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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 75222 C r u a No. 67-86 iclr A r l 2 , 1967 pi 6 PRELIMINARY ANNOUNCEMENT TREASURY FINANCING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: T h ere is quoted below a press statem ent issued today by the T reasury D epartm ent in regard to current financing: Treasury Announces $22.1 Billion Refunding T h e T reasu ry today announced th a t it is offering holders of the note issue m aturing M ay 15, 1967, an d the certificate, note and bond issues m aturing Ju n e 15, and A ugust 15, 1967, an opportunity to exchange their holdings a t attractive yields. T h e securities eligible for exchange and those being offered are as follows: S e c u r ities E lig ib le fo r E x c h a n g e a n d T h e ir M a t u r i t y D a t e s 4V4 % 2V z% notes, D-1967 bonds, 1962-67 S e c u r i t i e s O f f e r e d in E x c h a n g e a n d T h e ir M a t u r i t y D a t e s 4V4% notes, C-1968 4 3 4 % notes, B-1972 / 5 /1 5 /6 7 6 /1 5 /6 7 8 /1 5 /6 8 5 /1 5 /7 2 P r e r e fu n d in g 5V4% ctfs., A-1967 8 /1 5 /6 7 3 3 % notes, A-1967 /4 8 /1 5 /6 7 4 % % notes, B-1972 5 /1 5 /7 2 4 % % notes, E-1967 8 /1 5 /6 7 T h e new 4 X % notes are being offered a t 99.95, which provides a yield of 4.29% . T h e new 4 % % A notes are being offered a t par. D etails showing cash and interest adjustm ents for subscribers exchanging securities due Ju n e 15 and A ugust 15 appear in T able 1. A pproxim ate investm ent yields appear in T ab le 2. B oth tables are shown on the reverse side. T h e public holds $9.0 billion of the securities eligible for exchange and about $13.1 billion is held by F ederal R eserve and G overnm ent Investm ent Accounts. C ash subscriptions for th e new notes will not be received. T h e books will be open for three days only, on May 1 through May 3, for the receipt of subscriptions. Subscriptions addressed to a F ederal R eserve B ank or Branch, or to the Office of the T reasu rer of the U nited States and placed in the m ail before midnight, May 3, will be considered as tim ely. T h e paym ent and delivery d ate for th e new notes will be M ay 15, 1967. In terest on the securities m aturing Ju n e 15 and August 15, 1967, will be adjusted as of M ay 15, 1967. T h e new notes will be m ade available in registered as well as bearer form. All subscribers requesting registered notes will be required to furnish appropriate identifying num bers as required on tax returns and other docum ents subm itted to the In tern al R evenue Service. T his is a taxable exchange. Coupons dated M ay 15, 1967, on the securities m aturing on th a t d ate should be detached and cashed when due. Coupons dated June 15, 1967, and August 15, 1967, on the securities due on those d ates m ust be attached. T he M ay 15, 1967, interest due on registered securities will be paid by issue of interest checks in regular course to holders of record on April 14, 1967, th e d ate th e transfer books closed. In terest on the 4 notes will be payable on A ugust 15, 1967, and on F eb ru ary 15 and A ugust 15, 1968. In terest on the 4 % % notes will be payable on N ovem ber 15, 1967, and thereafter on M ay 15 and N ovem ber 15 until m aturity. T h e official circulars and subscription forms for th e new issues of T reasury notes will be m ailed T hursday, April 27; however, if th e forms do not reach you by M onday, M ay 1, subscriptions m ay be entered by m ail or telegram , subject to confirm ation on official subscription blanks. Yours very t u y rl, Watrous H. I o s rn Peiet rsdn (o v e r) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TABLE N . 1 o PAYMENTS DUE TO SUBSCRIBERS IN THE MAY 1967 REFUNDING (In Dollars P er $100 Face Value) Securities To Be Exchanged Payment To ( + ) or By (—) Subscribers On Account of Issue Price of Offered Securities Note, Bond, Cert., Note, Note, Net Amount To Be Paid To Subscribers For the 4 x\% Note of 8/15/68 / +.050000 1.037088 —.050000 For the 4 %% Note of 5/15/72 4Vi% Note, 5/15/67 2%% Bond, 6/15/67 4%% 2 y2% 5 %% 3% % 4% % Accrued Interest to May 15, 1967, On Securities Exchanged To Be Paid To Subscribers 5/15/67 6/15/67 8/15/67 8/15/67 8/15/67 .050000 .987088 1.037088 1.290746 0.921961 1.198550 .937088 1.590746 .771961 1.398550 —.100000 +.300000 —.150000 +.200000 A Interest will be paid in regular course. TABLE No. 2 INVESTMENT RETURNS IN THE MAY 1967 PREREFUNDING Securities Eligible for Exchange Approximate Investment Yield From 5/15/67 to M aturity1 Approximate Reinvestment Rate of the Extension Period2 5*/4% Certificate, 8/15/67 3%% Note, 8/15/67 4% % Note, 8/15/67 4.72% 4.72 4.72 4.79% 4.77 4.79 OFFICE OF THE SECRETARY OF THE TREASURY 1 Yields to nontaxable holders (or before tax) on issues offered in exchange bases on prices of eligible issues (adjusted for payments on account of issue price). Prices are the mean of bid and ask quotations at noon on April 25, 1967. 2 Rate for nontaxable holder (or before tax).