View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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).

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