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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
r Circular No. 6 2 5 1 “I
LNovember 27, 1968 -J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated September 5, 1968, Due March 6, 1969
(To Be Issued December 5, 1968)
$1,100,000,000 of 182-Day Bills, Dated December 5, 1968, Due June 5, 1969
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 time:
T h e T r e a s u ry D ep a rtm en t, b y this p u b lic n otice, invites
ten ders fo r tw o series o f T rea su ry bills to the a g g re g a te a m ou n t
o f $2,700,000,000, o r th ereabouts, f o r cash and in e x ch a n g e fo r
T re a su ry bills m a tu rin g D e ce m b e r 5, 1968, in the a m ou n t o f
$2,701,354,000, as fo llo w s :
91-day bills ( t o m aturity date) to be issued D e ce m b e r 5,
1968, in the a m ou n t o f $1,600,000,000, o r th ereabouts,
rep resen tin g an a ddition al a m ou n t o f bills dated S ep ­
tem b er 5, 1968, and to m ature M a rch 6, 1969, origin a lly
issued in the a m ou n t o f $1,102,679,000, the addition al
and orig in a l bills to be freely in terch an geable.
182-day bills, fo r $1,100,000,000, o r th ereabouts, to be dated
D e ce m b e r 5, 1968, and to m ature June 5, 1969.
T h e bills o f b o th series w ill be issued on a d iscou n t basis
under com p e titiv e and n o n co m p e titiv e b id d in g as h ereinafter
p ro vid ed , and at m atu rity th eir fa ce a m ou n t w ill be payable
w ith o u t interest. T h e y w ill be issued in bearer fo r m on ly , and
in den o m in a tio n s o f $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (m a tu rity v a lu e).
T e n d e rs w ill be re ceiv ed at F ed eral R eserve B anks and
B ra n ch es up to the c lo s in g h our, on e -th irty p.m., E astern
Standard tim e, M on d a y, D ecem b er 2, 1968. T en d ers w ill not
be receiv ed at the T re a s u ry D epa rtm en t, W a s h in g to n . E ach
ten der m u st be fo r an even m u ltiple o f $1,000, and in the case
o f co m p e titiv e ten ders the price offered m ust be exp ressed
on the basis o f 100, w ith n ot m ore than three decim als, e.g.,
99.925. F ra ctio n s m a y n ot be used. It is u rged that ten ders be
m ade on the prin ted fo rm s and fo rw a rd e d in the special en v el­
op es w h ich w ill be supplied b y F ed eral R eserv e B anks or
B ra n ch es o n a p p lica tion th erefor.
B a n k in g in stitu tions g en era lly m a y su b m it tenders fo r
a cco u n t o f cu sto m e rs, p ro v id e d the nam es o f the cu sto m e rs are
set fo rth in such ten ders. O th ers than b a n k in g in stitu tions w ill
not be perm itted to subm it ten ders ex cep t fo r their ow n
a ccou n t. T e n d e rs w ill be received w ith ou t d ep osit fro m in co r­
porated banks and trust com p a n ies and fr o m resp on sib le and
re co g n ize d dealers in in vestm en t securities. T e n d e rs fro m
oth ers m ust be a cco m p a n ied b y pa ym en t o f 2 p ercen t o f the
face a m ou n t o f T r e a s u ry bills applied fo r, u nless the tenders
are a cco m p a n ie d b y an exp ress gu a ra n ty o f pa ym en t b y an
in co rp o ra te d bank o r trust co m p a n y .
Im m ed ia tely after the clo s in g h our, ten ders w ill be op en ed
at the F ed era l R e se rv e B anks and B ra n ch es, fo llo w in g w h ich

p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D e p a rt­
m en t o f the a m ou n t and price range o f a ccep ted bids; T h o s e
su b m ittin g ten ders w ill be advised o f the a cce p ta n ce o r r e je c ­
tion th ereof. T h e S ecreta ry o f the T rea su ry ex p re s sly reserves
the rig h t to a ccep t o r re je ct a n y o r all ten ders, in w h o le o r in
part, a n d his a ction in any such resp ect shall be final. S u b je ct
to th ese reserva tion s, n on com p etitiv e ten d ers fo r each issue
fo r $200,000 o r less w ith ou t stated price fro m a n y o n e b id d e r
w ill be a ccep ted in full at the a vera ge price (in three d e cim a ls)
o f a ccep ted co m p e titiv e bids fo r the resp ective issues. S ettle­
m en t f o r a cce p te d ten ders in a cco rd a n ce w ith the bids m u st
be m ade o r com p le te d at th e F ed eral R eserve B a n k on D e ­
cem b er 5, 1968, in cash o r o th e r im m ediately available fun ds
or in a like fa ce a m ou n t o f T rea su ry bills m aturing D e ce m b e r
5, 1968. Cash and ex ch a n ge ten ders w ill receive equal trea t­
m en t. Cash adju stm en ts w ill be m a d e fo r differen ces b e tw e e n
the pa r valu e o f m a tu rin g bills a ccep ted in ex ch a n g e and the
issue p rice o f the n ew bills.
T h e in co m e d eriv ed fr o m T r e a s u ry bills, w h eth er in terest
o r ga in fr o m the sale o r oth er d isp osition o f th e bills, d oes n ot
have a n y ex em p tion , as such, and loss fr o m the sale o r o th e r
disp osition o f T re a s u ry bills d oes n ot have any special treat­
m ent, as such, u n d er the In tern a l R even u e C o d e o f 1954. T h e
b ills are s u b je ct to estate, inheritance, g ift o r oth e r e x cis e
ta xes, w h eth er F ederal o r State, but are exem pt fr o m all ta x a ­
tion n o w o r h erea fter im p osed on the prin cip al o r interest
th e re o f b y a n y State, o r any o f the p ossession s o f the U n ited
States, o r b y a n y loca l ta x in g authority. F o r p u rp oses o f ta x a ­
tion the a m ou n t o f d iscou n t at w h ich T re a s u ry bills are o r ig i­
nally s o ld b y the U n ited States is con sid ered to be interest.
U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R e v e n u e
C ode o f 1954, the a m ou n t o f d iscou n t at w h ich b ills issued
h ereu n der are s o ld is n ot co n sid e re d to a ccru e until such bills
are sold , red eem ed or oth erw ise d isp osed o f, and such bills
are e x clu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly ,
the o w n e r o f T rea su ry bills (o th e r than life in su rance c o m ­
pa n ies) issued h ereun der n eed in clu d e in his in com e ta x return
on ly the differen ce b etw een th e price paid fo r su ch bills,
w h eth er on origin a l issue o r on subsequen t pu rch ase, and the
a m ou n t actu a lly received either u p on sale o r red em p tio n at
m a tu rity d u rin g the taxable yea r f o r w h ich the return is m ade,
as ord in a ry gain o r loss.
T r e a s u ry D ep a rtm en t C ircu lar N o . 418 (cu rre n t re v is io n )
and this n o tice prescrib e the term s o f the T r e a s u ry bills a nd
g ov e rn th e co n d itio n s o f th eir issue. C op ies o f the circu la r
m a y be ob ta in ed fro m a n y F ed era l R eserv e B an k o r B ra n ch .

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, December 2, 1968,
at the Securities Department o f 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 the enclosed envelope marked
“ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be
submitted by telephone. Payment fo r 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 (90-day bills to be issued November 29, 1968, representing an
additional amount of bills dated August 29, 1968, maturing February 27, 1969; and 181-day bills dated November 29,
1968, maturing May 29, 1969) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
(o v e r )

RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES
TO BE ISSUED NOVEMBER 29, 1968)

Range o f Accepted Competitive Bids
90-Day Treasury Bills
Maturing February 27,1969

181-Day Treasury Bills
Maturing May 29,1969

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

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

98.649

5.404%

97.208

5.553%

L o w .........................................

98.632

5.472%

97.188

5.593%

Average

98.638

5.448%!

97.198

5.573%!

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

1 T h e s e rates are on a bank d iscou n t basis. T h e equivalent cou p on issue yield s are 5.60 p ercen t fo r the 90-day bills, and
5.81 p e rce n t fo r the 181-day bills.

(32 percent of the amount of 90-day bills
bid for at the low price was accepted.)

(89 percent of the amount of 181-day bills
bid for at the low price was accepted.)

Total Tenders Applied for and Accepted (By Federal Reserve Districts)
90-Day Treasury Bills
Maturing February 27,1969
Applied, for

District

Boston ........................ ...........
New York .................. ...........
Philadelphia................ ...........
Cleveland .................... ...........

$

26,904,000
1,821,448,000
32,221,000
33,947,000

181-Day Treasury Bills
Maturing May 29, 1969
Applied for

Accepted

$

16,904,000

$

10,180,000

Accepted

$

10,180,000

1,082,248,000

1,531,842,000

785,532,000

17,221,000

16,566,000

6,566,000

33,947,000

55,323,000

30,713,000
5,241,000

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

14,066,000

14,066,000

5,241,000

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

39,824,000

35,784,000

26,713,000

16,263,000

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

179,091,000

142,823,000

133,336,000

73,336,000

St. Louis ...................... ...........

50,344,000

40,624,000

32,651,000

25,121,000

Minneapolis .................. ........

29,245,000

27,885,000

22,230,000

21,510,000

Kansas C i t y ..................

35,141,000

35,141,000

16,060,000

16,049,000

Dallas ............................

26,229,000

17,549,000

18,508,000

8,508,000

San F ran cisco..............

185,775,000

135,835,000

162,443,000

101,138,000

Richmond

T

otal

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

.........

$2,474,235,000

$1,600,027,000*

$2,031,093,000

a In clu d es $284,031,000 n o n com p etitiv e tenders accep ted at the average price o f 98.638.
b In clu d es $151,208,000 n on com p etitiv e tenders a ccep ted at the average price o f 97.198.




$1,100,157,000b

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