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FEDERAL RESER VE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 5 1 0 6 "1 U November 10, 1 96 1 J Results of Bidding for $800 Million Strip of 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 eight series of Treasury bills to an aggregate amount of $800,000,000, or thereabouts, to be issued November 15, 1961, which were offered on November 2, were opened at the Federal Reserve Banks on November 9. The amount of accepted tenders will be equally divided among the eight regular weekly issues of outstanding Treasury bills maturing December 7, 1961, to January 25,1962, inclusive. The details of the offering are as follow s: Total applied for .. Total accepted . . . . $1,519,424,000 $ 800,136,000 (includes $8,984,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: P rice High ........................ Low .......................... Average .................. A pproxim ate equivalent annual rate o f discount based on 46.5 days (average number o f days to m atu rity) 99.719 99.700 99.706 2.175% 2.323% 2.277%1 (79 percent of the amount bid for at the low price was accepted) Total Tenders Applied for and Accepted (By Federal Reserve Districts) D istrict Boston ................................................ New York .......................................... Philadelphia ...................................... Cleveland .......................................... Richmond .......................................... Atlanta .............................................. Chicago .............................................. St. Louis ............................................ Minneapolis ...................................... Kansas City ...................................... Dallas ................................................ San F ra n cisco.................................... T o tal ........................................ A pplied fo r $ 24,640,000 1,098,448,000 11,080,000 14,584,000 1,168,000 5,392,000 274,552,000 2,352,000 11,880,000 2,384,000 944,000 72,000,000 $1,519,424,000 A ccepted $ 7,968,000 603,648,000 11,080,000 13,744,000 1,168,000 3,792,000 108,384,000 2,184,000 5,680,000 2,384,000 944,000 39,160,000 $800,136,000 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 b ills would provide a yield o f 2.31 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 the maturity 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 number 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 a y e s, P r e s id e n t.
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