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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States _ Circular No. 9930 October 9, 1985 O FF E R IN G O F TW O SERIES O F TR E A SU R Y MILLS $7,©©©,®©®,,®©© off 91=Day Bills, To Be Issued October 17, 1985, Due January 16, 1986 $7,©©®,©©©,©©© off 182=Bay Bills, To Be Issued October 17, 1985, Due April 17, 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 $14,000 million, to be issued October 17, 1985. This offering will not provide new cash for the Treasury, as the m aturing bills are outstanding in the amount o f $13,963 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, Tuesday, October 15, 1985. The two series offered are as follows: 91-day bills (to m aturity date) for approxim ately $7,000 million, representing an additional am ount o f bills dated July 18, 1985, and to m ature January 16, 1986 (CUSIP No. 912794 JN5), cur rently outstanding in the am ount o f $7,283 million, the addi tional and original bills to be freely interchangeable. 182-day bills (to maturity date) for approximately $7,000 million, representing an additional am ount o f bills dated April 18, 1985, and to m ature April 17, 1986 (CUSIP No. 912794 KB9), cur rently outstanding in the am ount of $8,362 million, the addi tional and original bills to be freely interchangeable. 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 minimum am ount o f $10,000 and in any higher $5,000 m ultiple, on the records either of the Federal Reserve Banks and Branches, or o f the D epartm ent o f the Treasury. The bills will be issued for cash and in exchange for Treasury bills m aturing October 17, 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. 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 aggregate am ount o f tenders for such accounts exceeds the aggregate am ount of m aturing bills held by them. Federal Reserve Banks currently hold $1,126 million as agents for foreign and international m onetary authorities, and $3,082 million for their own account. Tenders for bills to be m aintained on the book-entry records o f the Departm 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 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 $1,000,000. Banking institutions and 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 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 of 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 o f 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 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 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 payment 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 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 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, 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 m ade 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 o f the new bills. In addition, Treasury Tax and Loan N ote O ption Depositaries m ay m ake 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 o f the Internal Revenue Code m ust 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 m aturity, the p or 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 of 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 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, Tuesday, October 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. President. Closing date ffor receipt off tenders is T uesday, O c to b e r 15, 1985 „ (OVER) R E S U L T S O F L A S T W E E K L Y O F F E R I N G O F T R E A S U R Y B IL L S (T W O S E R IE S T O B E IS S U E D O C T O B E R 10, 1985) 3©“&?®gk Mils J3°w©tk hills 8 MMQ% OF ACCEPTED 3 aatyrlai January f L 1 9 16 © a t i a r i n g: April 10„ 1986 COMPETITIVE BIDS? 8 BiesQunt Investment Biseoynt Xnva©fes®nt lit® Rate 1/ Prie® late 1st© 1/ Fries l 7.291 7.10**/ 7.33% 98.205 7.67% 96,315 96cl95 7.14% 7,m 7,33% High 7,72% 96.294 ?a« ?o37K 18,195 l 7.32S 1JI% i§02®§ Avertg<§ ©/ I t©ste ©f $ip0gJoOO0, rat® £©f the 1 3 -*we*k Milt allotted 83% Tender© st high T@nd©F© at feM® high liseount Fat® for the Z b - ’us@k bills m m allotted 341 0 O Q P L®§ati©n iQW Philadelphia Cltveland Richmond Atlanta Chicago §to Lottie Mlnnatpolia KunifiB Cits? Dalits S a n Francisco T F ® @ 0 t t F y TOTALS fEfTOERS DECEIVED MB ACCEPTED (In Theyssnii) Eecelvtd Accepted & & $ §6,100 16,105,065 32,710 56*685 46,320 n Bm 1,326,395 ^I3i!5 19,195 nMs> 45,175 1,227,330 3I9B135 §19,546,480 2 ZE£ Conpttitive §16,247,065 Koncompetifcive 1,343,680 iubtot&l, pyblie WOSOB 1,601,435 f@d@F©l !@i@Fv@ Official 354,100 XnBtitutione $19,546,480 Toms 1/ $ 56,300 5,870,375 32,710 56,615 46,310 64,975 248,775 51,115 19,195 69*645 39,725 16,160 359 335 §7,012,015 o $3,712,600 la343n6S0 $5,056,280 1,601,435 S54„3Q0 $7,012,015 & * Aeeetted $ 730<§15 16,257,911 27,760 8 35,711 62,160 fl 75,305 * l,Ml ,265 92Pg?§ 0 I7p5IO 56,570 36,825 1,317,915 460,345 119*163,890 $ 43,615 5,827,305 2?0760 35,715 4?0160 37,305 111,285 S2P§70 17PSB0 51fi570 26,825 174,955 460,345 $7,004,290 $16*112,175 ls156»@15 $17,§68,290 1,400,000 $3,832,675 1*156,015 htsSKim 1,600,000 3ISb6M $11s1S3pSf)@ 395,600 $7,904,290 □ D O O 4 9 a * a e 9 8 O 9 8 8 8 0 O e e A 9 ft P 8
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