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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
r Circular No. 5 3 6 7
L
A ugu st 7,1963

]

O FFE R IN G OF TW O SERIES OF T R E A S U R Y BILLS
$1,300,000,000 o f 91-Day Bills, Additional Amount, Series Dated M ay 16,1963, Due November 14,1963
(To Be Issued August 15, 1963)
$800,000,000 o f 182-Day Bills, Dated August 15, 1963, Due February 13, 1964
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Daylight Saving time:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate
amount of $2,100,000,000, or thereabouts, for cash and in ex­
change for Treasury bills maturing August 15, 1963, in the
amount of $2,101,543,000, as follows:
91-day bills (to maturity date) to be issued August 15,
1963, in the amount of $1,300,000,000, or thereabouts,
representing an additional amount of bills dated
May 16, 1963, and to mature November 14, 1963, origi­
nally issued in the amount of $800,667,000, the addi­
tional and original bills to be freely interchangeable.
182-day bills, for $800,000,000, or thereabouts, to be dated
August 15, 1963, and to mature February 13, 1964.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. They will be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Day­
light Saving time, Monday, August 12, 1963. Tenders will not
be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and in the case
of competitive tenders the price offered must be expressed
on the basis of 100, with not more than three decimals, e.g.,
99.925. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
Banking institutions generally may submit tenders for ac­
count of customers, provided the names of the customers are
set forth in such tenders. Others than banking institutions
will not be permitted to submit tenders except for their own
account. Tenders will be received without deposit from incor­
porated banks and trust companies and from responsible and
recognized dealers in investment securities. Tenders from
others must be accompanied by payment of 2 percent of the
face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an
incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which
public announcement will be made by the Treasury Depart­
ment of the amount and price range of accepted bids. Those

submitting tenders will be advised of the acceptance or rejec­
tion thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in whole or in
part, and his action in any such respect shall be final. Subject
to these reservations, noncompetitive tenders for $200,000 or
less for the additional bills dated May 16, 1963 (91 days re­
maining until maturity date on November 14, 1963) and noncom­
petitive tenders for $100,000 or less for the 182-day bills with­
out stated price from any one bidder will be accepted in full
at the average price (in three decimals) of accepted competi­
tive bids for the respective issues. Settlement for accepted
tenders in accordance with the bids must be made or completed
at the_ Federal Reserve Bank on August 15, 1963, in cash or
other immediately available funds or in a like face amount of
Treasury bills maturing August 15, 1963. Cash and exchange
tenders will receive equal treatment. Cash adjustments will
be made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
The income derived from Treasury bills, whether interest
or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exempt from all taxa­
tion now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of taxa­
tion the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. Accordingly,
the owner of Treasury bills (other than life insurance com­
panies) issued hereunder need include in his income tax return
only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made,
as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular
may be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, August
12, 1963, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective
series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked
“ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may
not be submitted by telephone. Payment for the Treasury, bills cannot be made by credit through the Treasury Tax
and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing
Treasury bills.
Results of the last offering of Treasury bills (91-day bills to be issued August 8, 1963, representing an addi­
tional amount of bills dated May 9, 1963, and maturing November 7, 1963; and 182-day bills dated August 8, 1963,
maturing February 6, 1964) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
( over)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
AUGUST 8, 1963)

Range of Accepted Competitive Bids
91 -D ay Treasury Bills
Maturing N ovem ber 7,1963

182-Day Treasury Bills
Maturing February 6,1964

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

H igh

............................ .............

99.183

3.232%

98.292

3.378%

L ow

............................ .............

99.173

3.272%

98.284

3.394%

....................... .............

99.178

3.253% 1

98.287

3.389% 1

A verage

1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields
of 3.33 percent for the 91-day bills, and 3.50 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 o f days in the period, with semiannual compounding if more than one coupon period is involved.

(41 percent of the am ount o f 91-day bills
bid for at the low price was accepted.)

(16 percent o f the amount 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 N ovem ber 7,1963
Applied for

District

B o s t o n .......................... ...........

$

42,651,000

182-Day Treasury Bills
Maturing February 6,1964
Applied for

Accepted

$

19,701,000

$

10,642,000

Accepted

$

2,988,000

................. ...........

1,401,603,000

888,103,000

1,321,557,000

689,123,000

P h ila d e lp h ia ............... ...........

29,161,000

14,161,000

8,407,000

3,021,000

..................... ...........

24,599,000

24,599,000

7,433,000

6,196,000

R ichm on d ..................... ..........

13,342,000

11,342,000

1,727,000

1,727,000

......................... ..........

26,658,000

25,868,000

5,927,000

5,327,000

C h i c a g o ....................................

200,311,000

106,131,000

124,496,000

35,560,000

..................... ........

34,815,000

28,225,000

8,258,000

5,678,000

M inneapolis ................. ..........

21,355,000

20,460,000

5,904,000

3,404,000

Kansas C ity ................. ........

36,093,000

35,475,000

11,487,000

10,635,000

............................ ........

28,856,000

23,266,000

10,891,000

8,051,000

119,740,000

103,300,000

61,257,000

28,810,000

N ew Y o rk

Cleveland

A tlan ta

St. L ou is

D allas

San F rancisco .............
T otal

............. ........

$1,979,184,000

$1,300,631,000 a

a Includes $246,810,000 noncompetitive tenders accepted at the average price of 99.178.
b Includes $60,122,000 noncompetitive tenders accepted at the average price of 98.287.




$1,577,986,000

$800,520,000 b


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102