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FEDERAL RESERVE BANK OF NEW YORK F isca l A g e n t o f th e U n ite d S tates [ Circular N o. 5 0 9 6 "I O ctober 11, 1961 J Results of Bidding for 364-Day Treasury Bills, Dated October 16, 1961 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 364-day Treasury bills to be dated October 16, 1961, and to mature October 15, 1962, which were offered on October 3, were opened at the Federal Eeserve Banks on October 10. The details of this issue are as follow s: Total applied fo r . . Total accepted . . . . $3,756,227,000 $2,000,863,000 (includes $138,931,000 entered on a non competitive basis and accepted in full at the average price shown below) Range o f accepted competitive bids (excepting one tender o f $100,000) : H igh .......................... 97.037 Low ............................ 96.979 Average 96.992 ................... Equivalent rate of discount approx. 2.930% per annum Equivalent rate of discount approx. 2.988% per annum Equivalent rate o f discount approx. 2.975% per annum1 (95 percent of the amount bid fo r at the low price was accepted) Federal R eserve D istrict Total applied fo r Boston .................................... ............... New Y ork ............................................. Philadelphia ......................................... Cleveland ............................................. Richmond ............................................. Atlanta ................................................. Chicago ................................................. St. L o u i s ............................................... Minneapolis ......................................... Kansas City ......................................... Dallas .................................................... San F r a n c is c o ....................................... $ 104,074,000 2,467,044,000 46,767,000 190,592,000 34,449,000 23,452,000 446,607,000 31,569,000 31,308,000 41,073,000 49,437,000 289,855,000 ........................................... $3,756,227,000 T o tal Total accepted $ 41,424,000 1,374,290,000 13,567,000 58,292,000 19,449,000 11,952,000 301,257,000 20,569,000 8,308,000 24,963,000 12,437,000 114,355,000 $2,000,863,000 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 3.09 percent. Interest rates on bills are quoted in terms o f bank discount, with the return related to the face 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 computed in terms o f interest on the amount invested, and relate the number o f days remaining in an interest paym ent period to the actual number o f days in the period, with semi annual com pounding i f more than one coupon period is involved. A lfred H ayes, President.