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F E D E R A L R E S E R V E BANK O F N EW Y O R K Fiscal Agent of the United States r Circular N o. 5 2 3 1 '1 L September 27, 1962 J Results of Treasury’s Offering of $3 Billion 170-Day Tax Anticipation Bills To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: The following statement was issued by the Treasury Department and released for publication in this morning’s newspapers: The Treasury Department announced last evening that the tenders for $3,000,000,000, or thereabouts, of Tax Anticipation Series 170-day Treasury bills, to be dated October 3, 1962, and to mature March 22, 1963, which were offered on September 20, were opened at the Federal Reserve Banks on September 26. The details of this issue are as follows: Total applied fo r.. Total accepted . . . . $5,941,541,000 $3,000,991,000 (includes $562,546,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting two tenders totaling $3,100,000) : High ....................... 98.820 Low ......................... 98.757 Average .................. 98.765 Equivalent rate of discount approx. 2.499% per annum Equivalent rate of discount approx. 2.632% per annum Equivalent rate of discount approx. 2.616% per annum1 (25 percent of the amount bid for at the low price was accepted) Federal Reserve District Total applied for Total accepted Boston .............................................. New Y o r k ......................................... Philadelphia ..................................... Cleveland ......................................... Richmond ........................................ Atlanta ............................................. Chicago ............................................. St. Louis .......................................... Minneapolis ..................................... Kansas City ..................................... Dallas .............................................. San Francisco ................................. $ 256,794,000 2,760,530,000 236,515,000 503,373,000 138,772,000 225,610,000 690,665,000 153,490,000 187,838,000 94,203,000 290,880,000 402,871,000 96,619,000 1,144,205,000 111,515,000 296,873,000 97,047,000 149,410,000 449,265,000 85,390,000 116,338,000 78,778,000 219,330,000 156,221,000 T o t a l ................................................. $5,941,541,000 $3,000,991,000 $ 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 2.69 percent. 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 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 remain ing 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. A lfred H ayes, President.