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FE D E R AL R E S E R V E BANK O F N E W YORK Fiscal Agent of the United States r Circular No. 5 1 7 7 "I L April 11, 1962 J Results of Refunding of $2 Billion of One-Year Bills To All Incorporated Banlcs and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The Treasury Department announced last evening that the tenders for $2,000,000,000, or thereabouts, of 365-day Treasury bills to be dated April 15, 1962, and to mature April 15, 1963, which were offered on April 3, were opened at the Federal Reserve Banks on April 10. The details of this issue are as follows: Total applied for .. Total accepted . . . . $3,453,408,000 $2,000,446,000 (includes $159,176,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: High ........................ 97.041 Low .......................... 97.002 Average 97.017 .................. Equivalent rate of discount approx. 2.918% per annum Equivalent rate of discount approx. 2.957% per annum Equivalent rate of discount approx. 2.943% per annum1 (86 percent of the amount bid for at the low price was accepted.) Federal Reserve District Boston ................................................ New York .......................................... Philadelphia ...................................... Cleveland .......................................... Richmond .......................................... Atlanta .............................................. Chicago .............................................. Saint L o u is ........................................ Minneapolis ...................................... Kansas City ...................................... D a lla s.................................................. San F rancisco.................................... T o t a l .......................................... Total applied for $ Total accepted 29,614,000 2,450,984,000 46,179,000 158,894,000 26,233,000 23,379,000 413,778,000 22,597,000 30,460,000 39,386,000 30,914,000 180,990,000 $ $3,453,408,000 18,614,000 1,540,322,000 11,179,000 93,894,000 17,733,000 15,379,000 169,478,000 16,497,000 20,460,000 23,186,000 14,714,000 58,990,000 $2,000,446,000 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield of 3.05 percent. Interest rates on bills are quoted in terms of 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 of days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed in terms of interest on the amount invested, and relate the number of days remaining in an interest 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.
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