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FED ER A L R E S E R V E BANK OF N EW YORK
Fiscal Agent of the United States
TCircular No. 6 2 8 7 1
L February 5, 1969 J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated November 14,1968, Due May 15,1969
(To Be Issued February 13, 1969)
$1,100,000,000 of 182-Day Bills, Dated February 13, 1969, Due August 14, 1969
To All Incorporated BanTcs 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 Standard time:
The Treasury Department, by this public notice, invites
tenders for tw o series of Treasury bills to the aggregate amount
of $2,700,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing February 13, 1969, in the amount of
$2,704,449,000, as follow s:
91-day bills (to maturity date) to be issued February 13,
1969, in the amount of $1,600,000,000, or thereabouts,
representing an additional amount of bills dated N o ­
vember 14, 1968, and to mature M ay 15, 1969, orginally
issued in the amount of $1,102,720,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $1,100,000,000, or thereabouts, to be
dated February 13, 1969, and to mature August 14,
1969.
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 am ount will be payable
without interest. T h ey 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
Standard time, M onday, February 10, 1969. Tenders will not
be received at the Treasury Department, W ashington. Each
tender must be for an even multiple of $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 enve­
lopes 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 incor­
porated 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 o f the
face amount of Treasury bills applied for, unless the tenders
are accom panied by an express guaranty of payment by an
incorporated bank or trust com pany.
Imm ediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, follow in g which

public announcement will be made by the Treasury D epart­
ment of the amount and price range of accepted bids. Th ose
submitting tenders will be advised o f the acceptance or rejec­
tion thereof. The Secretary of the Treasury expressly reserves
the right to accept or reject any or all tenders, in w hole or in
part, and his action in any such respect shall be final. Subject
to these reservations, noncom petitive 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 com petitive bids for the respective issues. Settle­
ment for accepted tenders in accordance with the bids must
be made or com pleted at the Federal Reserve Bank on F eb­
ruary 13, 1969, in cash or other im mediately available funds or
in a like face amount o f Treasury bills maturing February 13,
1969. Cash and exchange tenders w ill 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 o f the bills, does not
have any exemption, as such, and loss from the sale or other
disposition o f 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 o r hereafter im posed on the principal or interest
thereof by any State, or any o f the possessions o f the United
States, or by any local taxing authority. F or purposes o f taxa­
tion the am ount of discount at w hich Treasury bills are origi­
nally sold by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) o f the Internal Revenue
Code of 1954, the amount o f discount at w hich 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. A ccordin gly,
the owner of Treasury bills (other than life insurance co m ­
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 ordinary gain or loss.
Treasury Departm ent Circular No. 418 (current revision)
and this notice prescribe the terms o f the Treasury bills and
govern the conditions o f 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, February 10, 1969,
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 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 February 6 , 1969, representing an
additional amount of bills dated November 7, 1968, maturing May 8 , 1969; and 182-day bills dated February 6 , 1969,
maturing August 7, 1969) are shown on the reverse side of this circular.



A lfred H a y e s ,

President.

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES
TO BE ISSUED FEBRUARY 6, 1969)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing May 8,1969

182-Day Treasury Bills
Maturing August 7, 1969

Price

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

..

98.429

6.215%

96.800

6.330%

Low . . .

98.417

6.262%

96.781

6.367%

Average

98.420

6.251%!

96.785

6.359%!

High

1
These rates are on a bank discount basis. The equivalent coupon issue yields are 6.44 percent for the 91-day bills, and
6.66 percent for the 182-day bills.

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

(50 percent of the amount of 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 May 8, 1969

..........

$

27,870,000

Applied fo r

Accepted

Applied fo r

District

182-Day Treasury Bills
Maturing August 7,1969

$

17,770,000

$

5,684,000

Accepted

$

5,609,000

New York .................. ..........

2,097,084,000

1,145,344,000

1,661,449,000

799,771,000

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

36,595,000

21,113,000

16,894,000

6,894,000

..........

41,519,000

41,238,000

41,487,000

29,937,000

..........

28,066,000

18,066,000

18,354,000

6,254,000

..........

35,780,000

26,114,000

33,991,000

20,466,000

188,091,000

128,676,000

174,025,000

114,425,000

42,004,000

39,314,000

35,914,000

17,489,000

25,688,000

9,188,000
14,759,000

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

53,835,000
31,863,000

..........

33,736,000

31,236,000

17,778,000

........

31,579,000

21,194,000

23,346,000

13,346,000

191,453,000

90,241,000

131,161,000

43,461,000

San F ra n cisco ..............
T otal

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

........

$2,797,471,000

$l,600y485,000a

$2,189,171,000

a In clu d e s $324,728,000 n o n co m p e titiv e ten ders a ccep ted at the average p rice o f 98.420.
b In clu d e s $178,222,000 n o n com p etitiv e ten ders a ccep ted at the a vera ge p rice o f 96.785.




$1,100,024,000b

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