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FED ER A L R E SE R V E BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 5 7 0 3 T L September 27, 1965 J Results of Treasury’s One-Year Bill Offering To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department and released for publication in morning newspapers, Saturday, September 25: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, of 365-day Treasury bills to be dated September 30, 1965, and to mature September 30, 1966, which were offered on September 16, were opened at the Federal Reserve Banks on September 24. The details of this issue are as follows: Total applied for Total accepted . . $2,969,748,000 $1,000,359,000 (includes $56,988,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: High ....................... 95.722 ....................... 95.698 Average ................. 95.705 Low Equivalent rate of discount approx. 4.219% per annum Equivalent rate of discount approx. 4.243% per annum Equivalent rate of discount approx. 4.236% per annum1 (40 percent of the amount bid for at the low price was accepted.) Federal Reserve District Boston .........................................................$ New Y o r k .................................................. P h ila d elp h ia .............................................. Cleveland .................................................. Richmond .................................................. Atlanta ...................................................... Chicago ...................................................... St. L o u i s .................................................... Minneapolis .............................................. Kansas City .............................................. Dallas ......................................................... San Francisco .......................................... T o t a l ................................................ Total applied for Total accepted 82,730,000 2,261,017,000 13,038,000 51,672,000 4,732,000 33,866,000 303,828,000 25,758,000 9,647,000 16,511,000 32,877,000 134,072,000 $ $2,969,748,000 55,730,000 769,503,000 2,938,000 5,092,000 2,732,000 6,231,000 95,098,000 15,058,000 1,647,000 8,911,000 2,372,000 35,047,000 $1,000,359,000 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield o f 4.44 percent. Interest rates on bills are quoted in terms o f 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 o f days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed in terms o f interest on the amount invested, and relate the number o f days remaining in an interest payment period to the actual number o f days in the period, with semiannual compounding if more than one coupon period is involved. A lfred H a y e s , President.
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