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FEDERAL RESERVE BANK OF MEW YORK 6 L) Fiscal Agent of the United States C ircu lar N oo. 9978~| Jan u ary 2 , 1986 OFFERING OF TWO SERIES OF TREASURY MELS $7,4CM5,fMMI)9CMI® off 91°Day Bills, To 1© Ss§M©d January 9, 1986, Due April 10, 1986 $7,4(iMI)9§IM]),®vIMl off 182-Day ®nll§9 To ®e Issued January 9 9 1986, Du© July 10, 1986 To A ll Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice issued by the Treasury Department: T he D epartm ent o f the T reasu ry, by this public n otice, invites tenders for tw o series o f T reasury bills totaling approxim ately $ 1 4 ,8 0 0 m illion, to be issued Ja n u a ry 9 , 1986. This offering will provide ab o u t $500. m illion o f new cash for the T reasu ry, as the m aturing bills are outstanding in the am ount o f $ 1 4 ,2 9 3 m illion. Tenders will be received a t Fed eral Reserve Banks and Branches and a t the B ureau o f the Public D ebt, W ashington, D .C . 2 0239, prior to 1:00 p .m ., E astern Standard time, M onday, January 6, 1986. The two series offered are as follows: 9 1 -day bills (to m aturity date) for approxim ately $ 7 ,4 0 0 million, representing an additional am oun t o f bills dated O ctober 10, 1 9 85, and to m ature A pril 10, 1986 (C U S IP N o . 9 1 2 7 9 4 K A 1), currently outstanding in the am ount o f $ 7 ,0 3 5 m illion, the addi tional and original bills to be freely interchangeable. 182-day bills (to m aturity date) for approxim ately $ 7 ,4 0 0 million, representing an additional am oun t o f bills dated Ju ly 11, 1985, and to m ature Ju ly 10, 1986 (C U S IP N o . 9 1 2 7 9 4 K N 3), currently outstanding in the am ount o f $ 8 ,5 1 4 m illion, the additional and original bills to be freely interchangeable. T he bills will be issued on a discount basis under com petitive and n on com petitive bidding, and at m aturity their par am ount will be payable w ithout in terest. B oth series o f bills will be issued entirely in book-entry form in a m inim um am oun t o f $ 1 0 ,0 0 0 and in any higher $ 5 ,0 0 0 multiple, on the records either o f the Federal Reserve Banks and B ran ches, o r o f the D epartm ent o f the T reasury. The bills will be issued for cash and in exchange for T reasury bills m aturing Ja n u a ry 9 , 1986. Tenders from Federal Reserve Banks for their own acco u n t and as agents for foreign and international m onetary authorities will be accepted at the weighted average bank discount rates o f accepted com petitive tenders. A dditional am ounts o f the bills m ay be issued to Fed eral Reserve B ank s, as agents for foreign and international m onetary authorities, to the extent th at the aggregate am ount o f tenders for such accoun ts exceeds the aggregate am oun t o f m aturing bills held by th em . Fed eral Reserve Banks currently hold $ 1 ,1 0 0 m illion as agents for foreign and international m onetary authorities, and $ 3 ,3 1 4 m illion for their own acco u n t. Tenders for bills to be m aintained on the book-entry records o f the D epartm ent o f the T reasury should be submitted on F o rm P D 4 6 3 2 -2 (fo r 26-w eek series) o r F o rm P D 463 2 -3 (for 13-week series). E a ch tender must state the par am ount o f bills bid for, which must be a minimum o f $ 1 0 ,(XX). Tenders over $ 1 0 ,0 0 0 must be in multiples o f $ 5 ,0 0 0 . Competitive tenders must also show the yield desired, expressed on a bank discount rate basis with two decimals, e .g ., 7 .1 5 % . Fractions m ay not be used. A single bidder, as defined in T reasury’s single bidder guidelines, shall not submit noncompetitive tenders totaling m ore than $ 1 ,0 0 0 ,0 0 0 . Banking institutions and dealers who m ake prim ary m arkets in Govern ment securities and report daily to the Federal Reserve Bank o f New Y ork their positions in and borrowings on such securities m ay submit tenders for account o f custom ers, if the names o f the custom ers and the am ount for each custom er are furnished. Others are only permitted to submit tenders for their own accoun t. E a ch tender must state the am ount o f any net long position in the bills being offered if such position is in excess o f $200 million. This inform ation should reflect positions held as o f 12:30 p .m ., Eastern tim e, on the day o f the auction. Such positions would include bills acquired through “ when issued” trading, and futures and forw ard transac tions as well as holdings o f 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-m onth bills. Dealers, who m ake prim ary m arkets in Govern m ent securities and report daily to the Federal Reserve B ank o f New Y ork their positions in and borrowings on such securities, when submitting tenders for custom ers, must submit a separate tender for each custom er whose net long position in the bill being offered exceeds $200 million. A noncom petitive bidder m ay n o t have entered into an agreem ent, nor m ake an agreem ent to purchase o r sell o r otherwise dispose o f any non com petitive aw ards o f this issue being auctioned p rior to the designated closing tim e fo r receipt o f tenders. P aym en t for the full par am oun t o f the bills applied fo r m ust acco m 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 T reasu ry. A cash adjustm ent will be m ade on all accepted tenders fo r the difference between the p ar paym ent subm itted and the actual issue price as determ ined in the auction. N o deposit need acco m p an y tenders from in corp orated banks and trust com panies and from responsible and recognized dealers in invest m ent securities for bills to be m aintained on the b ook-entry record s o f Fed eral R eserve Banks and B ran ches. A deposit o f 2 percent o f the par am oun t o f the bills applied for m ust acco m p an y tenders for such bills from others, unless an express gu aran ty o f paym ent by an in corp orated bank o r trust com pany accom panies the tenders. Public announcem ent will be m ade by the D epartm ent o f the T reasury o f the am oun t and yield range o f accep ted bids. C om petitive bidders will be advised o f the accep tan ce o r rejection o f their tenders. The Secretary o f the T reasury expressly reserves the right to accep t o r reject any o r all tenders, in whole o r in p art, and the S ecretary ’s action shall be final. Sub ject to these reservations, noncom petitive tenders for each issue for $ 1 ,0 0 0 ,0 0 0 or less w ithout stated yield from any one bidder will be a c cepted in full at the weighted average bank discount rate (in tw o decim als) o f accepted com petitive bids for the respective issues. The calculation o f purchase prices for accepted bids will be carried to three decim al places on the basis o f price per hundred, e .g ., 9 9 .9 2 3 , and the determ inations o f the Secretary o f the T reasury shall be final. Settlem ent for accepted tenders fo r bills to be m aintained on the bo ok entry record s o f Fed eral Reserve Banks and Branches m ust be m ade or com pleted at the Federal R eserve B ank or B ran ch on the issue date, in cash or other im m ediately-available funds or in Treasury bills m aturing on th at date. C ash adjustm ents will be m ade fo r 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, T reasury T a x and L o an N ote O ption D epositaries m ay m ake paym ent for allotm ents o f bills for their own accoun ts and for acco u n t o f custom ers by credit to their T reasury T ax and L o a n N ote A ccoun ts on the settlem ent date. In general, if a bill is purchased a t issue after Ju ly 18, 1984, and held to m aturity, the am ount o f discount is reportab le as ordinary in com e in the Fed eral incom e ta x return o f the ow ner at the tim e o f redem ption. A ccru al-b asis taxp ayers, banks, and other persons designated in section 1281 o f the Internal Revenue C od e m ust include in incom e the portion o f the discount for the period during the taxab le year such holder held the bill. If the bill is sold o r otherwise disposed o f before m aturity, the p o r tion o f the gain equal to the accrued discount will be treated as ordinary incom e. A n y excess m ay be treated as capital gain. Departm ent o f the Treasury Circulars, Public Debt Series— N os. 26-76 and 27 -7 6 , T reasury’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 form s m ay be obtained from any Federal Reserve B ank or B ran ch, or from the Bureau o f the Public Debt. This Bank will receive tenders for both series prior to 1:00 p.m., Eastern Standard time, Monday, January 6, 1986, 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 submit ted 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. ^ s~/ 0 8-~$ E . GERALD CORRIGAN, President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY WIO.S (TWO SERIES TO BE ISSUED JANUARY 2, 1986) RANGE OF ACCEPTED C O M PETITIV E 13 -w a ek B ID S, h i l l s fe stu tin g A p r il 3. O isc o u n t In vestm en t E ate 1986 1/ 2 6 -v eek M il® l su tu r in g J u ly ? D isc o u n t In vestm en t F rie® s E at® 3* la t e 1986 1/ P r ic e Low 6 ,9 8 ? a / 7. 20? 9 0 .2 3 6 l 7 .0 4 1 b / 7 .4 0 % § 6 .4 4 1 H ig h 7 ,0 5 % 7. 21? 9 8 .2 1 8 7 ,0 8 % 7 .4 4 1 9 6 .4 2 1 7 c 27% 9 8 .2 2 0 1 a 0 7 ,0 7 % 7 .4 3 ? 9 6 .4 2 6 7 ,0 4 % & / E x c e p tin g 1 ten d er o f $ i #1 4 5 ,0 0 0 . b / E & e e p tin g 1 ten d er o f $ 1 D0 0 0 , 0 0 0 . fon d er© a t th e h ig h d isc o u n t m t® fo r th e T en d ers a t th e h ig h d i§ c © u n t ra t© fo r th e TENDER8 R E C E IV E D (In R e c e iv e d L o c a tio n B o sto n M en X $ fo r k 3 6 ,0 9 0 h i l l s w ere a llo tt e d 91% . M il© m © H e tto d 61% . m T housands) 3 6 ,0 9 0 3 6 ,8 4 5 ,0 1 3 6 * 5 2 1 ,6 1 5 P h ila d e lp h ia 5 8 ,5 4 5 5 8 ,5 4 5 € l@ ¥ @ la a d 56*560 56*560 3 R e c e iv e d 8 $ 3 0 ,0 8 0 O <? 1 8 ,4 1 1 ,8 0 0 % A ccep ted $ 3 0 ,0 8 0 6 ,7 9 1 ,0 5 5 11*740 1 1 ,7 4 0 8 2 5 a155 25*151 55*540 45*540 9 2 ,7 6 0 37*760 1 £>3 2 7 g, 9 0 5 177*975 8 6 ,9 7 0 4 9 ,2 4 0 M c b so n i 49*575 4 9 ,5 7 5 A tla n ta 5 0 ,6 3 0 5 0 ,6 3 0 t 9 9 C h ic a g o 1 ,2 4 7 * 1 3 0 124 p6 8 0 8 8 9 ,6 2 5 54 s 175 % 1 1 ,3 9 0 1 1 ,3 9 0 9 1 3 ,4 9 5 5 2 ,7 5 0 52*750 £ 6 2 ,3 9 5 13*495 6 2 ,3 0 5 3 7 ,8 0 0 27*800 0 8 26*125 16*125 8 3 6 ,4 0 0 227*400 % 7 7 3 ,5 0 5 47*111 3 2 9 ,5 9 0 329*590 b Q 3 0 5 ,4 3 0 305*430 $ 1 9 ,7 0 1 ,9 0 0 $ 7 ,6 0 1 ,0 0 0 □ $ 2 1 ,2 2 2 ,9 0 0 $ 7 ,6 1 3 ,1 0 5 1 1 6 ,6 8 8 ,4 9 0 $ 4 ,5 8 8 ,3 9 0 9 $ 1 8 ,4 7 3 ,7 2 5 $ 4 ,8 6 1 ,9 3 0 1 a 1 3 7 fi © 0 0 1 ,1 3 7 ,6 0 0 3 8 2 0 .5 7 5 820*575 $ 1 7 (8 2 6 ,0 9 0 $ 5 ,7 2 5 ,9 9 0 1 $ 1 9 ,2 9 2 ,3 0 0 '$ '5 ,6 6 2 ,5 0 5 1*639*210 1 ,6 3 9 ,2 1 0 236*600 2 3 6 ,6 0 0 8 $ 1 9 ,7 0 1 ,9 0 0 $ 7 ,6 0 1 ,8 0 0 • i£ o L o u is M in n e a p o lis D a lla s San F r a n c ise s T r ssiB u r y TOTALS I m P u b lic F td e ts l te i@ r v @ F o r e ig n O f fic ia l I n s t it u t io n s TOTALS i t 1 H o n e o a p stifc iv ® If 0 , C o m p e titiv e S u b to ta l5 < m AND ACCEPTED A ccep ted $ 13-w eek H Equivalent coupon-issua ylaldo i 1*600*000 1 ,6 0 0 ,0 0 0 310*600 3 3 0 ,6 0 0 * $ 2 1 ,2 2 2 ,9 0 0 $ 7 ,6 1 3 ,1 0 5 i 4 1
@FedFRASER