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TREASURY NEWS t e p a r t m e n t o f t h e T r e a s u r y • W a s h in g t o n , D.C. • T e le p h o n e RESULTS OF AUCT I O N OF 5-YEAR 2-MONTH NOTES Auction datei August 29* 1984 The D e p a r t m e n t of the Treasury has a c c e p t e d $ 6*531 m i l l i o n of $ 1 6 * 7 3 8 m i l l i o n of tenders received f r o m the p u b l i c for the 5-year 2“m o n t h n o t e s * Series K-1989* a u c t i o n e d t o d a y 0 The notes will be issued Septe m b e r 4* 1984* and m a t u r e N o v e m b e r 15* 1 9 8 9 c The interest rate on the notes w i l l b e l 2 - 3 / 4 % 0 The range of accepted c o m p e t i t i v e bids* and the c o r r e s p o n d i n g prices at the 12-3/4% interest rate are as follows? Yield Low High Average Price 12o 77% 1/ 99 o780 99 o742 99.742 12 o78% 12 o78% Tenders at the high yield were a l l o t t e d 96%«, T E N D E R S R E C E I V E D A N D A C C E P T E D (In Thousands) Received Location Boston New York P h i l a delphia Cleveland Ri chmond Atlanta Chicago S t e Louis Minne a p o l i s Kansas City Dallas San F r a n c i s c o T reasury Tota l s $ 281,246 14*443*135 16*989 162*593 30*930 46*780 876*870 85*943 26*268 40*020 4*212 719*568 3*663 $16,738,217 A c cepted $ 44,906 5*983*634 11*989 100*593 13*930 27*580 134*030 73*443 20*436 38.720 4*212 73*548 3*663 $6,530,684 The $6*531 mill i o n of accepted te n d e r s includes $ 5 2 2 million of n o n c o m p e t i t iv e tenders and $ 6 * 0 0 9 m i l l i o n of compet tive tenders from the p u b l i c » 1/ Excepting 1 tender of $100,000. Federal Reserve Bank of New York [Ref. Cir. No. 9720] 2041 FEDERAL RESERVE BANK OF NEW YORK F iscal A g e n t o f th e U n ite d S tates Circular No. 9721 August 24, 1984 Offering of $8,250,000,000 of 364-Day Treasury Bills Dated September 6,1984 Due September 5,1985 To All Banking Institutions, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice issued by the Treasury Department: The Department of the Treasury, by this public notice, invites tenders for approximately $8,250 million of 364-day Treasury bills to be dated September 6, 1984, and to mature September 5, 1985 (CUSIP No. 912794 HL1). This issue will provide about $475 million new cash for the Treasury, as the maturing 52-week bill was originally issued in the amount of $7,773 million. In accordance with provisions o f the Tax Reform Act o f 1984 and the regulations thereunder, these securities do not qualify fo r the repeal o f the 30 percent withholding tax on interest received by foreign investors. The bills will be issued for cash and in exchange for Treasury bills maturing September 6, 1984. In addition to the maturing 52-week bills, there are $12,685 million of maturing bills which were originally issued as 13-week and 26-week bills. The disposition of this latter amount will be announced next week. Federal Reserve Banks as agents for foreign and international monetary authorities currently hold $1,803 million, and Federal Reserve Banks for their own account hold $5,017 million of the maturing bills. These amounts represent the combined holdings of such accounts for the three issues of maturing bills. Tenders from Federal Reserve Banks for themselves and as agents for foreign and international monetary authorities will be accepted at the weighted average bank dis count rate of accepted competitive tenders. Additional amounts of the bills may be issued to Federal Reserve Banks, as agents for foreign and in ternational monetary authorities, to the extent that the aggregate amount of tenders for such accounts exceeds the aggregate amount of maturing bills held by them. For purposes of determining such additional amounts, foreign and international monetary authorities are considered to hold $75 million of the original 52-week issue. 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. This 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. 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, Thursday, August 30, 1984. Form PD 4632-1 should be used to submit tenders for bills to be maintained on the book-entry records of the Department of the Treasury. 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 Government securities and report daily to the Federal Reserve Bank of New York their positions in and borrowings on such securities may sub mit 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 transactions. 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 bills 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 $1,000,000 or less without stated yield from any one bidder will be accepted in full at the weighted average bank discount rate (in two decimals) of accepted com petitive bids. 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 September 6, 1984, in cash or other immediately-available funds or in Treasury bills maturing September 6, 1984. 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 portion 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. T en d ers will b e received p rio r to 1:00 p .m ., E a ste rn D ay lig h t Saving tim e, T h u rsd a y , A u g u st 30, 1984 a t th e Securities D e p a rtm e n t o f this B a n k ’s H e a d O ffice, a t o u r B u ffa lo B ran ch , o r a t th e B u re a u o f th e P u b lic D eb t. A te n d e r fo rm is enclosed. P lease be sure to use th a t fo rm to su b m it th e te n d e r a n d re tu rn it in th e en closed envelope. F o rm s fo r su b m ittin g ten d ers directly to th e T re a su ry a re available fro m th e G o v e rn m e n t B o n d D ivision o f th is B an k . T en d ers n o t req u irin g a d ep o sit m ay be su b m itte d by te le g ra p h , su b ject to w ritte n c o n firm a tio n ; n o ten d ers m ay be su b m itte d by telep h o n e. S ettle m ent m u st be m a d e in cash o r o th e r im m ed iately av ailab le fu n d s o r in T re a su ry securities m a tu rin g o n o r b e fo re th e issue d ate. Treasury Tax and Loan N ote Option Depositaries may make paym ent fo r Treasury bills by credit to their Treasury Tax and Loan N ote Accounts. A n t h o n y M . So l o m on , P resident.
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