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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
Circular No. 6 0 7 1 1
December 6, 1967 J

OFFERING OF TWO SERIES OF TREASURY BILLS
,500,000,000 of 91-Day Bills, Additional Amount, Series Dated September 14,1967, Due March 14,1968
(To Be Issued December 14, 1967)
$1,000,000,000 of 182-Day Bills, Dated December 14, 1967, Due June 13, 1968
To A ll 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 time:
The Treasury Department, by this public notice, invites
tenders for tw o series of Treasury bills to the aggregate amount
of $2,500,000,000, or thereabouts, for cash and in exchange
for Treasury bills maturing Decem ber 14, 1967, in the amount
of $2,400,635,000, as follow s:
91-day bills (to maturity date) to be issued Decem ber 14,
1967, in the amount of $1,500,000,000, or thereabouts,
representing an additional amount o f bills dated Sep­
tember 14, 1967, and to mature March 14, 1968, origi­
nally issued in the amount of $1,000,527,000, the addi­
tional and original bills to be freely interchangeable.
182-day bills, for $1,000,000,000, or thereabouts, to be
dated D ecem ber 14, 1967, and to mature June 13, 1968.
The bills of both series will be issued on a discount basis
under competitive and noncom petitive 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, M onday, D ecem ber 11, 1967. Tenders will not be
received at the Treasury Department, W ashington. Each tender
must be for an even multiple o f $1,000, and in the case of com ­
petitive tenders the price offered must be expressed on the
basis of 100, with not m ore than three decimals, e.g., 99.925.
Fractions may not be used. It is urged that tenders be made
on the printed form s 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 ow n 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 o f 2 percent of the face amount o f
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, follow ing which

public announcement will be made by the Treasury Department
of the amount and price range of accepted bids. Those sub­
mitting 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 each issue for
$200,000 or less without stated price from any one bidder will
be accepted in full at the average price (in three decimals) o f
accepted competitive bids for the respective issues. Settlement
for accepted tenders in accordance with the bids must be made
or com pleted at the Federal Reserve Bank on D ecem ber 14,
1967, in cash or other immediately available funds or in a like
face amount of Treasury bills maturing Decem ber 14, 1967.
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 o f
the new bills.
The incom e 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 o f 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 o f
taxation the amount o f 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 o f 1954, the amount of discount at which bills issued here­
under 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. A ccordingly,
the owner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e 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 ordi­
nary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms o f the Treasury bills and
govern the conditions of their issue. Copies o f 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, December 11
1967, 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 December 7, 1967, representing
an additional amount of bills dated September 7, 1967, maturing March 7, 1968; and 182-day bills dated December 7
1967, maturing June 6, 1968) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
( over)

RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TW O SERIES
TO BE ISSUED DECEMBER 7, 1967)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing March 7,1968

182-Day Treasury Bills
Maturing June 6, 1968

Price

A pprox. equiv.
annual rate

Price

High ...........................................

98.746

4.961%

97.190

5.558%

Low

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

98.736

5.000%

97.174

5.590%

Average .....................................

98.739

4.989% 1

97.179

5.580%!

Approx. equiv.
annual rate

1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.14 percent for the 91-day bills,
5.84 percent for the 182-day bills.

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

(46 percent of the amount of 91-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 7,1968
Applied for

District

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

$

19,161,000

182-Day Treasury Bills
Maturing June 6, 1968
Applied for

Accepted

$

9,161,000

$

28,253,000

Accepted

$

7,153,000

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

1,888,148,000

1,054,068,000

1,647,400,000

756,133,000

Philadelphia . . . ..........................

37,455,000

12,605,000

14,983,000

4,917,000

Cleveland .........

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

48,773,000

23,690,000

64,010,000

29,390,000

Richmond.........

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

20,456,000

17,279,000

20,584,000

9,604,000

Atlanta .............

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

57,263,000

34,261,000

43,433,000

23,323,000

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

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

247,267,000

135,089,000

277,607,000

78,917,000

St. L o u is........... ..........................

51,803,000

33,903,000

31,812,000

16,442,000

Minneapolis . . .

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

28,746,000

18,336,000

21,328,000

7,868,000

Kansas City . . .

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

26,729,000

20,487,000

13,787,000

11,287,000

26,129.000

13,929,000

14,174,000

8,874,000

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

309,780,000

127,320,000

238,498,000

46,823,000

T otal . . ..........................

$2,761,710,000

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

Dallas ............... ..........................
San Francisco

$1,500,128,000“

a Includes $216,041,000 noncompetitive tenders accepted at the average price of 98.739.
b Includes $133,936,000 noncompetitive tenders accepted at the average price of 97.179.




$2,415,869,000

$1,000,73 l,000l

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