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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 5 4 '1 L November 8, 1962 j Results of Bidding for $1 B illion Strip of Treasury 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 tenders for additional amounts of ten series o f Treasury bills to an aggregate amount of $1,000,000,000, or thereabouts, to be issued November 15, 1962, which were offered on November 1, were opened at the Federal Reserve Banks on November 7. The amount of accepted tenders will be equally divided among the ten regular weekly issues of outstanding Treasury bills maturing Janu ary 17, 1963 to March 21, 1963, inclusive. The details of the offering are as follows: Total applied for Total accepted . . . $2,409,960,000 $1,001,210,000 (includes $13,160,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: Price H ig h .......................................... Low .......................................... A v e r a g e .................................... Approximate equivalent annual rate of discount based on 94.5 days (average number o f days to maturity) 99.258 99.245 99.248 2.827% 2.876% 2.866%! (18 percent of the amount bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) District Applied for B o sto n .................................................. New York .......................................... Philadelphia ...................................... Cleveland ............................................ R ich m on d ............................................ A t la n ta ................................................ C h icago................................................ St. Louis ............................................ Minneapolis ............ ............................ Kansas C i t y ........................................ Dallas .................................................. San Francisco .................................... $ 31,450,000 2,010,220,000 10,310,000 32,470,000 21,050,000 16,860,000 144,440,000 8,240,000 12,960,000 12,660,000 21,100,000 88,200,000 T o t a l ........................................ Accepted $ $2,409,960,000 25,750,000 853,020,000 310,000 27,470,000 13,410,000 6,950,000 27,680,000 1,740,000 6,140,000 1,660,000 1,280,000 35,800,000 $1,001,210,000 1 On a coupon issue of the same length as the average for the bills, and for the same amount invested, the return on these bills would provide a yield o f 2.93 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 o f interest on the amount invested, and relate the number of days remaining in an interest payment period to the ar-tual number o f days in the period, with semiannual compounding if more than one coupon period is involved. A lfred H ayes, President.
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