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FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, April 26, 1962

PRELIMINARY ANNOUNCEM ENT
EXCHANGE OFFERING

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
There is quoted below a press statement issued by the Treasury Department today in regard to
current financing:
Treasury to Refund $11.7 Billion of Securities
Maturing May 15 and June 15
The Treasury is offering holders of Treasury securities maturing M ay 15 and June 15,
1962, aggregating $11,683 million, the right to exchange them for any of the following securities:
3 Vi percent Treasury Certificates of Indebtedness to be dated M ay 15, 1962, and to
mature M ay 15, 1963, at par;
3 % percent Treasury Notes to be dated M ay 15, 1962, and to mature February 15,
1966, at 99.80, to yield about 3.68 percent to maturity; or
3 % percent Treasury Bonds to be dated M ay 15, 1962, and to mature November 15,
1971, at 99.50, to yield about 3.94 percent to maturity.
Cash subscriptions for the new securities will not be received. The maturing issues eligible
for exchange are as follows:
$5,509 million of 3 percent Treasury Certificates of Indebtedness of Series A -1962,
dated M ay 15, 1961, maturing M ay 15, 1962;
$2,211 million of 4 percent Treasury Notes of Series E-1962, dated April 14, 1960,
maturing M ay 15, 1962; and
$3,963 million of 2 Vi percent Treasury Bonds of 1959-62, dated June 1, 1945, matur­
ing June 15, 1962.
The subscription books will be open only on April 30 through May 2 for the receipt of
subscriptions. Subscriptions for any issue addressed to a Federal Reserve Bank or Branch, or
to the office of the Treasurer of the United States, and placed in the mail before midnight, M ay
2, will be considered as timely. The new securities will be delivered M ay 15, 1962. Interest on
the 2 Vi percent bonds which are exchanged will be paid through M ay 15, as indicated below.
The new certificates of indebtedness will be available only in bearer form. The new notes and
bonds will be made available in registered as well as bearer form.
Interest on the 3 Vi percent certificates of indebtedness will be paid on November 15, 1962,
and M ay 15, 1963. Interest on the 3 % percent notes will be paid on August 15, 1962, and semi­
annually thereafter on February 15 and August 15. Interest on the 3 % percent bonds will be
paid on November 15, 1962, and semiannually thereafter on M ay 15 and November 15.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Exchanges of 3 percent certificates and 4 percent notes
Exchanges of the 3 percent certificates and 4 percent notes maturing M ay 15, 1962, may
be made for a like face amount of any of the securities included in this exchange offering.
Coupons dated M ay 15, 1962, on the maturing 3 percent certificates and 4 percent notes in bearer
form should be detached by holders and cashed when due. Subscribers to the new 3 % percent
notes and Vfo percent bonds will be paid, respectively, $2.00 and $5.00 per $1,000, representing
the discount on these securities.
Exchange of 2V* percent bonds
Exchanges of the 2 V percent bonds maturing June 15, 1962, may be made for a like face
4
amount of any of the securities included in this exchange offering. Coupons dated June 15, 1962,
must be attached to the maturing 2r percent bonds in bearer form when surrendered for ex­
A
change. Payments will be made to holders who exchange their 2Va percent bonds as follows:

2 'A Percent Bonds
Exchanged tor

3Vi% certificates 5 /1 5 /6 3
3 % % notes 2 /1 5 /6 6
3 7 % bonds 1 1 /1 5 /7 1
/s

CREDITS PER $1,000
Accrued Interest
Discount
on 2 % Percent
on New
Bonds to 5/15/62
Securities

$9.33379
9.33379
9.33379

—

$2.00
5.00

Amount to
be Paid to
Subscriber

$9.33379
11.33379
14.33379

Official circulars and subscription forms for the three new issues of Treasury securities will be
mailed to reach all banking institutions by Monday, April 30, 1962.
Yours very truly,
Watrous H. Irons
President

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