The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK O F N EW YORK Fiscal Agent of the United States r C ircular No. 5 0 1 6 T M arch 29, 1961 J L O FFE R IN G OF T W O SERIES OF T R E A S U R Y BILLS $1,100,000,000 o f 91-Day Bills, Additional Amount, Series Dated Jan. 5, 1961, Due July 6, 1961 (T o Be Issued April 6, 1961) $500,000,000 o f 182-Day Bills, Dated April 6, 1961, D ue October 5, 1961 T o A ll In corporated Banks and T ru st Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: 4 Following is the text of a notice issued by the Treasury Department, released for publication today at p.m., Eastern Standard time: T h e T re a su ry D epartm ent, by this pu blic n otice, invites tenders fo r tw o series o f T reasu ry bills to the a ggregate am ount o f $1,600,000,000, o r thereabouts, fo r cash and in exch an ge for T re a su ry bills m aturing A p ril 6, 1961, in the am ount o f $1,501,013,000, as f o llo w s : 91-day bills (to m aturity date) t o be issued A p ril 6, 1961, in the am ount o f $1,100,000,000, or thereabouts, repre senting an a dd ition al am ount o f bills dated January 5, 1961, and to mature July 6, 1961, o rig in a lly issued in the am ount o f $500,236,000, the a dd ition al and origin a l bills to be freely interchangeable. 182-day b ills, fo r $500,000,000, or thereabouts, to be dated A p ril 6, 1961, and to mature O ctober 5, 1961. T h e bills o f both series w ill be issued on a discou nt basis u nder com petitive and n on com petitive bid d in g as h ereinafter p rovid ed , and at m aturity their fa ce am ount w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in denom inations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T en ders w ill be received at Federal R eserve Banks and B ran ches up to the clo s in g hour, on e-thirty o ’c lo ck p.m., E a st ern Standard tim e, M on day, A p ril 3, 1961. T en ders w ill not be receiv ed at the T reasu ry D epartm ent, W ash ington. E ach tender must be fo r an even m ultiple o f $1,000, and in the ca se o f com petitive tenders the p rice offered must be expressed o n the basis o f 100, w ith n ot m ore than three decim als, e.g., 99.925. F raction s m ay n ot be used. It is u rged that tenders be m ade on the printed form s and forw a rd ed in the special envelopes w hich w ill be supplied by F ed eral R eserve Banks o r B ran ches on a pp lication th erefor. O thers than banking institutions w ill n ot be perm itted to subm it tenders e xcep t fo r their ow n account. T en ders w ill be receiv ed w ith ou t deposit from in corpora ted banks and trust com panies and from respon sible and recogn ized dealers in in vestm ent securities. T en ders from others must be accom panied b y paym ent o f 2 percent o f the fa ce am ount o f T reasu ry bills applied fo r, unless the tenders are accom panied by an express gu aranty o f paym ent by an in corporated bank or trust com pany. Im m ediately a fter the clo s in g h our, tenders w ill be opened at the F ed eral R eserve Banks and B ranches, fo llo w in g w hich p u b lic announcem ent w ill be m ade by the T rea su ry D epartm ent o f the am ount and price range o f a ccep ted bids. T h ose sub m ittin g tenders w ill be advised o f the acceptance o r rejection thereof. T h e S ecretary o f the T reasu ry exp ressly reserves the righ t to accep t o r reject any or a ll tenders, in w hole or in part, and his a ction in any such respect shall be final. S u b ject to these reservations, n on com petitive tenders fo r $200,000 o r less fo r the a dd ition al bills dated January 5, 1961, (91 days re m ain in g until m aturity date on July 6, 1961) and n on com petitive tenders fo r $100,000 o r less fo r the 182-day bills w ithout stated p rice fro m any one bidder w ill be a ccep ted in fu ll at the a verage price (in three decim als) o f a ccep ted com petitive bids for the respective issues. Settlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids must be m ade or com pleted at the F ederal R eserve Bank on A p ril 6, 1961, in cash or other im m ediately available funds o r in a like face am ount o f T reasu ry bills m aturing A p ril 6, 1961. Cash and exch a n ge tenders w ill receive equal treatment. Cash adjustm ents w ill be made fo r differences betw een the par value o f m aturing bills a ccep ted in exch a n ge and the issue price o f the new bills. T h e in com e derived from T reasu ry b ills, w hether interest o r gain fro m the sale or oth er d isp osition o f the b ills, does not have any exem ption, as such, and loss fro m the sale o r other disp osition o f T reasu ry bills does n ot have any sp ecia l treat ment, as such, under the Internal R even ue C ode o f 1954. T he bills are subject to estate, inheritance, g ift or oth er excise taxes, whether F ed eral o r State, but are exem pt from all ta x a tion n ow or hereafter im posed on the principal or interest th ereof by any State, or any o f the possessions o f the U nited States, or by any lo ca l ta x in g authority. F o r purposes o f ta x a tion the am ount o f discou nt at w h ich T reasu ry bills are o rig in a lly sold by the U n ited States is con sid ered to be interest. U n der Sections 4 5 4(b) and 1221(5) o f the Internal Revenue C ode o f 1954 the am ount o f discou n t at w h ich bills issued hereunder are sold is n ot con sidered to a ccru e u ntil such bills are sold, redeem ed o r oth erw ise disp osed o f, and such bills are exclu d ed from con sidera tion as capital assets. A cco rd in g ly , the ow n er o f T rea su ry bills (oth er than life insurance com pan ies) issued hereunder need include in his in com e ta x return on ly the difference betw een the price paid fo r such bills, whether on orig in a l issue o r on subsequent purchase, and the am ount actu ally received either upon sale o r redem ption at m aturity d u rin g the ta x ab le yea r fo r w hich the return is m ade, as ord in a ry gain o r loss. T reasu ry D epartm ent C ircu la r N o. 418, R evised , and this n otice, prescrib e the terms o f the T reasu ry bills and govern the con dition s o f th eir issue. C opies o f the circu la r m ay be obtain ed from any F ed eral R eserve B ank o r B ranch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, April 3, 1961, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. R e su lts o f th e last o ffe r in g o f T r e a s u r y b ills (9 1 -d a y b ills to b e issu ed M a rch 30, 1961, r e p re se n tin g an a d d ition a l a m o u n t o f b ills d a ted D e c e m b e r 29, 1960, an d m a tu rin g J u ne 29, 1 961; an d 182-day b ills dated M a rch 30, 1961, m a tu rin g S e p te m b er 28, 1961) are s h o w n o n th e re v e rse side o f th is circu la r. A lfred H ayes , President. ( over ) RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED MARCH 30, 1961) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing June 29, 1961 P rice ........ High Low ....................... ........ Average ............... ........ 182-Day Treasury Bills Maturing September 28, 1961 A p p ro x . equiv. annual rate 99.405 99.390 99.395 P r ice 2.354% 2.413% 2.392%1 A p p ro x . equiv. annual rate 98.716 98.694 98.698 2.540% 2.583% 2.576%! 1 O n a cou pon issue o f the sam e length and fo r the same am ount invested, the return on these bills w ould provide yield s o f 2.44 percent fo r the 91-day b ills, and 2.65 percent for the 182-day bills. Interest rates on bills are quoted in term s o f bank discou nt, w ith the return related to the fa ce am ount o f the bills payable at m aturity rather than the amount invested, and th eir length in actual num ber o f days related to a 360-day year. In con tra st, yield s on certificates, notes, and bonds are com pu ted in term s o f interest on the am ount invested, and relate the num ber o f days rem ainin g in an interest paym ent p eriod to the actual num ber o f days in the period, w ith sem iannual com p ou n d in g if m ore than one cou pon period is in volved. (73 percent of the amount of 91-day bills bid for at the low price was accepted.) (40 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing June 29, 1961 A pplied for D istrict Boston ......................... ........ $ 35,599,000 182-Day Treasury Bills Maturing September 28, 1961 A ccepted $ 23,559,000 A pplied for $ 968,000 A ccep ted $ 818,000 New Y o r k ................... ........ 1,416,132,000 738,462,000 878,848,000 409,348,000 Philadelphia ............... ........ 25,293,000 10,212,000 7,287,000 2,269,000 ................... ........ 49,053,000 24,053,000 19,820,000 14,739,000 Richmond ................... ........ 18,666,000 18,666,000 11,214,000 7,164,000 A tla n ta ......................... ........ 20,577,000 20,096,000 4,954,000 3,393,000 Chicago ....................... ........ 178,801,000 112,951,000 68,037,000 27,342,000 St. Louis ..................... ........ 21,573,000 19,073,000 3,754,000 3,254,000 Minneapolis ............... ........ 14,640,000 10,890,000 5,067,000 1,067,000 Kansas City ............... ........ 41,550,000 38,550,000 12,624,000 5,979,000 D a lla s........................... ........ 11,374,000 11,374,000 3,832,000 2,632,000 San Francisco ........... 90,766,000 72,135,000 29,990,000 22,080,000 Cleveland Total ........... ........ $1,924,024,000 $1,100,021,000“ $1,046,395,000 a Includes $176,908,000 noncompetitive tenders accepted at the average price of 99.395. b Includes $35,959,000 noncompetitive tenders accepted at the average price of 98.698. $500,085,000b
@FedFRASER