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FEDERAL RESERVE BANK OF N E W YORK
Fiscal Agent of the United States
r Circular No. 6 2 9 9 T
L February 26, 1969 J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated December 5,1968, Due June 5, 1969
(To Be Issued March 6, 1969)
$1,100,000,000 of 182-Day Bills, Dated March 6, 1969, Due September 4, 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:
The Treasury Department, by this public notice, invites
tenders for two series o f Treasury bills to the aggregate amount
of $2,700,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing March 6, 1969, in the amount of
$2,702,733,000, as follow s:
91-day bills (to maturity date) to be issued March 6,
1969, in the amount of $1,600,000,000, or thereabouts,
representing an additional amount of bills dated D e­
cember 5, 1968, and to mature June 5, 1969, originally
issued in the amount o f $1,100,082,000, the additional
and original bills to be freely interchangeable.
182-day bills, for $1,100,000,000, or thereabouts, to be
dated March 6, 1969, and to mature September 4, 1969.
The bills o f 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 o f $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, March 3, 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
competitive tenders the price offered must be expressed on the
basis o f 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 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 o f 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 of 2 percent o f the face amount of
Treasury bills applied for, unless the tenders are accompanied
by an express guaranty o f 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 in g which

public announcement will be made by the Treasury Department
of the amount and price range of accepted bids. T h ose 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 w hole 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) of
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 M arch 6, 1969,
in cash or other immediately available funds or in a like face
amount o f Treasury bills maturing M arch 6, 1969. Cash and
exchange tenders will receive equal treatment. Cash adjust­
ments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of
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 of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exem pt from all taxa­
tion now or hereafter im posed 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 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) o f the Internal Revenue
Code of 1954, the amount of discount at which 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 ccordingly,
the owner of 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 ordinary 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, March 3, 1969,
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 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 27, 1969, representing an
additional amount of bills dated November 29, 1968, maturing May 29, 1969; and 182-day bills dated February 27,
1969, maturing August 28, 1969) are shown on the reverse side of this circular.




A lfred

H ayes,

President.
( over)

RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES
TO BE ISSUED FEBRUARY 27, 1969)

Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing May 29,1969

182-Day Treasury Bills
Maturing August 28,1969

Price

Approx. equiv.
annual rate

Approx. equiv.
Price

annual rate

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

98.473

6.041%

96.848a

6.235%

Low

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

98.455

6.112%

96.822

6.286%

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

98.463

6.080%1

96.836

6.258%1

a Excepting tw o tenders totaling $900,000.
1
These rates are on a bank discount basis. The equivalent coupon issue yields are 6.26 percent for the 91-day bills, and
6.55 percent for the 182-day bills.

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

(91 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 29,1969
Applied, for

District

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

$

29,881,000

182-Day Treasury Bills
Maturing August 28,1969
A pplied for

Accepted

$

19,857,000

$

4,911,000

Accepted

$

4,911,000

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

1,867,869,000

1,095,369,000

1,446,869,000

788,989,000

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

36,315,000

21,315,000

31,147,000

21,147,000
20,532,000

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

34,678,000

34,678,000

20,532,000

Richmond .................... ..........

11 562,000

11,562,000

6,404,000

6,404,000

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

45,947,000

35,347,000

32,539,000

22,139,000

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

194,517,000

159,817,000

143,051,000

100,051,000

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

45,057,000

39,767,000

22,063,000

18,318,000

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

28,083,000

22,083,000

23,261,000

13,761,000

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

29,442,000

28,942,000

15,811,000

15,311,000

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

26,745,000

17,455,000

22,082,000

12,082,000

144,069,000

114,169,000

132,607,000

76,607,000

Cleveland

Atlanta

Minneapolis

Dallas

San Francisco

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

T o t a l .................

..........

$2,494,165,000

$ 1,600,361,000b

$1,901,277,000

b In clu d es $315,476,000 n on com p etitive tenders a ccep ted at the average price o f 98.463.
c In clu d es $162,387,000 n on com p etitive tenders a cccp te d at the a verage price o f 96.836.




$1,100,252,000°