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FEDERAL RESERVE BANK O F N E W YO R K
Fiscal Agent of the United States
f Circular
L

No. 5 5 6 4 ]
October 28, 1964
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,200,000,000 of 91-Day Bills, Additional Amount, Series Dated August 6, 1964, Due February 4, 1965
(To Be Issued November 5, 1964)
$1,000,000,000 of 182-Day Bills, Dated November 5, 1964, Due May 6, 1965
To All Incorporated, Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Standard tim e:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate
amount of $2,200,000,000, or thereabouts, for cash and in ex­
change for Treasury bills maturing November 5, 1964, in the
amount of $2,200,920,000, as follows:
91-day bills (to maturity date) to be issued November 5,
1964, in the amount of $1,200,000,000, or thereabouts,
representing an additional amount of bills dated
August 6, 1964, and to mature February 4, 1965, originally
issued in the amount of $900,616,000, the additional and
original bills to be freely interchangeable.
182-day bills, for $1,000,000,000, or thereabouts, to be
dated November 5, 1964, and to mature May 6, 1965.
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 Stand­
ard time, Monday, November 2, 1964. 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
account 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 incorporated
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 Department

of the amount and price range of accepted bids. Those submit­
ting tenders will be advised of the acceptance or rejection
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 August 6, 1964 (91 days remain­
ing until maturity date on February 4, 1965) and noncompetitive
tenders for $100,000 or less for the 182-day bills without stated
price from any one bidder will be accepted in full at the aver­
age price (in three decimals) of accepted competitive bids for
the respective issues. Settlement for accepted tenders in accord­
ance with the bids must be made or completed at the Federal
Reserve Bank on November 5, 1964, in cash or other immedi­
ately available funds or in a like face amount of Treasury bills
maturing November 5, 1964. 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 disposi­
tion of Treasury bills does not have any special treatment, 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 taxation now or here­
after 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 taxation the amount of dis­
count 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 con­
sidered to accrue until such bills are sold, redeemed or other­
wise disposed of, and such bills are excluded from consideration
as capital assets. Accordingly, the owner of Treasury bills
(other than life insurance companies) 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 subse­
quent 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 Standard time, Monday, November 2,
1964, 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 weekly offering of Treasury bills (91-day bills to be issued October 29, 1964, representing an
additional amount of bills dated July 30, 1964, and maturing January 28, 1965; and 182-day bills dated October 29,
1964, maturing April 29, 1965) are shown on the reverse side of this circular.
A

lf r e d

H

ayes,

President.
( over )

19 14




FIFTIETH

ANNIVERSARY

19 6 4

RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
OCTOBER 29, 1964)

Range o f A ccepted Com petitive Bids
91-Day Treasury Bills
Maturing January 2 8,1965

182-Day Treasury Bills
Maturing April 29, 1965

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

H i g h ............................ ...........

99.101

3.556%

98.121

3.717%

L ow ............................ ...........

99.097

3.572%

98.116

3.727%

A v e r a g e ...................... ...........

99.098

3.567% x

98.117

3.724% !

1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields
of 3.65 percent for the 91-day bills, and 3.85 percent for the 182-day bills. Interest rates on bills are quoted in terms of bankdiscount, 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.

(43 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(86 percent of the amount of 182-day bills
bid for at the low price was accepted.)

Total Tenders A pp lied for and A ccepted (B y Federal Reserve Districts)
91-Day Treasury Bills
Maturing January 28,1965
Accepted

Applied, for

District

Boston ............................

$

35,491,000

182-Day Treasury Bills
Maturing April 29,1965

$

17,321,000

Applied for

$

34,188,000

Accepted

$

2,049,000

1,597,234,000

818,745,000

1,400,676,000

822,926,000

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

29,506,000

14,305,000

8,181,000

2,935,000

Cleveland

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

22,418,000

21,797,000

61,204,000

16,395,000

Richmond

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

14,089,000

12,218,000

6,840,000

4,181,000

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

24,593,000

18,523,000

18,628,000

12,975,000

Chicago ..........................

212,601,000

136,054,000

219,755,000

87,854,000

St. L o u i s ........................

34,565,000

26,615,000

13,327,000

7,857,000

Minneapolis

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

23,089,000

14,949,000

7,920,000

4,420,000

Kansas City .................

30,885,000

30,586,000

11,674,000

9,378,000

Dallas

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

62,518,000

52,635,000

10,185,000

5,055,000

San F r a n c is co ...............

117,750,000

36,400,000

109,431,000

24,676,000

New Y o r k .....................
Philadelphia

Atlanta

T

otal

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

$2,204,739,000

$1,200,148,000a

$1,902,009,000

a Includes $233,656,000 noncompetitive tenders accepted at the average price of 99.098.
b Includes $71,297,000 noncompetitive tenders accepted at the average price of 98.117.




$ 1,000,70 l,000b