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F E D E R AL R E S E R V E BANK O F N E W YORK Fiscal A gen t o f the U nited States I" Circular No. 5 2 9 4 ~[ January 31, 1963 J L Results of Treasury’s $1 Billion 138-Day Tax Anticipation Bill Offering 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 m orning’s newspapers: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, o f Tax Anticipation Series 138-day Treasury bills to be dated February 6, 1963, and to mature June 24, 1963, which were offered on January 22, were opened at the Federal Reserve Banks on January 30. The details o f this issue are as fo llo w s : Total applied fo r Total accepted . . $2,061,518,000 $1,000,434,000 (includes $42,068,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids: H igh ...................... 98.891 Low ........................ 98.873 A v e r a g e ................. 98.877 Equivalent rate o f discount approx. 2.893% per annum Equivalent rate of discount approx. 2.940% per annum Equivalent rate o f discount approx. 2.929% per annum1 (58 percent of the amount bid fo r at the low price was accepted) Federal Reserve District Boston ................................................... New Y o r k ............................................... Philadelphia ......................................... C le v e la n d ............................................... Richmond ............................................. Atlanta ................................................. Chicago ................................................. St. L o u is ................................................. M in n e a p o lis ........................................... Kansas C i t y ........................................... D a ll a s ...................................................... San F r a n c is c o ....................................... T o t a l ............................................. Total applied for $ 27,370,000 1,652,659,000 23,405,000 20,101,000 2,202,000 15,927,000 159,127,000 12,485,000 19,832,000 15,420,000 24,300,000 88,690,000 $2,061,518,000 Total accepted $ 18,530,000 823,825,000 1,405,000 4,101,000 2,202,000 12,927,000 68,977,000 6,485,000 7,572,000 4,920,000 9,040,000 40,450,000 $1,000,434,000 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 3.00 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 o f 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 semiannual compounding if more than one coupon period is involved. A lfred H ayes, President.
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