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FE D E RA L RE SE R V E BANK OF NEW YORK Fiscal A g en t o f the U nited States r C ircu lar N o . 5 0 4 7 L Jun e 9 , 1961 Results of Bidding for $1.8 Billion Strip o f Treasury 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 tenders for additional amounts of 18 series o f Treasury bills to an aggregate amount of $1,800,000,000, or thereabouts, to be issued June 14, 1961, which were offered on June 2, were opened at the Federal Reserve Banks on June 8. The amount of accepted tenders will be equally divided among the 18 regular weekly issues of outstanding Treasury bills maturing August 3, 1961, to November 30, 1961, inclusive. The details of the offering are as follow s: Total applied fo r . . Total a c c e p t e d ----- $4,671,774,000 $1,800,972,000 (includes $187,842,000 entered on a non competitive basis and accepted in full at the average price shown below) Range o f accepted competitive b id s : Price H igh ........................ Low .......................... Average .................. Approximate equivalent annual rate o f discount based on 109.6 days (average number o f days to maturity) 99.305 99.292 99.297 (44 percent o f the amount bid 2.283% 2.326% 2.308%1 fo r at the low price was accepted) Total Tenders A p p lied for and A ccepted (B y Federal Reserve Districts) District Boston .................................................... New Y ork .......................................... Philadelphia ...................................... Cleveland .......................................... Richmond .......................................... Atlanta .............................................. Chicago .............................................. St. Louis ............................................ Minneapolis ...................................... Kansas City ...................................... Dallas ................................................ San F r a n c is c o .................................... T o t a l .................................................. Applied for Accepted $ 176,148,000 2,293,254,000 163,926,000 355,050,000 117,144,000 128,322,000 482,526,000 87,930,000 121,194,000 80,046,000 267,516,000 398,718,000 $ $4,671,774,000 83,628,000 652,176,000 65,844,000 153,810,000 33,840,000 55,296,000 362,142,000 31,374,000 72,144,000 40,212,000 157,176,000 93,330,000 $1,800,972,000 1 On a coupon issue o f the same length as the average fo r the bills and fo r the same amount invested, the return on these bills w ould provide a yield o f 2.36 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 at m aturity rather than the amount invested, and their length in actual number o f days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are com puted in terms o f interest on the amount invested, and 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 pound in g i f more than one coupon period is involved. A lfred H ayes, President.
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