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FEDERAL RESERVE BANK OF DALLAS F IS C A L A S E N T O F T H E U N ITE D ST A T E S Dallas, Texas, January 8, 1963 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: The following statement was made public today by the Treasury Department: TREASURY ANNOUNCES RESULTS OF COMPETITIVE BIDDING FOR $250 MILLION TREASURY BONDS “The Secretary of the Treasury announced today that a syndicate headed b y : C. J. Devine and Company, Salomon Bros, and Hutzler, Bankers Trust C o, Chase Manhattan Bank, First National City Bank of New York, Chemical Bank New York Trust C o, and the First National Bank of Chicago, and 68 others, was the successful bidder for the $250 million Treasury Bonds of 1988-93 offered today at competi tive bidding. The winning bid was $99.85 111 per $ 100 of face amount for a 4 percent coupon, which results in a net basis cost of money to the Treasury of 4.008210 percent, calculated to maturity. “It is understood that the winning syndicate is reoffering the bonds at par. “Other bids submitted were: “A syndicate headed by Morgan Guaranty Trust Co. of New York, Bank of America, N.T. and S.A., San Francisco, Blyth & C o, In c, Halsey Stuart 8s C o, In c, and Aubrey G. Lanston 8s C o, Inc, and 47 others; $99.85100 for a 4 percent coupon, resulting in a net basis cost of money of 4.008216 percent. “. . . A syndicate headed by First Boston Corporation, Continental Illinois National Bank and Trust Co. of Chicago, and Discount Corporation of New York, and 80 others: $99.71014 for a 4 percent coupon, resulting in a net basis cost of money of 4.016334 percent. “...a n d by C. F. Childs 8s C o, Inc.: $100.00000 for a 4Va percent coupon, resulting in a net basis cost of money o f 4.124621 percent. “Secretary Dillon said: “The bidding by the four syndicates indicates that the market has responded with keen interest to this first offering of bonds at competitive bidding and has provided the base for the potential development of an important new instrument for debt management The winning bid is highly satisfactory to the Treasury from the standpoint of interest cost; the second bid was within $275 of the winning bid. ‘The experience in the distribution o f these securities, of course, will be o f great interest to the Treasury in demonstrating the efficacy of this approach to the wider distribution of Treasury offerings for cash in the long-term area. “The bidding of the various syndicates indicates their combined judgment that borrowing o f this amount can be readily fitted into the existing rate structure. It clearly indicates that it is possible for the Treasury to tap the long-term market in this amount with a minimum impact on the supply of funds related to the needs of the economy5.” 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)
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