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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, March 21, 1968

INVITATION TO BID
UNITED STATES TREASURY BONDS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

A press statement and a public notice announcing an invitation for bids
on $300,000,000 of Treasury Bonds of 1989-94 at competitive bidding are
reproduced on the following pages. Provisions relating to the coupon rate
of interest will be announced on April 3, 1963.
Each bidder may submit only one bid, which must be for the purchase of
the entire $300,000,000 block of the bonds described in the invitation. A
deposit of 3 percent of the principal amount o f the bonds in immediately
available funds must accompany each bid.
Official forms for filing written notice of intention to bid and other forms
and envelopes relating to the submission of an actual bid to the Federal
Reserve Bank of New York may be obtained upon request from this bank
or its branches at El Paso, Houston and San Antonio.

Yours very truly,
Watrous H. Irons
President

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

TREASURY DEPARTMENT
Washington, D. C.

March 20, 1963

TREASURY ANNOUNCES SECOND OFFERING OF
BONDS AT COMPETITIVE BIDDING

Treasury Secretary Douglas Dillon today issued a public notice of invita­
tion for bids on $300,000,000 of Treasury Bonds of 1989-94. This will be the
second sale of Treasury Bonds to an underwriter on the basis of competitive
bidding for reoffering to the public. The first sale of bonds using the new
technique was undertaken in January of this year.
Bids for the bonds will be received at the Federal Reserve Bank of New
York not later than 11:00 a.m., Eastern Standard Time, on Tuesday, April 9,
1963. The successful bidder will be required to make a bona fide reoffering
of all of the bonds to the investing public.
The bonds will mature on May 15, 1994, but may be called for payment
on May 15,1989, or any interest payment date thereafter. The bonds will be
dated April 18, 1963. Interest will be payable on May 15 and November 15
of each year until the bonds mature or are called. The first interest
coupon, payable November 15, 1963, will cover interest accrued between
April 18, 1963 and November 15, 1963.
A supplemental notice, to be published on April 3, 1963, will set forth
provisions relating to the coupon rate or rates of interest upon which bids
will be received. Bidders must file a notice of intent to bid at the Federal
Reserve Bank of New York not later than 12:00 noon, Eastern Standard
Time, on April 5, 1963.
Payment for the bonds must be made in immediately available funds not
later than 11:00 a.m., Eastern Standard Time, on April 18,1963.

March 20,1963
PUBLIC NOTICE OF INVITATION TO BID

on
Treasury Bonds of 1989-94
The Secretary of the Treasury, by this notice and under the terms and conditions prescribed in
Treasury Department Circular, Public Debt Series No. 22-62, invites bids for an issue of bonds of the
United States, designated as Treasury Bonds of 1989-94. The principal amount of the issue hereunder will
be $300,000,000. These bonds will be offered only as a single block on a competitive bid basis.
I.

Description of bonds

The bonds will be dated April 18, 1963, and will bear interest from that date payable on a semi­
annual basis on November 15, 1963, and thereafter on May 15 and November 15 in each year until the
principal amount becomes payable. They will mature May 15, 1994, but may be redeemed at the option
of the United States on and after May 15, 1989, at par and accrued interest, on any interest day, on four
months’ notice of redemption given in such manner as the Secretary of the Treasury shall prescribe.
From the date of redemption designated in any such notice, interest on the bonds called for redemption
shall cease.
If the bonds are owned by a decedent at the time of his death and thereupon constitute a part of his
estate, they will be redeemed at par and accrued interest at the option of the representative of the estate,
provided the Secretary of the Treasury is authorized by the decedent’s estate to apply the entire
proceeds of redemption to payment of the Federal estate taxes on such decedent’s estate.
II.

Notice of intent

Any individual, organization, syndicate, or other group intending to submit a bid must file written
notice of such intent with the Federal Reserve Bank of New York on Form PD 3555 by 12:00 noon,
Eastern Standard Time, on April 5, 1963. Notices which are received postmarked to show they were
mailed prior to that time will be treated as having been timely filed. Forms and envelopes therefor may
be obtained from any Federal Reserve Bank or Branch or from the Bureau of the Public Debt, Treasury
Department, Washington 25, D. C. The filing of such notice will not constitute a commitment to bid.
III.

Submission of bids

Only bids submitted in accordance with the provisions of this invitation, or any supplement or
amendment hereto, and of Treasury Department Circular, Public Debt Series No. 22-62, by bidders who
have filed notice of their intent to bid as required by Sec. II hereof will be considered. Each bid must be
submitted in duplicate on Form PD 3556, enclosed and sealed in an envelope which will be furnished with
the form, and must be received in the Northwest Conference Room of the Federal Reserve Bank of
New York not later than 11:00 a.m., Eastern Standard Time, on April 9, 1963. Forms and envelopes may
be obtained from any Federal Reserve Bank or Branch, or from the Bureau of the Public Debt, Treasury
Department, Washington 25, D. C.
A bid submitted by a syndicate must be supplemented by a list of its members which must specify
the amount of each member’s underwriting participation. This supplement must be filed by the repre­
sentative on Form PD 3557 not later than 12:00 noon on April 9, 1963, at the place designated for
receipt of bids.
Each bidder may submit only one bid which must be for the purchase of all of the bonds described
in this invitation. The price to be paid to the United States by the bidder must be expressed as a per­
centage of the principal amount of the bonds in not to exceed five decimals, e.g., 100.01038 percent.
Provisions relating to the coupon rate of interest will be set forth in a supplemental notice hereto on
April 3,1963.

Each bid must be accompanied by a payment to the Federal Reserve Bank of New York, as fiscal
agent of the United States, of an amount equal to 3 percent of the principal amount of the bonds in
immediately available funds.
IV.

Bids — Opening — Acceptance

Bids will be opened in the Northwest Conference Room of the Federal Reserve Bank of New York
at 11:00 a.m., Eastern Standard Time, on April 9, 1963, and the accepted bid will be announced publicly
not later than 2:00 p.m. Eastern Standard Time, on that date. The bids and the names of the bidders will
be considered as matters of public record, including, in the case of a syndicate, the names of the members
and the amount of each member’s underwriting participation.
The bid to be accepted will be the one resulting in the lowest basis cost of money computed from the
date of the bonds to the date of maturity determined in accordance with the terms of this invitation,
or any supplement or amendment hereto, and the provisions of Treasury Department Circular, Public
Debt Series No. 22-62. It shall be a condition of each bid that, if accepted by the Secretary of the
Treasury, the bidder shall make a bona fide reoffering of all of the bonds to the investing public.
When the successful bidder has been announced, his deposit will be retained as security for the
performance of his obligation and will be applied toward payment of the bonds. Thereafter, the deposits
of all other bidders will be returned immediately. No interest will be allowed on any of the deposits. In
the event that the supplemental notice does not specify a single coupon rate of interest and bids based on
different coupon rates of interest result in identical basis costs of money computed to maturity, the
Secretary of the Treasury will accept the bid resulting in the lowest basis cost to the first call date.
Otherwise, if identical bids are submitted, the Secretary of the Treasury, in his discretion, shall determine
the bid to be accepted by lot in a manner prescribed by him, unless he proposes and those who submitted
the identical bids agree on a division of the bonds. In the event of a division of the bonds, the bids of the
successful bidders will be amended accordingly, their deposits will be apportioned and the remainder
refunded immediately.
The Secretary of the Treasury, or his representative, will accept the successful bid by signing the
duplicate copy of the bid form and delivering it to the bidder, or his representative.
The Secretary of the Treasury, in his discretion, reserves the right to reject any or all bids.
V.

Payment for and delivery of bonds

Payment for the bonds must be made in immediately available funds and must be completed by the
successful bidder not later than 11:00 a.m., Eastern Standard Time, on April 18, 1963, at the Federal
Reserve Bank of New York.
If the bidder desires any registered bonds to be shipped on the payment date, he must notify the
Federal Reserve Bank of New York and furnish the necessary registration information within two days
after the award. All other bonds will be delivered in bearer form and will be available on the payment
date at Federal Reserve Banks and Branches. Shipment of the bonds will be made on the payment date,
at the risk and expense of the United States, to any place or places in the United States designated by
the bidder. If necessary, the Treasury will issue interim receipts for the bonds on the payment date.
Douglas Dillon,
Secretary of the Treasury

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