200 million, representing an additional am ount o f bills dated June 13, 1985, and to m ature December 12, 1985 (CUSIP No. 912794 JJ4), cur rently outstanding in the am ount of $7,035 m illion, the additional and original bills to be freely interchangeable. 182-day bills for approxim ately $7,200 million, to be dated September 12, 1985, and to m ature M arch 13, 1986 (CUSIP No. 912794 JW5). The bills will be issued on a discount basis under competitive and non competitive bidding, and at m aturity their par am ount will be payable without interest. Both series o f bills will be issued entirely in book-entry form in a m inim um am ount 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 D epartm ent o f the Treasury. The bills will be issued for cash and in exchange for Treasury bills m aturing September 12, 1985. Tenders from Federal Reserve Banks for their own account and as agents for foreign and international m onetary authorities will be accepted at the weighted average bank discount rates of accepted competitive tenders. A dditional am ounts o f the bills may be issued to Federal Reserve Banks, as agents for foreign and international m onetary authorities, to the extent that the aggregate am ount of tenders for such accounts exceeds the aggregate am ount of m aturing bills held by them . Federal Reserve Banks currently hold $1,079 million as agents for foreign and international m onetary authorities, and $3,548 million for their own account. Tenders for bills to be m aintained on the book-entry records o f the D epartm ent o f the Treasury should be subm itted on Form PD 4632-2 (for 26-week series) or Form PD 4632-3 (for 13-week series). Each tender m ust state the par am ount of bills bid for, which must be a minimum of $10,000. Tenders over $10,000 m ust 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 o f customers, if the names o f the customers and the am ount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state the am ount o f any net long position in the bills being offered if such position is in excess of $200 million. This inform ation 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 m aturity date as the new offering, e.g., bills with three m onths to m aturity 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 noncom petitive 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. Paym ent for the full par am ount o f the bills applied for m ust accom pany all tenders subm itted for bills to be m aintained on the book-entry records o f the D epartm ent o f the Treasury. A cash adjustm ent will be made on all accepted tenders for the difference between the par paym ent subm itted and the actual issue price as determ ined in the auction. No deposit need accom pany tenders from incorporated banks and trust companies and from responsible and recognized dealers in invest m ent securities for bills to be m aintained on the book-entry records of Federal Reserve Banks and Branches. A deposit o f 2 percent o f the par am ount o f the bills applied for m ust accom pany tenders for such bills from others, unless an express guaranty o f paym ent by an incorporated bank or trust com pany accompanies the tenders. Public announcem ent will be made by the D epartm ent o f the Treasury o f the am ount and yield range o f accepted bids. Com petitive bidders will be advised o f the acceptance or rejection o f 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, noncom petitive tenders for each issue for $1,000,000 or less w ithout 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 determ inations o f the Secretary o f the Treasury shall be final. Settlement for accepted tenders for bills to be m aintained on the bookentry records o f Federal Reserve Banks and Branches m ust be made or completed at the Federal Reserve Bank or Branch on the issue date, in cash or other imm ediately-available funds or in Treasury bills m aturing on that date. Cash adjustm ents will be m ade for differences between the par value o f the m aturing bills accepted in exchange and the issue price of the new bills. In addition, Treasury Tax and Loan N ote O ption Depositaries may make paym ent for allotm ents o f bills for their own accounts and for account o f customers by credit to their Treasury Tax and Loan Note A ccounts 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 income in the Federal income tax return o f the owner at the time o f redem ption. Accrual-basis taxpayers, banks, and other persons designated in section 1281 of the Internal Revenue Code m ust 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 m aturity, the p or tion o f the gain equal to the accrued discount will be treated as ordinary income. Any excess m ay be treated as capital gain. Departm ent 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 o f 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, September 9, 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 OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 5, 1985) RANGE OF ACCEPTED 13-wesk bill® COMPETITIVE BIDS! maturing December 5* Diaeoynt investment Rate 1/ Rate Low 7009%a/ 7,n% High 7.14* 7 .3 7 % Average 7.12* 7.33% 3J Excepting 1 tsm&m of $1[>000*000, A f 26-w«ek bill® maturing Mareh 6. 1986 Di®count Investment Prie© t late 1/ Price Rat© 1985 ! fO t 98,208 I 7.29* 98.195 l 7,31% 98.200 5 1 M 7,67% 7*70% 7.69* 96.315 96,304 96.309 Tinders a t the high disooynt ra te for the 13-week b ill® were a llo tte d 391, Tender© a t the high discount ra te for the 26-week bill® wer© a llo tte d 44%. TENDERS RECEIVED AND ACCEPTED (In Location T housands) Received Accepted 69,340 14*194*960 24P@5§ 47*735 49*595 40*160 859*245 74,60S 40D140 162*290 42*080 1*871*505 318,895 Received Accepted $ 49,340 3,165,730 24,035 47*735 41,993 39,160 180,943 34,603 40,140 162*290 39,030 236,325 118,895 «$ 70,720 * 17,299,621 « 20,843 ! 211,143 * 72*910 i 60*620 1 161*700 * 92*105 * 48*350 * ei*535 * 36*175 * 2,157,413 1 368,743 $ 50*720 5*975*060 20*845 137*145 65*110 43*260 143*060 52*905 34*350 61*535 28*375 233,813 368,745 $17,794,605 $7*207*145 * $21,339,690 17*216*125 M i Competitive $14,876,225 Noncompetitive 1*131*480 Subtotal* Public $16,007,705 $4,289,463 lfi131„4S0 $5,420,145 * $18,043,203 5 l *085*285 s $19,128,490 $3*720*440 1*085,285 $4,805,725 loston Mew York Phil®i@iphia Cleveland Richmond Atlanta Chicago 8£o L©uis Wnneapoli© Kama® City Salle© San Franei®eo Treasury TOTALS federal lea@rva Foreign Official Institution© TOTALS $ 1*776*100 1*776*100 * 1,750,000 1*750*000 10,800 IQnSOQ s 661*200 661*200 $17,794,603 $7*207*145 ' $21,539,690 $7,216,925 XJ E quivalent coupon-issue y ie ld . s
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