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FED ER AL RESERVE BANK OF NEW YORK Fiscal A gen t o f the U nited States ["Circular No. 5 2 7 5 * 1 L December 24, 1962 J RESULTS OF BIDDING FOR 91-DAY AND 182-DAY TREASURY BILLS TO BE ISSUED DECEMBER 27, 1962 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today by the Treasury Department: T h e Treasury Departm ent announced last evening that the tenders for tw o series o f Treasu ry bills, one series to be an additional issue o f the bills dated Septem ber 27, 1962, and the other series to be dated D ecem ber 27, 1962, w hich were offered on D ecem ber 14, were opened at the Federal Reserve Banks on D ecem ber 21. Tenders were invited for $1,300,000,000, or thereabouts, o f 91-day bills and for $800,000,000, or thereabouts, of 182-day bills. T h e details o f the tw o series are as fo llo w s : Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing March 28, 1963 Price A pprox. equiv. annual rate 99.275 99.268 99.269 H igh ....................... ........ L o w ......................... ........ A verage ................. ........ 182-Day Treasury Bills Maturing June 27, 1963 2.868% 2.896% 2.894% i Approx. equiv. annual rate Price 98.5303 98.517 98.522 2.908% 2.933% 2.924% 1 a Excepting one tender of $400,000. 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields of 2.96 percent for the 91-day bills, and 3.01 percent for the 182-day bills. Interest rates on bills are quoted in terms of bank discount, with the return related to the face amount of the bills payable at maturity rather than the amount invested, and their length in actual number of days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed in terms of interest on the amount invested, and relate the number of days remaining in an interest payment period to the actual number of days in the period, with semiannual compounding if more than one coupon period is involved. (82 percent o f the am ount o f 91-day bills bid for at the low price was accepted.) (54 percent o f the am ount o f 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing March 28,1963 Applied for District B oston ............................ N ew Y o r k ..................... Philadelphia ................. Cleveland ..................... R ich m on d ..................... A t la n t a ............................ C hicago ......................... St. Louis ....................... M inneapolis ................. Kansas C ity ................. D a l l a s .............................. San F ran cisco ............. ......... ......... ........ ........ ........ ........ ........ ........ ........ ......... T o t a l s ............. . . . . $ 47,050,000 1,862,031,000 43,206,000 44,826,000 24,403,000 39,368,000 227,505,000 28,701,000 24,859,000 36,680,000 73,921,000 203,550,000 $2,656,100,000 182-Day Treasury Bills Maturing June 27, 1963 Applied for Accepted $ 26,213,000 850,624,000 27,906,000 31,668,000 17,053,000 29,046,000 72,626,000 18,421,000 9,679,000 25,846,000 27,985,000 168,361,000 $1,305,428,000b $ 21,824,000 1,022,326,000 8,132,000 32,018,000 4,268,000 7,472,000 106,876,000 7,306,000 5,130,000 21,964,000 34,225,000 48,788,000 $1,320,329,000 Accepted $ 15,824,000 624,733,000 3,132,000 20,318,000 4,268,000 7,347,000 54,676,000 4,306,000 4,630,000 11,366,000 6,925,000 42,788,000 $800,313,000c b Includes $218,557,000 noncompetitive tenders accepted at the average price of 99.269. c Includes $51,286,000 noncompetitive tenders accepted at the average price of 98.522. A lfred H a y e s , President.