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FED ERAL RE SE R V E BANK OF NEW YORK Fiscal Agent of the United States r Circular N o. 5 0 2 2 I April 13, 1961 Results of Refunding of $2 Billion of One-Year Bills To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: The Treasury Department announced last evening that the tenders for $2,000,000,000, or thereabouts, of 365-day Treasury bills to be dated A p ril 15, 1961, and to mature A pril 15, 1962, which were offered on A pril 6, were opened at the Federal Reserve Banks on A pril 12. The details o f this issue are as follow s: Total applied for . . Total accepted . . . . $4,116,451,000 $2,000,367,000 (includes $178,894,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting one tender of $1,500,000): High ....................... 97.171 Equivalent rate of discount approx. 2.790% per annum L o w ......................... 97.117 Equivalent rate of discount approx. 2.844% per annum Average .................. 97.134 Equivalent rate of discount approx. 2.827% per annum1 (81 percent of the amount bid for at the low price was accepted.) Federal R eserve D istrict Boston ............................................... New Y o r k ......................................... Philadelphia ..................................... Cleveland ......................................... Richmond ......................................... Atlanta ............................................. Chicago ............................................. St. L o u is ........................................... Minneapolis ..................................... Kansas City ..................................... Dallas ............................................... San Francisco ................................. T o t a l ..................................... Total applied f o r $ 86,818,000 2,682,215,000 57,591,000 225,551,000 37,904,000 74,745,000 522,032,000 24,797,000 27,570,000 52,284,000 39,021,000 285,923,000 $4,116,451,000 Total accepted $ 31,818,000 1,344,345,000 20,191,000 72,491,000 17,804,000 35,495,000 230,793,000 13,247,000 7,370,000 27,169,000 22,921,000 176,723,000 $2,000,367,000 1 On a coupon issue o f the same length and fo r the same amount invested, the return on these bills would provide a yield o f 2.93 percent. Interest rates on bills are quoted in terms o f bank discount, with the return related to the fa ce amount o f the bills payable a t maturity rather than the amount invested, and their length in actual number o f days related to a 360-day year. I n contrast, yields on certificates, notes, and bonds are computed in terms o f interest on the amount invested, an d relate the number o f days rem aining in an interest paym ent period to the actual num ber o f days in the period, with semiannual com pounding i f more than one coupon period is involved. A l fr e d H ayes, President. ~[ J
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