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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent o f the United States r Circular No. 5 1 3 6 "I L January 10, 1962 j Results of Bidding for Treasury’s One-Year Bill Offering To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: T he T r e a su r y D ep artm en t a n n ou n ced last even in g that the ten ders fo r $2,000,000,000, o r th ereabou ts, o f 365-day T r e a s u r y bills to be dated J a n u a ry 15, 1962, and to m ature J a n u a ry 15, 1963, w hich w ere o ffe re d on J a n u a ry 3, w ere op en ed at the F e d e ra l R e se rv e B an ks on J a n u a ry 9. T h e deta ils o f this issue are as fo llo w s : Total applied for . . Total accepted . . . . $3,649,647,000 $2,000,032,000 (includes $189,199,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting 4 tenders totaling $4,120,000) : High ........................ 96.614 Low .......................... 96.572 Average 96.588 .................. Equivalent rate of discount approx. 3.340% per annum Equivalent rate of discount approx. 3.381% per annum Equivalent rate of discount approx. 3.366%> per annum1 (49 percent of the amount bid for at the low price was accepted) Federal Reserve District Total applied for Boston .................................. .............. $ 64,599,000 New York ........................................ 2,574,105,000 Philadelphia ...................................... 52,954,000 Cleveland .......................................... 171,466,000 Richmond .......................................... 41,146,000 Atlanta ............................................... 47,078,000 Chicago ............................................... 322,506,000 St. L o u i s ............................................. 24,296,000 Minneapolis ....................................... 36,980,000 Kansas City ...................................... 61,946,000 Dallas ................................................. 37,176,000 San F ran cisco..................................... 215,395,000 T otal ........................................ $3,649,647,000 Total accepted $ 33,099,000 1,441,350,000 22,954,000 85,946,000 27,046,000 39,828,000 127,956,000 15,406,000 17,930,000 37,946,000 22,176,000 128,395,000 $2,000,032,000 On a coupon issue of the same length and for the same amount invested, the return on these bills \\ou a provide a yield of 3.50 percent. Interest rates on bills are quoted in terms of bank discount, with le return related to the face amount of the bills payable at maturity rather than the amount invested, _ f ir, j 111 actual number of days related to a 360-day year. In contrast, yields on certificates, es, an onds are computed in terms of interest on the amount invested, and relate the number of ^ mtere*t payment period to the actual number of days in the period, with semi annual compounding if more than one coupon period is involved. A lfred H ayes , President. RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 11, 1962) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing April 12, 1962 Price Approx. equiv. annual rate 99.296a High .. . 182-Day Treasury Bills Maturing July 12,1962 Price 2.785% A pprox. equiv. annual rate 98.460b 3.046% L ow .. . 99.283 2.836% 98.438 3.090% Average 99.286 2.823%! 98.447 3.073%! a Excepting one tender o f $100,000. b Excepting two tenders totaling $312,000. 1 On a coupon issue o f the same length and for the same amount invested, the return on these bills would provide yields o f 2.88 percent for the 91-day bills, and 3.16 percent for the 182-day bills. Interest rates on bills are quoted in terms o f bank discount, with the return related to the face amount of the bills payable at 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 computed in terms o f interest on the amount invested, and relate the number o f days remaining in an interest payment period to the actual number o f days in the period, with semiannual compounding if more than one coupon period is involved. (45 percent of the amount of 182-day bills bid for at the low price was accepted.) (70 percent of the amount of 91-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 April 12, 1962 District Accepted Applied for Boston ........................ .......... $ 41,472,000 182-Day Treasury Bills Maturing July 12, 1962 $ 36,872,000 Applied for $ Acccpted 13,278,000 $ 13,278,000 New Y o r k .................. .......... 1,493,437,000 648,657,000 917,483,000 464,683,000 Philadelphia .............. .......... 28,760,000 13,760,000 12,421,000 7,421,000 C le v e la n d .................... .......... 62,038,000 43,538,000 18,632,000 13,632,000 Richm ond .................. .......... 14,747,000 14,747,000 2,198,000 2,198,000 A tla n t a ........................ .......... 24,368,000 22,128,000 8,999,000 8,799,000 Chicago ...................... .......... 237,090,000 175,190,000 102,067,000 46,517,000 St. Louis ...................... .......... 36,387,000 30,087,000 8,468,000 6,468,000 Minneapolis .......................... 21,870,000 15,570,000 5,650,000 4,150,000 Kansas City ................ .......... 38,236,000 27,236,000 8,380,000 8,280,000 D a lla s ............................ .......... 24,600,000 22,300,000 4,636,000 4,636,000 San Francisco ............ 84,278,000 50,278,000 30,227,000 19,977,000 Total ............ ........ $2,107,283,000 $1,100,363,000c $1,132,439,000 c Includes $245,336,000 noncompetitive tenders accepted at the average price o f 99.286. d Includes $57,962,000 noncompetitive tenders accepted at the average price of 98.447. $600,039,000d
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