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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9925 September 25, 1985 O FFE R IN G O F TW O SERIES O F TR EA SU R Y BILLS $6,8©©,©©©,©©© off 91=Day Bills, To Be Issued ©ctotoer 3, 1985, Due Jauuary 2, 1986 $6,800,000,©©© off 182-Oay Bills, To Be Issued October 3, 1985, Due April 3, 1986 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 Departm ent of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $13,600 million, to be issued October 3, 1985. This offering will not provide new cash for the Treasury, as the maturing bills are outstanding in the am ount o f $13,604 million. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, W ashington, D.C. 20239, prior to 1:00 p.m ., Eastern Daylight Saving time, M onday, September 30, 1985. The two series offered are as follows: 91-day bills (to m aturity date) for approxim ately $6,800 million, representing an additional am ount o f bills dated July 5, 1985, and to m ature January 2, 1986 (CUSIP No. 912794 JL9), cur rently outstanding in the am ount o f $7,070 million, the addi tional and original bills to be freely interchangeable. 182-day bills for approxim ately $6,800 million, to be dated October 3, 1985, and to m ature April 3, 1986 (CUSIP No. 912794 JZ8). The bills will be issued on a discount basis under competitive an d non competitive bidding, and at m aturity their par am ount will be payable w ithout 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 of the Treasury. The bills will be issued for cash and in exchange for Treasury bills m aturing October 3, 1985. In addition to the m aturing 13-week and 26-week bills, there are $8,311 million o f m aturing 52-week bills. The disposition o f this latter am ount was announced last week. 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 o f accepted competitive tenders. Additional 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 ag gregate am ount o f tenders for such accounts exceeds the aggregate am ount o f m aturing bills held by them . For purposes o f determining such additional am ounts, foreign and international m onetary authorities are considered to hold $1,463 million o f the original 13-week and 26-week issues. Federal Reserve Banks currently hold $1,538 million as agents for foreign and international m onetary authorities, and $5,370 million for their own account. These am ounts represent the combined holdings of such accounts for the three issues of m aturing bills. Tenders for bills to be m aintained on the book-entry records of 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 must state the par am ount 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 am ount 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 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 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 noncom petitive bidder may not have entered into an agreement, nor m ake an agreement to purchase or sell or otherwise dispose o f any nqncompetitive 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 of the Treasury. A cash adjustm ent will be made on all accepted tenders for the difference between the par payment subm itted and the actual issue price as determined 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 accompany tenders for such bills from others, unless an express guaranty o f payment by an incorporated bank or trust com pany accompanies the tenders. Public announcem ent will be m ade 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, noncompetitive 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 of 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 immediately-available funds or in Treasury bills m aturing on that date. Cash adjustm ents 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 paym ent for allotm ents 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 of 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 o f 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 of before m aturity, 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, September 30, 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 26, 1985) 13-veek bills M G S 0? ACCEPTED December 26, 1905 maturing COKPETIWE BIDS! Discount Investment life® Sate l i Friee L©^ High Average bJ \ J 6.71W 6,85% fioSISS <S,92% 7.07% ?,@2% 98.304 11.268 98,279 i 26°^gik bills s maturing March 1 1 9 1986 i Diecount Investment lat® late 1/ Prlea i & 9 7 .0 0 a/ 0 0 i > m iT i.m i 1 Issespting I tender of $leO0Q0Q00o tempting l tender of $1B0009QQQ. fenders oe feha high discount rat® for the Tenders at t h e h ig h discount rate for the Legation 1 51,525 3,175,065 23,180 52,965 136,375 44,045 210,060 2@el50 65,545 50,010 46,905 14130 268,375 $19,225,230 $4,514,390 Stpe Ceapeeitivs $16,670,365 ioneospgtlfeiv® 1,024,715 Subtotal j> Public $17,695,0^0 $1,959,525 1 ,0 2 4 . 7 1 5 12,984,240 ipSiioASO 1,389,450 140.700 140,700 $19,225,230 $4,514,390 Mianaapclis SLansai ©ity ©allaa San Francis©© Troaiury Toms Federal Reserve Foreign Official Institutions TOTAL! U E quivalent yi@ld0 I6c461 96,421 96,436 M ils mt% 9%0 Mile wirs allotted 34%., TIMBERS RECEIVED AND ACCEPTED ( I n fhoygsnd© ) s leealvad Accepted Received $ 90,625 14,773,620 23,180 52e965 136e3?S 44,045 U2I2&245 28,950 6S.S45 50,010 46,905 2,432,390 268,375 Uew fork Philadelphia Glavalasd Mehsend Atlanta Ohieoji© St a Louis 7,161 7.44% 7.41% §I 85,110 s 14,876,455 * 24,585 § 8 s o s 8 i a % j $m 78,510 44,550 % S O440 2 9 * 0 10 £0,525 51,715 34,180 * 2,173,200 8 391,815 * $18,134,335 Aeeagtad[ 48,510 3,405,955 24,585 3? dS40 ?©,510 43,050 128,140 29,610 40fl525 11,715 34 0ISO 18830 391.815 14,502,635 $ .Tie! 9 5 0 3 5 $1,330,805 1,083,530 $2,614,335 * 1,400,000 1,400,000 I 488,300 4llo300 * $18,834,535 $4,502,635 s $15,862,705 ! 1,083,530
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