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FEDERAL R E SER ¥E iAMK © F MEW YORK Fiscal Agent of the United States _ Circular No. 9982 January 8, 1986 OFFERING OF TWO SERIES OF TREASURY MILLS $7940©90©0,000 ©ff 91=Day Bills, T© Be !§§m©$ January 16, 1986, Dine April 17, 1986 $7,4(0)0,(0XD)D9(D)©© ©ff 182-D&iy Bills, T© Be Issued January 16, 1986, Dine July 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 of the Treasury, by this public notice, invites tenders for two series of Treasury bills totaling approximately $14,800 million, to be issued January 16, 1986. This offering will provide about $475 million of new cash for the Treasury, as the maturing bills are outstanding in the amount of $14,315 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 Standard time, Monday, January 13, 1986. The two series offered are as follows: 91-day bills (to maturity date) for approximately $7,400 million, representing an additional amount of bills dated April 18, 1985, and to mature April 17, 1986 (CUSIP No. 912794 KB9), current ly outstanding in the amount of $15,400 million, the additional and original bills to be freely interchangeable. 182-day bills for approximately $7,400 million, to be dated January 16, 1986, and to mature July 17, 1986 (CUSIP No. 912794 KW3). 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 of bills will be issued entirely in book-entry form in a minimum amount of $10,000 and in any higher $5,000 multiple, on the records either of the Federal Reserve Banks and Branches, or of the Department of the Treasury. The bills will be issued for cash and in exchange for Treasury bills maturing January 16, 1986. 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 of the bills may be issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount of maturing bills held by them. Federal Reserve Banks currently hold $881 million as agents for foreign and international monetary authorities, and $3,217 million for their own account. Tenders for bills to be maintained on the book-entry records of the Department of 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 of bills bid for, which must be a minimum of $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 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 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 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 of any non competitive awards of this issue being auctioned prior to the designated closing time for receipt of tenders. Payment for the full par amount of the bills applied for must accom pany all tenders submitted for bills to be maintained on the book-entry records of the Department of 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 of 2 percent of the par amount of the bills applied for must accompany tenders for such bills from others, unless an express guaranty of payment by an incorporated bank or trust company accompanies the tenders. Public announcement will be made by the Department of the Treasury of the amount and yield range of accepted bids. Competitive bidders will be advised of the acceptance or rejection of 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 without stated yield from any one bidder will be ac cepted in full at the weighted average bank discount rate (in two decimals) of 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 of price per hundred, e.g., 99.923, and the determinations of the Secretary of the Treasury shall be final. Settlement for accepted tenders for bills to be maintained on the bookentry records of 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 of 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 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 maturity, the amount of discount is reportable as ordinary income in the Federal income tax return of the owner at the time of redemption. Accrual-basis taxpayers, banks, and other persons designated in section 1281 of 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 of before maturity, 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 Standard time, Monday, January 13, 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. E. GERALD CORRIGAN, President. (OVER) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JANUARY 9S 1986) RANGE ©F ACCEPTED COMPETITIVE BIDS? Low High Average a/ 13-week bills maturing April 10, 19|§_ Diseoufit Investment Rate. Eats 1/ Fric® 1, 02% 7.06% 7.05% 7,24% 1.29% ?o2S% i 26-week bills s maturing July 1Q3 1986 Discount Investment Rat® Rate I f Price 98.226 98,215 98,218 7.09%®/ 7.11* 7*11% 7 .45 % 1A B % 7.48% 96.416 96.406 96.406 E x c e p tin g l t e n d e r o f 1 5 ^ 0 0 0 ^ 0 0 0 ^ Tenders a£ the high d ia c o u n t r a te f o r the l3-*week b i l l s were allotted 42%. Tender® at the high d is c o u n t re t® for the 2 6-w eek bills were allotted 66%, TETO R S RECEIVED M B ACCEPT""' location loston Hew Serk Philadelphia Cleveland Mebasnd Atlsnfcg Chisago it s -Louis Minneapolis Kansas City Dallas San Francisco Treaiury TOTALS lyge Competitive Noncompetitive Subtotals Public Federal Reserve Foreign Official ln@fitufcions TOTALS Received (In Thousands) Accepted s Received Accepted $ 66,020 22,660,385 41o565 51.53S 96o110 65s980 1,559,425 87,725 117,020 68,675 47,535 1,490,815 369fi440 $ 62,020 © p165 0565 41,565 50,820 46s110 53,180 141,620 47,725 38,020 68,675 37,535 280,655 S69o440 s s 42,570 16,022,010 17,615 82,180 SlpSGS 105o230 1e481 6215 76,750 68,860 59,865 31fl20S 1,279,400 388s6S0 $ 38,570 6p422s690 17p©15 320180 47,255 58s320 103*425 36,750 18,860 58*865 24,505 179,520 388,680 $26,722,230 $7,402,930 s $21,717,065 $7,427,235 $21,524,250 1o299 3445 $24,823,615 $4,204,950 1*219,445 $5,504,315 s $11,495,465 976*520 : 1 $19,471,985 $4,205,615 976.520 l5,182,135 1D71© 0S3S 1,718,535 t 1,650,000 1,650,000 180,000 1806000 a 595*100 5956100 $26,722,230 $7,402,930 s $21,717,085 $7,427,235 j/ Equivalent ©@up©n-iiiue fieldD i $ t * 1 t : s 1 s j
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