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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
("Circular N o. 5 3 4 6
L
June 19, 1963
}
OFFERING OF TWO SERIES OF TREASURY BILLS
$1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated March 28,1963, Due September 26,1963
(To Be Issued June 27, 1963)
$800,000,000 of 182-Day Bills, Dated June 27, 1963, Due December 26, 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 $2,100,000,000, or thereabouts, for cash and in ex
change for Treasury bills maturing June 27, 1963, in the amount
of $2,102,416,000, as follow s:
91-day bills (to maturity date) to be issued June 27,
1963, in the amount of $1,300,000,000, or thereabouts,
representing an additional amount of bills dated
M arch 28, 1963, and to mature September 26, 1963,
originally issued in the amount of $800,046,000, the
additional and original bills to be freely interchange
able.
182-day bills, for $800,000,000, or thereabouts, to be
dated June 27, 1963, and to mature Decem ber 26, 1963.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. Th 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 24, 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 form s 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 ow n 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 of 2 percent o f 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. T h ose submit
ting tenders will be advised o f 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 28, 1963 (91 days remaining
until maturity date on September 26, 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 27, 1963, in cash or other immediately
available funds or in a like face amount of Treasury bills matur
ing June 27, 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 o f 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 of 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 o f 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 ccordin gly, the owner 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 o f the Treasury bills and
govern the conditions of their issue. Copies of 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 24,
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
Tax 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 I reasury bills (9 1 -day bills to be issued June 20, 1963, representing an additional
amount of bills dated March 21, 1963, and maturing September 19, 1963; and 182-day bills dated June 20, 1963, matur
ing December 19, 1963) are shown on the reverse side of this circular.
A
lfred
H
ayes,
President.
(over)
RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
JUNE 20, 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 19,1963
Price
182-Day Treasury Bills
Maturing Decem ber 19, 1963
A pprox. equiv.
annual rate
Price
Approx. equiv.
annual rate
H igh
............................ .....................
99.245a
2.987%
98.452
3.062%
L ow
.............................. ......................
99.241
3.003%
98.440
3.086%
Average ........................ .....................
99.242
2.99 7% 1
98.442
3.081% !
a Excepting one tender of $300,000.
1 On a coupon issue o f the same length and for the same amount invested, the return on these bills would provide yields
o f 3.06 percent for the 91-day bills, and 3.17 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 of 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 com pounding if more than one coupon period is involved.
(27 percent of the amount of 91-day bills
bid for at the low price was accepted.)
(22 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 i s t r ic t s )
District
.......................... ...........
$
91-Day Treasury Bills
Maturing September 19,1963
182-Day Treasury Bills
Maturing Decem ber 19, 1963
Applied for
Applied for
14,748,000
Accepted
$
14,478,000
20,209,000
$ 16,309,000
1,067,613,000
645,293,000
12,956,000
13,242,000
8,242,000
32,195,000
18,810,000
12,771,000
12,979,000
10,761,000
2,761,000
50,352,000
39,087,000
9,985,000
9,517,000
Chicago .......................... ...........
235,752,000
126,642,000
104,103,000
41,983,000
St. L o u i s ........................ ...........
32,676,000
26,130,000
10,575,000
9,075,000
................. ...........
14,078,000
8,618,000
5,902,000
2,902,000
Kansas City ................. ...........
28,269,000
26,539,000
7,835,000
7,150,000
............................ ...........
26,288,000
17,558,000
9,799,000
5,980,000
.............
117,890,000
70,836,000
85,820,000
38,467,000
Total .............
$2,303,207,000
Boston
New Y ork ................... ...........
1,702,382,000
Philadelphia ................. ...........
29,343,000
..................... ...........
32,450,000
Richmond ..................... ...........
18,979,000
.......................... ...........
Cleveland
Atlanta
Minneapolis
Dallas
San Francisco
912,737,000
$l,300,755,000b
$
Accepted
$1,364,654,000
b Includes $242,683,000 noncompetitive tenders accepted at the average price o f 99.242.
c Includes $60,846,000 noncompetitive tenders accepted at the average price o f 98.442.
$800,450,000°
@FedFRASER