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Authorized for public release by the FOMC Secretariat on 2/25/2020 FEDERAL RESERVE NEW BANK OF NEW YORK YORK RECTOR 45, N.Y. 2-5700 April 9, 1958 Mr. Winfield W. Riefler, Secretary Federal Open Market Committee Board of Governors of the Federal Reserve System Washington 25, D. C. Dear Win: Enclosed are several copies of a memorandum containing a review of the high-grade bond markets for the month of March. This memorandum is prepared on a monthly basis, but has thus far been circulated only within this Bank. However, officers of other Reserve Banks who have visited with us in connection with the Emergency Training Program have expressed interest in receiving a copy of the review each month. We shall be glad to make copies of each review available to others in the System, and shall appreciate hearing from you as to whether the Board or staff would wish to receive this memorandum on a regular basis. sending a similar letter to the Presidents of the other Reserve Banks. Sincerely yours, Robert , Manager System Open Market Account Enclosures We are Authorized for public release by the FOMC Secretariat on 2/25/2020 FEDERAL RESERVE OF NEW OFFICE BANK YORK CORRESPONDENCE DATE 7, 1958 SUBJECT. Review of High Grade Bond Markets TO Mr. Rouse FROM D. Hunter, Securities Department Copies to Messrs. April Month of March 1958 Roosa, Larkin, Marsh and Stone. Prices and yields for outstanding long-term high grade bonds held within a fairly narrow range during March but some concession had to be made to distribute new and recent offerings of corporate and municipal bonds. The flow of new issues con- tinued heavy. Slightly over $1.0 billion of new corporate and municipal issues were offered publicly in addition to the $718 million American Telephone and Telegraph Company convertible debentures offered to stockholders. of unsold balances from earlier offerings. Also, there was a sizable carryover Roughly $200 million of corporate issues were undistributed at the beginning of March and Blue List offerings of municipal bonds, consisting mainly of recent issues, were in excess of $400 million. in Early the month upward yield adjustments of as much as 15 to 20 basis points were neces- sary to distribute new and recent issues. As the month drew to a close, however, new corporate and municipal bond issues were being offered close to late February levels despite some resistance to this level. The underlying tone of the bond markets remained relatively steady, in- fluenced to some extent by anticipation of and the actual announcement of the following: Date Announced Match 6, P M. Discount Rate reduced from 2 3/4 to 2 1/4 per cent at three Federal Reserve Banks. March 10 Treasury Financing Press reports that $3 billion or more new money will be raised by the Treasury in April. March 18, P.M. Reserve Requirements reduced by 1/2 percentage point. Authorized for public release by the FOMC Secretariat on 2/25/2020 2 Selected High-Grade Bond Yields Mar. 31 1958 Corporate Bonds: 3.67% Net change Feb. 28 since Dec. 31 3.46 3.64 3.75 + + + - % - 1995 3 3 1/2% - 1990 3,17 3.33 - .06 - .04 - .04 3 1/4% - 1978-83 3 7/8% -1974 1969 4 % 3.22 3,27 3.07 - .04 - .04 - .05 - .02 - .04 3.04 2.97 2.79 2,41 + + - + + - Aaa Aaa Aaa Aaa Utilities (Moody's) Industrial (Moody's) (Composite) (Moody's) 15 year Eq. Tr. Ctf. .03 ,02 .03 .05 - .13 - .01 - .04 - .15 U. S. Treasury Bonds Municipal Bonds (Weekly series) High-grade 20 yr. (Dow-Jones) 11 Issues (Bond Buyer) Aaa 20 yr. bonds (Moody's) Aaa 10 yr. State Bds. (Moody's) .03 .01 .03 .01 .06 .12 .05 .19 U. S. Treasury Bonds Daily price fluctuations in the intermediate and long-term Treasury bond market did not exceed 3/8 of a point during March. There was some softness in this area at the beginning of the month when pressure developed from selling of these issues to raise funds to take up the new Treasury 3's of 1966 at a time when the bond markets were disturbed by congestion in the corporate and municipal sections. Renewed rumors of a cut in the discount rate soon circulated, however, and bond prices advanced on March 5 and 6. The discount rate reduction announcement late on March 6 failed to sustain the firm tone and prices drifted lower over the next few days mainly in response to further selling by professionals cash to pay for the balance of their allotments of the new 3's. and others to raise Press reports that the Treasury would be coming to the market with a $3 billion cash offering in early April added to the easier tone, but market opinion subsequently tended toward the view that the Treasury's offering would be confined to the 1 to 5 year area. Authorized for public release by the FOMC Secretariat on 2/25/2020 3 Long-term bond prices turned upward on March 12 and moved gradually higher over most of the month strengthened by the expectation that no long-term bonds would be offered by the Treasury at this time. Also, the pervasive effect of easy money, reflected in extensive switching operations designed to lengthen maturities, was an influence. There was no marked response in the Treasury bond market to the announcement on March 18 of the reduction in reserve requirements but bond prices continued to edge upward except for a slight easing on the last day of the month in response to reports that the Treasury financing announcement would be made on Wednesday, April 2. For the month as a whole prices for long-term bonds advanced 14/32 to 1 7/32 points, lowering yields by 4 to 6 basis points except for the long callable 2 1/2's on which yields declined 8 to 10 basis points (see Table I). On March 31, prices for most of the longer-term bonds were at or close to the recent high point (January 13). U. S. Government Agencies The amount of short-term Government agency issues outstanding was reduced $125 million in March. The F.I.C.B raised $58 million new money with short-term issues, but this amount was more than offset by the cash repayment on March 17 of $183 million F.H.L.B. debentures. In April, $200 million maturing F.N.M.A. deben- tures will be repaid without refunding and a $200 million maturity of F.H.L.B. debentures will be repaid from the proceeds of the sale of $290 million 5 year notes ($91 million new money) on April 1, thereby reducing the outstanding short- term Government agency debt by $400 million in April. Short-term issues, reflecting the actual and potential shrinkage in the supply, generally ended the month with yields 1/4 to 3/8 of a percentage point lower (see Table 2), points. while yields for intermediate maturities declined by 15 to 21 basis Long-term agency, as well as International Bank bonds, showed little change on average. Authorized for public release by the FOMC Secretariat on 2/25/2020 4 The only new agency issue publicly marketed during March, $135 million 9-month F.I.C.B. debentures, went well at a 2.00 per cent yield and this was 45 basis points below a similar offering around the middle of February. The refunding of agency obligations is expected to continue heavy as the following issues, other than those mentioned above, reach maturity between now and July 1. (In millions of dollars) F.H.L.B. F.L.B. May - 209 June 191 - July 1 F.I.C.B. F.N.M.A. Banks for Coop. Total 73 100 - 93 802 - 1,086 - 106 - - 106 63 445 1,637 Corporate Bond Market There was considerable congestion in the market for new corporate debt issues at the beginning of the month. A flood of new issues was imminent and large blocks of recently marketed bonds, estimated to total at least $200 million were still "on the shelf". In this atmosphere, a new $30 million Aaa-rated Baltimore Gas and Electric offering was only about three-quarters sold on March 3 despite a 3.94 per cent reoffering yield, the highest for a comparable new Aaa-rated issue since last December. On the same day investors backed away from a single A-rated $10 million offering at a 4.25 per cent yield which was the January lows. roughly one-half percentage point above On March 3, and 4 two earlier accounts were closed and free market prices dropped the equivalent of 17 basis points. to bid aggressively for new issues. Nevertheless, underwriters continued On March 4, $40 million Aa-rated Ohio Edison bonds were awarded at of 100.856 for 4 1/4's, almost 3/4 of a point higher than the second best bid for the same coupon. This was reportedly an extremely wide cover for a Aa-rated bond and the resulting 4.15 per cent yield proved unattractive, about three quarters of the issue was still unsold at the end of the offering day. Authorized for public release by the FOMC Secretariat on 2/25/2020 5 The market began to firm on March 5, primarily in response to a $35 million offering of Aa-rated Union Electric bonds which moved rapidly when priced to yield 4.22 per cent, about 7 basis points more than the Ohio Edison's. Later the same day rumors of a cut in the discount rate added to the developing buying wave. Over the following two weeks new issues moved well but most of the new offerings reaching the market at that time were of Baa quality and investors tended to show preference for the high yields, irrespective of rating. Buying spilled over into earlier issues, although price concessions had to be made in some cases, and the float was whittled down to a fairly small amount. The Board's announcement late on March 18 of a reduction in reserve requirements gave the market a psychological boost. underwriters became more aggressive Prices were marked higher and in bidding for new issues. Six underwriter groups bid competitively for $24 million single A-rated Georgia Power Company bonds on March 20, but the resulting reoffering yield of 4.07 per cent, only about 7 basis points have the going rate for Aa-rated issues, proved unattractive. interest in this Lagging issue and the disclosure of plans for large scale financing opera- tions tended to promote a hesitant tone in the market during the latter part of the month. Prices eased temporarily and investors were hesitant to take up high priced new issues. Two new $20 million issues were 80 to 90 per cent sold at the time of offering, but on March 31 a cool reception was given to $30 million Wisconsin Electric Power bonds. The 3.98 per cent reoffering yield on the Aa-rated Wisconsin bonds was slightly below earlier levels. Prices and yields for high grade corporate bonds show little net change on average for the month as a whole. Gains and losses for seasoned and recently offered bonds generally range from fractions to over 2 points (see Tables 3 and 4). Reoffering yields on new issues, while higher during the month, were also little changed at the end of March from late February levels as indicated by the following: Authorized for public release by the FOMC Secretariat on 2/25/2020 6 Reoffering Yields on New Corporate Bonds Public Utilities Aa A Date Aaa 1957-Peak 1958-Jan. Lows 4.86% 3.65 Feb. 4 - 20 5.00% 6.00 6.09% 3.60 3.80 4.25 3.80 3.90-3.92 24 - 28 3.77 3.95-4.00 4.15-4.40 1 - 6 3.94 4.15-4.22 4.25-4.40 " 11 - 18 " 19 - 31 " Mar. Baa 4.00 3.98-4.05 4.07-4.10 4.92 Four large corporate issues, totaling $100 million were postponed in March because of market conditions, although one of these sequently marketed. (for $20 million) was sub- About half of the amount postponed represented funds to be used to refund outstanding issues originally offered last year at or near peak rates. Large Corporate Issues Postponed During March 1958 (Amount in millions) Date Date Postponed Mar. 7 " 10 " 14 Amount Scheduled Total Mar. 12 " 10 $20* 20 $20 30 - General Telephone Co. Merrimack Essex Elec. Co. Tennessee Gas Trans. 30 30 N. J. Bell Telephone Co. 18 25 25 Issue Refund - $100 * Sold on March 26. An impressive volume was added to the calendar of scheduled offerings in March as indicated by the following table: Large New Bond Issues Announced During March 1958 (Amount in millions) Amount Refunding Total $150 130 $70 125 80 40 60 50 35 45 40 40 60 (780 Company Texas Co. New York Telephone Co. Alluminum Co. of America American Can Co. Douglas Aircraft Co. Richfield Oil Corp. New England Tel. & Tel. Co. J. E. Seagram & Sons, Inc. Philadelphia Electric Co. Consumers Power Co., $145 * No date set. (a) Offered to stockholders - rights expire. Type of Issue Bonds Bonds Bonds * Bonds Conv. deb. Bonds Bonds Bonds Bonds Date Scheduled * * April 10 April 9 * April 14 (a) April 14 April 9 April 29 Authorized for public release by the FOMC Secretariat on 2/25/2020 7 Equipment Trust Certificates New financing in this market totaled $19 million during March, raising the first quarter volume to $86 million, almost identical with the corresponding figure for last year. ing March. Buying interest in equipment trust certificates was fairly active dur- No difficulty was experienced in moving short maturities, but investors were slow to take up the longer term certificates and the addition of these to the floating supply of unsold balances of recent offerings raised the total to $21.5 million, slightly above February 28 levels. So far, approximately $40 million in new issues are scheduled for April, although half of this consists of a single offering of General American Transportation Corp. certificates. The imbalance of demand between long and short-term series, was reflected by changes in yields in these areas. certificates due in A new issue of Aaa-rated Norfolk and Western 6 months to 15 years was reoffered at 2.00 to 3.60 per cent as compared with 2.25 to 3.60 per cent for a comparable offering in February. Similarly, yields for outstanding Aaa certificates were reduced sharply in the short-term section moving 30 to 60 basis points lower for 1 to 5 year maturities. Intermediate term certificates were marked 10 to 30 basis points lower (6 to 11 year maturities) and maturities out to 15 years were reduced 5 basis points in yield. The new scale for the 1 to 15 year series now forms a fairly steep upward yield curve ranging from 2.25 to 3.75 per cent (bid). Municipal Market The overwhelming supply of new municipal bonds marketed in January and February, when a total of approximately $1.6 billion was offered, tapered off slightly in March, although the total for the month was about $1/2 billion. Accord- ing to the Bond Buyer the underwriting machinery was "strained to the limit" around the beginning of the month. Congestion in the new issue supply had left the market with a record volume of bonds in the "Street" and the Blue List total of advertised inventories was at an all time high of $417 million, almost $250 million of which Authorized for public release by the FOMC Secretariat on 2/25/2020 8 was in syndicate accounts. Commercial banks had been ready buyers of the shorter-term maturities, but investor buying in the longer maturities--although substantial--was insufficient to absorb the supply and long-term bonds made up a good part of the "Street" supply. Consequently, the market was on the heavy side at the beginning of March. Early in the month price concessions were necessary to move bonds out of the "Street" and it was reported that, in some cases, funds were raised to take down new issues by the liquidation of outstanding long-term dollar quoted municipals, exerting some pressure on prices for these issues. The market tone improved somewhat in response to the discount rate announcement late on March 6 and the better feeling was aided by a tapering off in new issue financing. Dealers became more willing to sit with unsold balances, particularly as available new issues began to move swiftly into investment portfolios. Institutional investors were reportedly buyers of tax exempts and commer- cial banks continued to take down short and intermediate maturities. this brought about a slow downward drift in market inventories. $20 million Aa-rated Mississippi bonds on March Altogether, An offering of 6 initially met with only fair reception, but was bailed out by the discount rate announcement and less than $1 million remained in the account the next day. The volume of financing dropped off over the following two weeks and during this time dealers were able to make some headway in distributing recent offerings. By the end of the third calendar week of March the Blue List total had been reduced to $325 million, almost $100 million below the beginning of the month levels. The announcement on March 19 of the second reduction of a 1/2 percentage point in reserve requirements tended to stabilize the market and dealers became increasingly reluctant to make price concessions to more bonds despite indications Authorized for public release by the FOMC Secretariat on 2/25/2020 9 of a continued heavy financing schedule. The 30 day visible supply remained persist- ently heavy, in excess of $400 million, as reports continued to reach the market of plans for new offerings. Bonds moved out of recent offerings but at the underwriters tended to bid over-optimisticly for large. new issues and distribution of some of these bogged down after initial sales. Notable examples were the Aa-rated $32 million Ohio Major Thoroughfare Construction bonds offered on March 20 and $49.5 million same time (a special tax fund issue) Aaa-rated New York State bonds on March 25. At the end of the month approximately $13 million of the Ohio's and $28 million of the New York State bonds were still "in syndicate". The Blue List total of dealers offerings ended the month only moderately below the March 19 level, standing at $318 million but it was almost $100 million below February 28. Note: Details of the more important security issues which were publicly offered or arranged for private placement during March are given in attached Table 5. Authorized for public release by the FOMC Secretariat on 2/25/2020 Table 1 PRICES AND YIELDS ON U.S. GOVERNMENT SECURITIES# March 31, 1958 Price* Treasury Bills (market bid) 3 months Certificates Yield Change since February 28,1958 Price* Yield - .17 1.10% o f Indebtedness 4% 3 3/4 2 1/2 B/ 1/58 12/ 1/58 100.28 101.15 1.38 1.53 2/14/59 100.22 1.70 8 + .10 4 2 - .06 Treasury Notes and Bonds 2 3/8 2 7/8 2 3/4 2 1/4 2 3/8 2 1/2 1 7/8 2 1/4 2 1/4 3 1/2 2 1/8 2 3/4 T/B T/B T/B T/N T/B T/B T/N T/B T/B 4 T/N 2 3/4 2 1/2 3 5/8 T/B T/B T/N 2 1/2 T/B 4 2 1/2 2 1/2 2 1/2 4 T/N T/N T/B T/B T/B T/B T/B T/B T/B T/B T/B T/B T/B T/B 3 7/8 T/B 3 1/4 3 1/2 3 T/B 6/15/78-83 T/B 2/15/90 100.16 103.10 T/B 2/15/95 96. 6 3 3/4 2 2 3 2 2 2 2 1/2 1/2 1/2 1/2 1/2 1/2 3 P C T/N 6/15/58 6/15/58 T/B 6/15/58 T/B .65 .83 .2 .73 100.13 . 1 P. 100.13 .71 9/15/56-59 C. 3/15/57-59 C. 12/15/58 2/15/59 6/15/59-62 12/15 /59-62 5/15/60 100.10 100.15 100.21 .3 .3 -. 3 .50 .28 .29 100.11 11/15/60 12/15/60-65 P. 8/ 1/61 9/ 15/61 11/15/61 1.55 1.S4 1.56 100. 7 1.62 .i .4 99.12 2.41 .8 99.16 2.36 1.98 .l0 103. loo. 103. 105. loi. 5 2 4 1 6 2.10 .11 1.56 .10 .4 2.42 .3 0 2.39 o loo. 6 2.45 .9 2/15/62 104.12 6/15/62-67 8/15/62 98.26 106 105. 8 2.43 2.64 2.54 .14 1. 4 . 1 .12 .11 11/15/62 8/ 15/63 12/15/63-68 2/15/64 6/15/64-69 12/15/64-69 3/15/65-70 3/15 /66-71 8/1 /66 6/15/67-72 9/15/67-72 12/15/67-72 99.27 97.30 101.26 97 96.26 96.16 96. 4 101. 9 95.16 95.16 95.16 io/ 1/69 109 11/15/74 107.22 Figures after decimals represent 32nds of a point. Excludes 1 1/2% conversion notes. Partially Tax Exempt. Next Call Date Sept. 15, 1958. 2.53 2.53 2.73 2.66 2.81 2.82 .06 .07 .20 .12 .o8 .06 .O10 .08 .14 .15 .03 .11 .07 .14 .20 1. 1 .12 .30 1. 0 .28 2.88 .30 3.07 3.27 .14 .14 .24 .22 3.33 3.17 .15 1.10 2.85 2.86 2.83 2.89 2.88 3.22 .33 .05 .30 1. o 1. 7 .11 .10 .o10 .08 .08 .09 .08 .05 .04 .04 .04 .06 Authorized for public release by the FOMC Secretariat on 2/25/2020 Table 2 PRICES AND YIELDS FOR SELECTED* U.S. GOVERNMENT AGENCY ISSUES (Amounts in millions) Net change March 31, 1958 Am't Bid Issue Ask# Since 2/28/58 Yield(a) Bid Yield a Federal Intermediate Credit Bank-debentures $107 10/ 1/58 100.30 101 1.61% + 11/ 3/58 12/ 1/58 100.23 100.13 100.27 1oo.16 1.54 1.67 + 100. 4 100. 7 1.71 132 3.65% 3 130 2.45 135 2 1/15/59W.I. $ 86 3.30 7/15/58 $797 3 5/8% 3 1/2 3 1/4 4 3/8 3 5/8 200 150 100 100 $ 51 5 78 2 $140 4 83 125 60 83 60 110 Federal Home Loan Bank-notes 100.17 100.15 % 35 5/8% 3 3/8 4 4 5/8 3 1/2 3 1/2 3 7/8 .1 .4 .4 + 1.42% Federal National Mortgage Association 8/23/60ML 102.18 102.26 2.40% 2/13/62 102.18 102.24 2.74 3/11/63 101.20 101.24 2.87 .26 -.43 + .24 -. 21 + .30 .18 -. 07 -. 03 107 1/8 3.25 + 3/8 3/11/68 101.12 101.20 3.43 + 10o 2/ 2/59 4/ 3/61 5/ 1/62 7/15/69 4/ 1/70 5/ 1/71 100. 8 100.11 Federal Land Bank-bonds 102. 6 102.12 101.24 102 104 104 1/2 109 110 100 1/8 100 1/2 9/15/72 99 1/2 103 1.50% - .4 -. 16 1.67 + .4 -. 36 2.68 + .18 2.82 + 1/2 1/2 -. 17 1.74% 3.54 3.45 3.45 3.52 100 1/2 104 -.31 + 106 5/8 9/ 2/58 Io/ 7/58 -. 41 +.03 6/10/65 Banks for Cooperatives 101.10 101.14 -.27 -+ + 1/8 1/8 -. 20 -. 15 +.04 -. 02 -. 01 PRICES AND YIELDS FOR SELECTED INTERNATIONAL BANK BONDS (Amounts in millions) Net March 31, Issue Am't $100 60 150 100 150 75 100 1/ 1/69 3 1/2% 3 1/2% 3 10/15/71 7/15/72 4 1/2 4 1/4 4 3/4 3 1/4 1/ 1/77 1/15/79 11/ 1/80 10/ 1/81 Bid Ask 98 99 97 1/2 96 1/2 105 100 3/4 101 3/4 106 107 90 3/4 Source: First Boston Corp. offering sheets. * Generally issues maturing in over 6 months. (a) Based on offering prices. # Figures after decimals represent 32nds of a point. Federal Reserve Bank of New York Securities Department change Since 2/28/58 Yield 92 1/2 91 1/2 104 89 3/4 1958 (a) 3.61% 3.74 3.65 4.11 4.12 4.26 3.85 Bid - Yield a +.03 - 1/4 1/2 1/2 +.03 - 3/4 +.04 + 3/4 -. 05 +.02 Authorized for public release by the FOMC Secretariat on 2/25/2020 Table 4 PRICES AND YIELDS ON SELECTED SEASONED HIGH GRADE CORPORATE BONDS Amt. (In mil.) Net change Marc h 31 Bid Industrials Texas Corp. Pittsburgh P. Glass Shell Union Oil Standard Oil-N.J. Socony Vacuum Oil General Electric Co. General Motors Corp. Atlantic Refining $ 53 40 125 150 94 300 300 55 100 60 100 *Aluminum Co. of Amer. *Borden Co. *Continental Oil Ask 98 1/2 98 1/2 99 1/2 99 1/2 2 1/2 -71 90 1/4 91 1/4 2 3/4 -74 2 1/2 -76 90 1/2 92 87 1/2 98 7/8 96 97 88 1/2 99 3/8 96 3/4 98 93 3 3 %-65 -67 3 1/2 -76 3 1/4 -79 3 1/4 -79 3 -79 2 7/8 -81 -84 3 91 1/2 90 90 92 98 95 1/2 96 89 1/2 98 3/4 96 1/2 97 91 93 89 87 88 1/2 91 1/2 1958 Yield Since 2/28/58 Price a 3.08% 3.06 3034 3.39 3.35 3.55 3.47 3.38 3.47 3.38 3.50 + - 1/4 1/2 1/4 1/2 +.04 -.07 +.01 +.01 +.08 3/8 +.03 - - - Yield +.02 - +1 -.07 +.04 Utilities 108 65 50 113 155 75 50 44 90 75 200 75 75 67 *So. Cal. Edison Phila. Electric Clev. Elec. Illum. -65 3/4 -67 *Consumers Power 7/8 -75 -77 3/4 -77 3/4 -81 7/8 -81 -81 3/4 -85 7/8 -87 3/4 -85 1/8 -88 5/8 -91 -70 Commonwealth Edison Duquesne Light Co. Illinois Bell Tel. Cons. Gas Balt. N.Y. Telephone Co. Southwestern Bell Tel. *Amer. Tel. & Tel. South. Bell. Tel. Mich. Bell Tel. *Pac. Tel. & Tel. 87 85 87 88 82 84 1/2 84 89 95 91 90 84 85 1/2 86 91 97 3.20 + 1/4 3.17 3.30 3.57 3.51 3.54 3.58 3.62 3.64 3.68 3.69 3.56 3.62 3.78 + +1 1/2 -2 +.o8 3.68 3.82 3.72 -3 1/2 +.21 -111/4 + 1/4 +.07 -.01 -l 1/2 -2 1/2 -2 -i -1 -1 -4 1/2 -i- -.03 -.10 +.12 +.11 +.16 +.06 +.11 +.07 +.24 +.03 + .06 Railroads Union Pacific Atch. Top. & S.F.-Gen. Norfolk & Western 81 151 34 2 1/2 -91 4 4 Source: * (a) -95 -96 75 1/2 102 3/4 105 3/4 77 1/2 103 1/2 First Boston Corp. and Salomon Bros. & Hutzler. Rated Aa by Moody's - all other issues listed above are rated Aaa. Based on offering prices. Federal.Reserve Bank of New York Securities Department Authorized for public release by the FOMC Secretariat on 2/25/2020 NEW SECURITY ISSUES - MARCH 1958 (Amounts in millions) >le 5 PRIVATE PLACEMENTS Date Announced Amount Placed With Issue -1958Mar. 3 6 7 $10 20 15 13 13 30 50 Kimberly-Clark Corp.-note-1967 (Refunding) Yankee Atomac Electric Co.-1st. mge. bds. General Baking Co.-prom. notes Union Bag-Camp Paper Co,-loan Bell Telephone Co. of Canada-bds. Life Insurance 5 1/4%-78 1963-78 Cos. Institutional investors Equitable Life Assur. Society Institutional investors PUBLIC OFFERINGS Moody's Rating Date Mar- 3 3 4 5 6 6 11 11 11 12 18 19 20 24 26 30 A Aaa Aa Aa Am' t $10 30 40 35 5 A Aa 30 Baa 20 30 16 20 Baa Baa Aa Baa A Aa A Aa 8 25 24 20 20 30 Issue Corporate - Non-convertible Call Prov#i Bonds Iowa Public Service Co.-lst. mtge, Baltimore Gas & Electric Co.-lst,& ref. Ohio Edison Co.-1st. mtge. Union Electric Co.-lst. mtge. Virginia & Southwest. Rwy. (gtd.) Columbia Gas System Inc.-deb. Indianapolis Power & Light Co.-1st. mtge. Sylvania Electric Products, Inc.-deb. Mississippi River Fuel Corp.-deb. Chicago,R.I. & Pacific R.R.-1st, mtge. Carolina Power & Lt. Co.-lst- mtge. Texas Eastern Trans. Corp.-lst. mtge Georgia Power Co.-lst. mtge. Florida Power & Lt, Co.-1st. mtge. General Telephone Co.-lst. mtge. Wisconsin Electric Pr, Co.-lst. mtge. 1/4%-1988 - 93 1/4 - 88 3/8 - 88 1/4 - 3/8 1/8 3/4 3/4 1/2 1/8 7/8 1/8 1/8 1/8 1/8 - 105 106.14 105.96 107 *Awarded @ 99.02 104 106-30 8o 1963 1963 78 83 88 78 88 88 88 88 107 106.3 100 Yield 4.25% 3.94 4.15 Initial Reception 1/3 sold. " 3/4 Slow; all sold 3/5. Well received. 100.31 100.86 101.74 101.134 101.706 102.623 100 98.82 99.623 101.39 102.172 100 100 1/2 100 102 172 4.00 About 80% sold. 4.75 4.71 5.50 Well received. 4.00 Well received. 99 1/2 4.92 4,07 4.05 4.10 All sold, Slow. 80% sold. 9040 sold. 3.98 Slow. -3 83 88 *Reoffered @ Price 98.129 101.51 1963 105-1 105.42 100.06 100.609 1963 106.66 101.699 99.599 100.947 101.295 100 ,429 102,526 4.22 4.25 4.40 # Current call price or first date issue can be refunded. * Approximate. 85% sold. All sold. Authorized for public release by the FOMC Secretariat on 2/25/2020 2 NEW SECURITY ISSUES Moody's Rating Date (Continued) *Awarded Am't Issue *Reoffered @ Yield @ Price 99.54 100 1/2 100 100 100 Initial Reception -195$Corporate-Convertible Debentures Mar. 5 6 11 12E $ 9 4o Ba 20 Aa 718 Equipment Trust Mar. Aaa 26 26 27 Aa 1.9 Texas Pacific Aa 4.8 7.7 Chicago, Burlington & Quincy R.R. Louisville & Nashville R.R. Aa 3.19% 5.50 4,50 4.25 Quoted 102-102 1/2. Quoted 102 1/4-102 1/2. 99.7% subscribed for. Certificates 12 $4.7 3 1/-4-19683 5 1/2 - 8.3R 4 1/2 - 8:3 4 1/4 ~ 73 Iowa Illinois Gas & Elec. Co. Chemical Corp. Olin Mathieso Sylvania Electric Products, Inc. American Tel. & Tel. Co. Norfolk & Western Rwy. 3.51% 3 1/2 1/2 tO 15 yrs. 1 tb 10 yrs. 1/P te 15 yrs, 3 3/8 1/2 3.55% 3 1/4% 3 Rwy. tb 15 .yrs., 2.00 2.00 to to 3.60 3.50 1.75 2.00 to to 3.65 3.65 About 1/2 sold. Good. Stock Issues Mar. 3E 5 11 18 26E 31 $12 25 13 20 13 21 Shell Transport & Trading Co. Ltd.-(818,000 shs.) common Public Service Electric & Gas Co. (250,000 shs.) 5.05% cum. pfd. Cincinnati Gas& Electric Co. (130,000 shs.) 4 3/4% cum. pfd. Tennessee Gas Trans. Co. (200,000 shs.) 5.16% cum cony. pfd. Circinnati Gas & Electric Co. (450,923 shs.) common General Telephone Co. (500,000 shs.) common 15.40 102 100 100 28 1/2 4.95 4.75 5.16 42 7/8 85% sold. Quoted 101-102. About 90% sold. Well received. U.S. Government Agencis Mar. 20 20 $135 9 Federal Intermediate " " Credit Bank deb. "1 " " 2% - 1/5/59 3. 6 5-10/l/5B(a) * E R (a) Approximate. Rights expired. Refunding., Outstanding issue-reopened. 100 2.00) 100 27/32 1.95) ($58 million new money.) Authorized for public release by the FOMC Secretariat on 2/25/2020 3 NEW SECURITY ISSUES - (Continued) Moody's Date Pating *Awarded Am't Issue @ *Reoffered @ Price Yield Initial Reception -1958Municipal Mar, Bonds Los Angeles Metrop, Transit Auth Seattle, Wash. Water Rev. Miami, Fla, 1961-70 & 83 1960-88 1960-88 5,97%# 3.11% 3.75-5.25&5,75% 1.75-3.75% 18o-3.6o(to 1978) 20 Mississippi-School 1959-"73 2.68% 1.10-2.90% A 1959-78 1959-86 1959-68 1958-72 1961-84 1959-78 1963-93 3.09% 1.30-3.35% 3.12% 1.25-3.25% 1.10-2.60% 1.00-2.80% 1.70-3.30% .90-2.70% 2.00-3.50(1992)&3.90% 3 Ba 4 5 A A 6 Aa $40 20 13 15 Newark, N.J.-Var. purpose G.O. 1 19 20 25 25 26 Aa 10 Milwaukee, Wisc.-water rev. A Aa Aa Aaa A 8 32 12 49 7 West Virginia-Veterans bonus Ohio - Major Thoroughfare Orlando Utilities Com. Fla.-Rev. New York State-Var. purpose G.O. 27 Aaa 10 Buffalo, 11 18 Iouisiana-highway 3.63% 2.38% 2.56% 3.21% 2.41% 3.34% (l%-1993) Federal Reserve Bank of New York, Securities Department, March 31, 1958. N.Y. G0.. .85-2.60 1959-73 * G.O. # Approximate. General obligations. Negotiated with underwriters. Well received. $3.0 million unsold. 1% bonds of 1979-88 not reoffered$3.0 mil. unsold. $1.0 million unsold after fair start. About 1/2 sold. All sold. $3 million unsold. $15 million unsold. $7.9 million unsold. $32.0 million unsold. $2.0 million unsold. $2.5 million unsold.
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