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FEDERAL RESERVE BANK OF NEW YORK
Fiscal A g en t of the U nited States
rC ircular N o. 5 3 4 4 ~
1
L
June 12, 1963
J

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated March 21,1963, Due September 19,1963
(To Be Issued June 20, 1963)
$800,000,000 of 182-Day Bills, Dated June 20, 1963, Due December 19, 1963
To All Incorporated, Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Daylight Saving time:
The Treasury Department, by this public notice, invites
tenders for tw o series of Treasury bills to the aggregate
amount of $2,100,000,0U0, or thereabouts, for cash and in ex­
change for Treasury bills maturing June 20, 1963, in the amount
of $2,101,293,000, as follow s:
91-day bills (to maturity date) to be issued June 20,
1963, in the amount of $1,300,000,000, or thereabouts,
representing an additional amount of bills dated
March 21, 1963, and to mature September 19, 1963,
originally issued in the amount of $800,595,000, the
additional and original bills to be freely interchange­
able.
182-day bills, for $800,000,000, or thereabouts, to be
dated June 20, 1963, and to mature D ecem ber 19, 1963.
The bills of both series will be issued on a discount basis
under competitive and noncom petitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. T h ey will be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern D ay­
light Saving time, M onday, June 17, 1963. Tenders will not be
received at the Treasury Department, W ashington. Each tender
must be for an even multiple of $1,000, and in the case of com ­
petitive tenders the price offered must be expressed on the basis
of 100, with not more than three decimals, e.g., 99.925. Fractions
may not be used. It is urged that tenders be made on the
printed forms and forwarded in the special envelopes which will
be supplied by Federal Reserve Banks or Branches on applica­
tion therefor.
Banking institutions generally may submit tenders for
account of customers, provided the names of the customers are
set forth in such tenders. Others than banking institutions will
not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment o f 2 percent of the face amount of
Treasury bills applied for, unless the tenders are accompanied
by an express guaranty o f payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, follow ing which
public announcement will be made by the Treasury Department

of the amount and price range of accepted bids. Those submit­
ting tenders will be advised of the acceptance or rejection
thereof. The Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part,
and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for $200,000 or less
for the additional bills dated March 21, 1963 (91 days remaining
until maturity date on September 19, 1963) and noncom petitive
tenders for $100,000 or less for the 182-day bills without stated
price from any one bidder will be accepted in full at the aver­
age price (in three decimals) of accepted competitive bids for
the respective issues. Settlement for accepted tenders in accord­
ance with the bids must be made or com pleted at the Federal
Reserve Bank on June 20, 1963, in cash or other immediately
available funds or in a like face amount of Treasury bills matur­
ing June 20, 1963. Cash and exchange tenders will receive equal
treatment. Cash adjustments will be made for differences
between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The incom e derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposi­
tion o f Treasury bills does not have any special treatment, as
such, under the Internal Revenue Code o f 1954. The bills are
subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exempt from all taxation now or here­
after im posed on the principal or interest thereof by any State,
or any of the possessions of the United States, or by any local
taxing authority. For purposes of taxation the amount o f dis­
count at which Treasury bills are originally sold by the United
States is considered to be interest. Under Sections 454(b) and
1221(5) of the Internal Revenue Code o f 1954 the amount of
discount at which bills issued hereunder are sold is not con ­
sidered to accrue until such bills are sold, redeemed or other­
wise disposed of, and such bills are excluded from consideration
as capital assets. A ccordingly, the ow ner of Treasury bills
(other than life insurance companies) issued hereunder need
include in his incom e tax return only the difference between the
price paid for such bills, whether on original issue or on subse­
quent purchase, and the amount actually received either upon
sale or redemption at maturity during the taxable year for
which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies o f the circular may
be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 17,
1963, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective
series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked
“ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may
not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury
7 ax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing
Treasury bills.
Results of the last offering of Treasury bills (91-day bills to be issued June 13, 1963, representing an additional
amount of bills dated March 14, 1963, and maturing September 12, 1963; and 182-day bills dated June 13, 1963, matur­
ing December 12, 1963) are shown on the reverse side of this circular.




A

lfred

H

ay es

,

President.
( over)

RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
JUNE 13, 1963)

R a n g e o f A c c e p te d

C o m p e t it iv e

B id s

91-Day Treasury Bills
Maturing September 12, 1963

Price

182-Day Treasury Bills
Maturing Decem ber 12, 1963

A pprox. equiv.
annual rate

Price

A pprox. equiv.
annual rate

............................ ......................

99.254

2.951%

98.458

3.050%

.............................. ......................

99.245

2.987%

98.448

3.070%

Average ........................ ......................

99.248

2.975%*

98.452

3.063% !

H igh
Low

1 On a coupon issue o f the same length and for the same amount invested, the return on these bills would provide yields
of 3.04 percent for the 91-day bills, and 3.15 percent for the 182-day bills. 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 num ber of days remaining in an interest payment period to the
actual number of days in the period, with semiannual com pounding if more than one coupon period is involved.

(53 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(59 percent of the amount of 182-day bills
bid for at the low price was accepted.)

T o t a l T e n d e r s A p p l i e d f o r a n d A c c e p t e d ( B y F e d e r a l R e s e rv e D is t r ic t s )

91-Day Treasury Bills
Maturing September 12, 1963
District

Applied for

.......................... ...........

Boston

New Y ork ................... ...........

$

27,577,000
1,553,198,000

182-Day Treasury Bills
Maturing Decem ber 12, 1963
Applied for

Accepted

$

17,577,000
853,398,000

$

21,296,000
1,163,615,000

Accepted

$

4,296,000
606,455,000

Philadelphia ................. ...........

31,957,000

16,957,000

11,849,000

6,849,000

..................... ...........

29,143,000

29,143,000

25,055,000

22,464,000

Richmond ...................... ...........

10,905,000

10,905,000

4,426,000

3,406,000

13,789,000

13,379,000

Cleveland

.......................... ...........

45,562,000

42,152,000

Chicago .......................... ...........

215,053,000

146,293,000

108,853,000

45,393,000

St. L o u i s ........................ ...........

30,442,000

24,972,000

6,990,000

5,285,000

................. ...........

19,842,000

18,137,000

6,679,000

5,474,000

Kansas City ................. ...........

27,717,000

23,717,000

9,160,000

5,119,000

............................ ...........

34,163,000

30,223,000

9,127,000

6,717,000

102,780,000

86,640,000

94,782,000

76,092,000

Atlanta

Minneapolis
Dallas

San Francisco

.............

Total ............. ...........

$2,128,339,000

$1,300,114,000a

$1,475,621,000

a Includes $243,896,000 noncompetitive tenders accepted at the average price o f 99.248.
b Includes $57,468,000 noncompetitive tenders accepted at the average price o f 98.452.




$800,929,000b


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102