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STANDARD TERMS OF TREASURY BILL OFFERINGS AS PRESCRIBED BY THE TREASURY DEPARTM ENT 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 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 transactions 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 Government 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 noncompetitive 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 accompany 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 investment securities for bills to be maintained on the bookentry 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. Subject to these reservations, noncompetitive tenders for each issue 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 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. (Over) Settlement for accepted tenders for bills to be maintained on the book-entry 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 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, 27-76, and 2-86, as applicable, the Treasury’s single bidder guidelines, and the offering circular, prescribe the terms of each series of Treasury bills and govern the conditions of their issue. Copies of the circulars, guidelines, and tender forms may be obtained from our Government Bond Department or from the Bureau of the Public Debt. FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States (Revised Jan. 1987) 10# From DOT BPD DC 03 0*3^03^ 202 376-4365 3K3I 60/10 < 01/09/07 IS*IS > Pegs NOTICE TO ALL FISCAL DEPARTMENTS THE FOLLOWING ANNOUNCEMENT REPRESENTS THE FIRST 52-WEEK ©ILL OFFERING TO BE AVAILABLE IN TRg&SURY DIRECT, WE ARE TELECOPYING ALL 3 PAGES OF THE OFFERING ANNOUNCEMENT TO ALERT YOU TO THE CHANGE MADE IN THE LAST PARAGRAPH OF THE THIRD PAGE. THIS CHANGE IDENTIFIES THE TREASURY DIRECT REGULATIONS WHICH APPLY TO THIS OFFERING OF ©ILLS * PLEASE NOTE THAT THIS CHANGE IS BEING MADE ONLY TO THE 52-WEEK ©ILL OFFERING AND NOT TO 13-WEEK AND 26“W1£K BILL OFFERINGS AT THIS TIMB o [3 STAGES TO FOLLOW] 1 28 # 8 ^ 02 FOR RELEASE AT 12:00 NOON ^ S ^ d 21 68/18 January 9, 1987 TREASURY'S 52-WEEK 11LL OFFERING The Department of the Treasury, by thi© public notice, invites tender® for approximately $9,750 million of 364-day Treasury bills to be dated January 22, 1987, and to matur© January 21, 1988 (CUSIP No. 912794 NX S), Thin IgEue will provide ©bout $550 million of new cash for the Treasury, as fch© maturing 52-week bill is outstanding in th© amount of $9,189 million. Tenders will be received at Fuderal Resarv^ Banks and Branches and at the Bureau of the Public Debt, Washington, D. e. 20239, prior to 1:00 p.m., Eastern Standard time, Thursday, January 15, 1917. ; The bills will be issued on © diicount basis under competitive and noncompetitiv© 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 th© records either of the Federal Reserve Banks ©nd Branches, ©r ©£ the Department of the Treasury, This offering represents the first 52-week bill for which book°entry accounts to be maintained by the Department of the Treasury will be held in the TREASURY DIRECT Book-entry Securities System. The bills will be issued for cash and in exchange for Treasury bills maturing January 22, 1987. In addition t© the maturing 52-week bills, there §r© $15,234 million of maturing 13-week and 26-week bills and $4,010 million of maturing 79-day cash management bills. The diiposition of these two latter amounts will be announced next week. Federal Reserve Banks currently hold $2,226 million ©s agents for foreign and international monetary authorities, and $6,405 million for their own account. These amounts represent the combined holdings of such accounts for th© four issues of maturing bills. 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 rati of accepted competi tive tenders. Additional amounts of the bills may bi issued to Federal Reserve Banks, as agents for foreign and international monetary authorities, to the extent that the aggregate amount of tenders for such account® exceeds the aggregate amount ©f maturing bills held by them. For purposes of determining such additional amounts, foreign and international monetary author!ties are considered to hold $180 million of th© original 52-weak issue, T@nd©rs for bills to be maintained on the book-entry records of the Department of the Treasury should be submitted on Form FD 1X76^3. 18# l * \ 21 60/10 TREASURY5i 13-, 26-, AND &2-WEEK BILL OFFERINGS , PAGE § Each tendo? muot statQ tho p&r amount ©£ bil&g bid for, which must b© a minimum of fl0*000o Tenders ovs? fl0,00Q must be in multiples of $5,000, Competitive tenders must also show the yi@Xd desired, expressed on a bank discount sat© baiis with two decimal©, e=g», 7,lit* Fraction© may not be uied, b ©ingle bidder, as defined in Treasury0a single bidder guidelinas, shall not submit noncompetitivo tendors totaling mores than §1,000*000. Banking institutions and dealers who make primary markets in Government securities and report daily to the Federal Reserve lank of New York their positions in and borrowing® on such securitio© may submit tenders for account of customer©* if the names of th® customers and the amount for each customer are furnished. Others are only permitted to submit tenders for their own account. Each tender must state tht amount of any net long position in the bill© being offered if such position is in excess oi $200 million* Thi© information should'reflect positions held as of 12830 p.m* g&sttrn time on the day of the auction* Such position® would ineludo bill® acquired through nwh©n issued* trading, and futures and forward transactions m well as holdings of outstanding bills with the same maturity d&t© a© the new offering, e,g,# bills with three months to maturity previously offered as six-month bill©* Dealers, who mak© primary markets in Government 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 &ach customer whose net long position in the bill being offered exceeds $200 million* A noneempatitivd bidder may not have entered into an agreement, nor make an agreement to purchase or sell or otherwise dispose of any noncompetitiv^ 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 accompany 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 ©ubmitt^i and the actual issue price a© determined in the auction* N o deposit need accompany tenders from incorporated banka and trust companies and from responsible and recognized dealer© in investment securities for bills to b@ maintained on the book-entry records of Federal Reserve Banks and Branches* b deposit of 2 per cent of th@ par amount of the bill© applied for must accompany tenders for Such bills from others, unl@i© an ©xpr^is guaranty ©£ payment by an incorporated bank or trust company accompanies the tender© * 4/85 10 JO 30# 8 -b s3 T 60/1® 0i?3J03J TREASURY'S 52-WEEK BILL OFFERING, Pag© 3 Public announcement will b© mad© by th© Department of th© Treasury of the ©mount and yield range of accepted bidu* Competitive bidders will be ©dvig©d of th© acceptance ©r rejection of their tender©. Th® S@cr@tary of the Treasury expressly reserves th© right t o accept or reject ©ny or ©11 t®nd©r©, in whole or in part, and the Secretary'© action shall to# Sinai, Subject t© these reservations, noncompetitive tender© for ttoh isauo f o r $1,000,000 ©r loss without stated yiold from ©ny ©ne bidder will b# accepted in full at th© weighted average bank discount rate (in two decimals) of accepted competitive bide for th® regpoetive i@©u©s, The calculation of purchase prices for accepted bide will to© carried to three dtcimai pieces on the basis of pried per hundred, ©.g#, 99.923, and the determinations ©f th® Secretary of th® Treasury shall be final. Settlement for ©coopted tenders for bills to to® maintained on the book-entry records of Federal Reserve Banks and iranch©e must b© made or completed at the Federal Reserve Bank or Branch on the issue date, in cash or other immediately-available fund© o r in Treasury bills maturing ©n that date. Cash adjustment® will be mad© for differences between the par vaiu® of th© maturing bills accepted in <§xghsng© and the i©sua price of the new bills, in addition, Treasury Tax end Loan Note Option Depositaries may make payment for allotments of bills for their own accounts and for ueeount of ©u®tom©r@ by credit to their Treasury Tax ©nd Loan Not# Accounts on th© settlement date. In general, if a bill is purchased ©t issue after July II, 1984, and held to maturity, the amount of discount is reportable as ordinary income in the Federal income tax return ©f th© owner at the time of redemption. Accrual-basis taxpayers, banks, and other persons designated in section 1281 of the Internal Revonu® Code must include in income the portion of the discount for th© period during the taxable year such holder h®ld the bill. If th© bill is sold or otherwise dispoied of before maturity, the portion of the gain ©qual to the accrued discount will b® treated ©© ordinary income. Any excess may be treated as capital gain. Department of th© Treasury Circulars, Public Debt Seri#§ Nos. 26-76, 27-76, and 2-86, as applicable, Treasury's single bidder guidelines, and this notice prescribe the t<§rms of thes© 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, ©r from the Bureau of the Public Debt, 1/87
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