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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States _ Circular No. 9933 October 16, 1985 O FF E R IN G O F TW O SERIES O F TR EA SU R Y BILLS $6,900,000,000 of 91-Day Bills, To Be Issued October 24, 1985, Due January 23, 1986 $6,900,000,000 of 182~Bay Bills, To Be Issued October 24, 1985, Due April 24, 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 of Treasury bills totaling approximately $13,800 million, to be issued October 24, 1985. This offering will not provide new cash for the Treasury, as the maturing bills are outstanding in the amount of $13,786 million. Tenders will be received at Federal Reserve Banks and Branches and at the Bureau of the Public Debt, Washington, D.C. 20239, prior to 1:00 p.m., Eastern Daylight Saving time, Monday, October 21, 1985. The two series offered are as follows: 91-day bills (to maturity date) for approximately $6,900 million, representing an additional amount o f bills dated January 24, 1985, and to mature January 23, 1986 (CUSIP No. 912794 JP0), currently outstanding in the amount o f $15,888 million, the addi tional and original bills to be freely interchangeable. 182-day bills for approximately $6,900 million, to be dated October 24, 1985, and to mature April 24, 1986 (CUSIP No. 912794 KC7). 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 October 24, 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 $1,137 million as agents for foreign and international monetary authorities, and $2,413 million for their own account. Tenders for bills to be maintained on the book-entry records of 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 $1,000,000. 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 amount 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 o f 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 maturity 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 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 o f 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 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, October 21, 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 C o r r ig a n , President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 17, 1985) MMQE OF A O T F » Co m p e t i t i v e U -m o k b ilU b i d s : aatug&ag January 16 , leas Diieeunt Sa^©sEa®a£ feat® 1/ SlMl —i 7,181 7,211 7 a20^ s ig h 2 i- w e k M i l s m aturing A p ril 17. 1986 D iicount investm ent ftite P ric e 7.41* 7,45* 7,44* 98,115 90J77 98.180 i § % 1 ,3 5 % 7*372 7,361 7,741 7,761 7,711 96.284 §6,274 §6o27§ a t tli@ high d&occuat ra te fo r the M ile a llo tte d 121, T e s t e i a t th e high discount rat© fo r the 26-vmak kill® were a llo tte d 151, TIWDSM HCEIVED AWB ACCEPTED (Is Thousands) geeeivad Id e a tio n Boston Accepted 8 gmenivtd Ace@§>ted 42,330 1601050130 28,945 157,645 61,185 73s 625 1,850,620 70,60S 41i695 77,315 39,080 1,389,920 360bS55 | 42,330 Ss8OSoO50 IS,945 57 g645 41,685 53,105 297p420 50,605 16,695 66s200 29,010 148,160 360,855 8$ 68,990 * 24,260,005 ' 28,275 * 33?331 s 193,970 69,140 ! ,420 s 10379 s 68.775 s 45,695 1 i m,M5 30,840 i i 1,733,795 429sQ3§ i | 38,990 5,915,625 $20,091,020 $7aOQ7„7?S ! $28,459,820 S7.014.I55 f16,902,550 C@api>tlt&V© i@ae@sp®tltive 1,300,540 SubtotalP Fubli© iTlTWrolo $3,811,305 1,300,540 JJJT T 7M 5 s $25b468p175 ! 1,086,145 sHOsOao $4,023,210 1,016,145 is;109,35s 1,582,030 1,5S2d03O * 1,500,000 1,500,000 30,900 30,900 s 405,500 405,500 120,099,020 $7,007,775 s $38,459,820 $7,014,855 i®w P h lisd a lp h ia Cleveland liehmond A tIg a ta Chicago its Demins Miaasapolii Kansas C ity Dallas Son Francise© Trea®ury TOTAL! Ty£e Federal Egoerw $ 33,335 78*470 34,140 124s720 47.925 1S3695 51-3545 20flS40 194d845 42fc©35 F®tsign Cfficisl S a n t it u t t o o TOTALS U Eqpivslgnt ceupoB-iiiui yield