View PDF

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

Fe d e r a l Re s e r v e

bank of

Da l l a s

FISCA L AGENT OF THE UNITED STATES
DALLAS, TEXAS

75222

Circular No. 68-229
October 23, 1968

PRELIMINARY ANNOUNCEMENT
TREASURY FINANCING

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

There is quoted below a press statement issued today by the Treasury
Department in regard to current financing:
TREASURY ANNOUNCES $11.9 BILLION REFUNDING OF
NOVEMBER 15 AND DECEMBER 15 MATURITIES
The Treasury today announced that it is offering holders
of the notes and bonds maturing November 15? 19^8, and the
bonds maturing December 15, 1 9 6 8 , the right to exchange their
holdings for an 1 8 -month note or a 6 -year note.
The securities eligible for exchange are as follows:
5-l/^fo Treasury Notes of Series D-I9 6 8 , maturing Novem­
ber 1 5 , 1 9 6 8 ;
3-7/8$ Treasury Bonds of 1 9 6 8 , maturing November 15,

1 9 6 8 ; and
2-l/2$ Treasury Bonds of 1 9 6 3 -6 8 , maturing December 15?

1968.
The notes being offered are as follows:
5-5/8$ Treasury Notes of Series B-1970, dated November 15,

1 9 6 8 , due May 15, 1970, at 9 9 .8 5 to yield about 5 - 7 3 and an
additional amount of 5 - 3 Treasury Notes of Series A-197^-,
dated November 15, 1967, due November 15, 197^-, at par. About
$ 1 ,6 5 2 million of such notes are outstanding.
In the case of exchanges for the 5-5/8$ notes subscribers
will receive a cash payment of $ 1 .5 0 per $1 ,0 0 0 .
In the case of exchanges of the 2-l/2$ bonds interest
will be adjusted as of December 15, 1 9 6 8 : (l) subscribers

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

submitting subscriptions for the 5 - 5 / 8 $ notes -will be charged
($4.66l60 per $1,000) interest from November 15 to December 15,
1 9 6 8 , on such notes and credited with ($1 2 .5 0 per $1 ,0 0 0 ) in­
terest from June 15 to December 15, 1 9 6 8 , on the 2-l/2$ bonds
plus the cash payment ($1 . 5 0 per $ 1 ,0 0 0 ) on account of the
issue price of the notes, for a net payment to them of $ 9 *338^0
per $ 1 ,0 0 0 ; and (2 ) subscribers submitting subscriptions for
the 5-3/*$ notes will be charged ($4.76519 Per $1,000) in­
terest from November 15 to December 15, 1 9 6 8 , on such notes
and credited with ($12.50 per $1,000) interest from June 15 to
December 15, 1 9 6 8 , on the 2-1/2$ bonds for a net payment to
them of $ 7 .73^81 per $1 ,0 0 0 .
The public holds about $5.6 billion of the securities
eligible for exchange, and about $6 . 3 billion is held by Fed­
eral Reserve and Government Accounts.
Cash subscriptions for the new notes will not be received.
The books will be open for three days only, on October 28
through October 30, for the receipt of subscriptions.
Sub­
scriptions addressed to a Federal Reserve Bank or Branch, or
to the office of the Treasurer of the United States, and placed
in the mail before midnight October 30, will be considered as
timely.
The payment and delivery date for the notes will be
November 15, 1 9 6 8 . The notes will be made available in regis­
tered as well as bearer form. All subscribers requesting reg­
istered notes will be required to furnish appropriate identi­
fying numbers as required on tax returns and other documents
submitted to the Internal Revenue Service.
Coupons dated November 15, 19&8, on the securities matur­
ing on that date should be detached and cashed when due. The
November 15, 1 9 6 8 , interest due on registered securities will
be paid by issue of interest checks in regular course to holders
of record on October 1 5 , 1 9 6 8 , the date the transfer books closed.
Coupons dated December 15, 1968, on the bonds due on that date
must be attached.
Interest on the 5-5/8$ notes will be payable on May 15 and
November 15, 19^9 > and May 15, 1970.
Interest on the 5-3
notes will be payable on May 15 and November 15 until maturity.
The official circulars and subscription forms for the issues of Treas­
ury notes will be mailed Thursday, October 2 k ; however, if the forms do not
reach you by Wednesday, October 30, subscriptions may be entered by mail or
telegram, subject to confirmation on official subscription blanks.

Yours very truly,
P. E. Coldwell
President

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