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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States Circular No. 9957 November 20, 1985 O F F E R I N G O F T W O S E R IE S O F T R E A S U R Y R IL L S $7,4©©,©©©,©®© off 9©=Oay Fills, To Fe Issued November 29, 1985, Due February 27, 1986 $7,4©©,©©©,©©© off 181-Day Fills, To Fe Issued November 29, 1985, Due May 29, 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 Departm ent of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $14,800 million, to be issued November 29, 1985. This offering will result in a paydown for the Treasury of about $17,475 million, as the maturing bills total $32,278 million (including the 14-day cash management bills issued November 15, 1985, in the am ount of $18,006 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 Standard time, Monday, November 25, 1985. The two series offered are as follows: 90-day bills (to m aturity date) for approxim ately $7,400 million, representing an additional am ount o f bills dated August 29, 1985, and to m ature February 27, 1986 (CUSIP No. 912794 JU9), currently outstanding in the am ount of $7,263 million, the additional and original bills to be freely interchangeable. 181-day bills for approximately $7,400 million, to be dated November 29, 1985, and to mature May 29, 1986 (CUSIP No. 912794 KH6). 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 of $10,000 and in any higher $5,000 multiple, on the records either of the Federal Reserve Banks and Branches, or of the Departm ent of the Treasury. The bills will be issued for cash and in exchange for Treasury bills m aturing November 29, 1985. In addition to the maturing 13-week and 26-week bills, there are $8,535 million o f maturing 52-week bills. The disposition of this latter am ount was announced last week. 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 o f accepted competitive tenders. Additional amounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and international m onetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate am ount o f maturing bills held by them. For purposes o f determining such additional amounts, foreign and international m onetary authorities are considered to hold $2,585 million o f the original 13-week and 26-week issues. Federal Reserve Banks currently hold $2,645 million as agents for foreign and international m onetary authorities, and $5,005 million for their own account. These am ounts represent the combined holdings o f such accounts for the three issues of m aturing bills. Tenders for bills to be maintained on the bookentry records o f the Departm ent 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 am ount 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 m arkets 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 m ust state the amount 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 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 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 of 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 determ ined in the auction. No deposit need accompany 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 of the par am ount o f the bills applied for must 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 of 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, noncom petitive 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 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 must be made or completed at the Federal Reserve Bank or Branch on the issue date, in cash or other im m ediately-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 m aturing bills accepted in exchange and the issue price of the new bills. In addition, Treasury Tax and Loan Note O ption Depositaries may make paym ent for allotm ents of 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 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 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 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. 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 o f these Treasury bills and govern the conditions of 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 of the Public Debt. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Standard time, Monday, November 25, 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 enclqsed 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. Please note that the current offering is for 90-day and 181-day Treasury Bills. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED NOVEMBER 21, 1905) HANOI §F ACCEPTED COMPETITIVE 13-vaak bill® m at u r i n g Discount liv ts t a t a t H it® Lov High b illg F e b r u a r y 2 0 ^ i f |_ g L_ fe te 1/ ia i% 7.23* 7.24% 7.241 1M l 1AM Batygin^ MgvjyUJLt§6 & ii!G © H pt XaVSBEHSHlt P ric e fir& e e § 7,25% f j . n o a 1,26% 9BJ70 8 ?o26E mAn #06S% 7,64% 7.14% %„S§5 §6.330 98.330 TaadQra m ih& ba.gR iiseousit sote tin® 13-veek Mils m m allotted §5$. fearer® m the. high diaeount tata for the 26'week bills allotted 67%o TENDERS .RECEIVED M l ACCIFTED (Is Thousands) jjgeaMfm !©@£®a llew Ifss’k Philadelphia Cleveland Richmond 4tlasts Chicago it* L@m £® Minneapolis Rant®® City Balia® Isa Fraaeioe® Treasury TOTALS Tip ® Competitive I@a©@Bp©Eieave Subtotal,, Pufellg federal Rettrv® ?@S?ciig¥t Official TOTAL'® y Accepted I 42,335 22,564,275 32,435 4?d29S 80*405 57,975 1 . M 6 .0 7 5 A*i ?1* 38*160 83oQ7G 42,830 2,059,§90 S14a820 $ 42,-lSS 6,568,315 31,-560 47,220 43 n$©3 47,200 74s655 25-715 11,460 5.7•920 32,850 §1,540 334,620 O$ 31,335 l 22&614O500 5 ISs35§ □ 25fl®®0 | 62*AS3 SSD565 I aO 1&460d705 §0&i?0 O 41,iso % f5 t3SI,!SS tl0S4i t a 1,720,825 a 350,050 Aceoptsd % 31,335 8,351,SOS 11335 25,990 5®,60S 28,275 451,775 Afl.*7n ■*•=Pw" ^ IS.075 37,785 17sS4S 459i^S 330*03© $26,833,600 $7,408,815 3 $26,530,110 $7,442,770 S23.S02.f20 1*092,570 124,895,490 14.350.135 1•092*570 $3 p450o70S Q S4.4I5.S90 §45n§20 $5,261,070 1,449,310 1,649,310 S23.302.590 645,820 t □ 4 $24,342,410 lpiSOD000 a0 S0lo©@0 308.800 531,700 531.700 S26.ft53.600 &7,.408,8i5 A .$M?5SD?HiD 47,442.770 Equivalent ©®up©srt®®»t yield fQ l Eeetived 1 1,650,000
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