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F E D E R A L R E S E R V E BA N K O F N EW Y O R K Fiscal Agent of the United States r Circular No. 5 2 0 3 *1 L July 11, 1962 J Results of Refunding of $2 Billion of One-Year Bills To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: The Treasury Department announced last evening that the tenders for $2,000,000,000, or thereabouts, of 365-day Treasury bills to be dated July 15, 1962, and to mature July 15, 1963, which were offered on July 2, were opened at the Federal Reserve Banks on July 10. The details of this issue are as follows: Total applied f o r . . Total accepted . . . . $3,719,072,000 $2,000,393,000 (includes $221,574,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting five tenders totaling $2,675,000) : High ........................ 96.730 L o w .......................... 96.682 Average .................. 96.698 Equivalent rate of discount approx. 3.225% per annum Equivalent rate of discount approx. 3.273% per annum Equivalent rate of discount approx. 3.257% per annum1 (85 percent of the amount bid for at the low price was accepted.) Federal Reserve District Boston ................................ ................ New York .......................................... Philadelphia ...................................... Cleveland .......................................... Richmond .......................................... Atlanta .............................................. Chicago .............................................. St. L o u i s ............................................ Minneapolis ...................................... Kansas City ...................................... Dallas ................................................ San Francisco .................................. T o t a l ........................................ Total applied for Total accepted $ 100,927,000 2,456,472,000 43,605,000 221,738,000 22,610,000 42,710,000 524,386,000 22,838,000 31,885,000 49,782,000 38,668,000 163,451,000 $ $3,719,072,000 65,427,000 1,198,397,000 14,305,000 163,238,000 16,010,000 35,310,000 355,636,000 16,834,000 5,885,000 34,782,000 26,518,000 68,051,000 $2,000,393,000 1 On a coupon issue o f the same length and for the same amount invested, the return on these bills would provide a yield o f 3.39 percent. Interest rates on bills are quoted in terms of bank discount, with the return related to the face amount o f 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 o f interest on the amount invested, and relate the number of days remaining in an interest payment period to the actual number o f 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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