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FE D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 3 7 9 ~l L A ugust 28, 1963 J Results of Treasury’s One-Year Bill Offering To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was issued by the Treasury Department and released for publication in this morning’s newspapers: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, of 363-day Treasury bills to be dated September 3, 1963, and to mature August 31, 1964, which were offered on August 21, were opened at the Federal Reserve Banks on August 27. The details of this issue are as follows: Total applied for $2,631,441,000 Total accepted .. $1,000,910,000 (includes $64,020,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: Equivalent rate of discount approx. High........ 96.410 3.560% per annum Low ........ 96.391 Equivalent rate of discount approx. 3.579% per annum Average...... 96.395 Equivalent rate of discount approx. 3.575% per annum1 (88 percent of the amount bid for at the low price was accepted) Federal Reserve District Boston ................. New York ............... Philadelphia .............. Cleveland ................ Richmond ............... Atlanta................. Chicago ................ St. Louis ................ Minneapolis .............. Kansas City.............. Dallas .................. San Francisco............. T o t a l .............. Total applied for Total accepted $ 67,215,000 1,743,191,000 39,053,000 166,713,000 6,596,000 22,171,000 274,731,000 20,962,000 18,048,000 22,663,000 17,391,000 232,707,000 $ 1,915,000 714,471,000 1,003,000 99,077,000 1,496,000 13,171,000 92,306,000 6,062,000 4,848,000 4,863,000 2,391,000 59,307,000 $2,631,441,000 $1,000,910,000 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield of 3.74 percent. Interest rates on bills are quoted in terms of bank discount, with the return related to the face amount o f 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 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. A lfred H ayes, President.