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F E D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 4 0 0 T U October 10, 1963 J Results of Treasury’s $2 Billion 160-Day Tax Anticipation Bill Offering To All Incorporated Banlcs 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 $2,000,000,000, or thereabouts, of Tax Anticipation Series 160-day Treasury bills to be dated October 15, 1963, and to mature March 23, 1964, which were offered on October 2, were opened at the Federal Reserve Banks on October 9. The details of this issue are as follows: Total applied for $2,957,324,000 Total accepted .. $2,000,487,000 (includes $131,424,000 entered on a non competitive basis and accepted in fullat the average price shown below) Range of accepted competitive bids: Equivalent rate of discount approx. High ....... 98.437 3.517% per annum Low ........ 98.421 Equivalent rate of discount approx. 3.553% per annum Average ..... 98.428 Equivalent rate of discount approx. 3.537% per annum1 (93 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Total accepted Boston ................. New York................ Philadelphia .............. Cleveland ............... Richmond ............... Atlanta................. Chicago ................ St. Louis ................ Minneapolis .............. Kansas City ............. Dallas .................. San Francisco............. $ 77,186,000 2,348,499,000 25,578,000 33,738,000 14,759,000 32,090,000 251,169,000 23,390,000 18,446,000 22,820,000 20,180,000 89,469,000 $ 22,486,000 1,570,957,000 12,578,000 25,703,000 13,759,000 31,520,000 176,169,000 17,890,000 14,306,000 18,820,000 13,110,000 83,189,000 ............... $2,957,324,000 $2,000,487,000 T otal l On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield of 3.65 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 o f 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. RESULTS OF LAST OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED OCTOBER 10, 1963) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing January 9, 1964 Price High ......... ... Low ......... ... Average ....... 182-Day Treasury Bills Maturing April 9, 1964 Approx. equiv. annual rate 99.129a 99.124 99.126 Price 3.446% 3.465% 3.459%* 98.204 98.190 98.196 Approx. equiz annual rate 3.553% 3.580% 3.569%1 a Excepting tw o tenders totaling $350,000. 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide yields o f 3.55 percent for the 91-day bills, and 3.69 percent for the 182-day bills. 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 o f days remaining in an interest payment period to the actual number o f days in the period, with semiannual com pounding if m ore than one coupon period is involved. (50 percent of the amount of 91-day bills bid for atthe low price was accepted.) (33 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing January 9, 1964 District Boston ......... New York ...... Philadelphia ...... Cleveland ........ Richmond ....... Atlanta ......... Chicago ......... St. Louis ........ Minneapolis ...... Kansas City ...... Dallas .......... San Francisco ..... Total ..... Applied for $ 57,760,000 1,549,198,000 33,415,000 30,868,000 15,280,000 29,827,000 314,665,000 42,567,000 24,313,000 31,376,000 29,926,000 115,505,000 $2,274,700,000 182-Day Treasury Bills Maturing April 9, 1964 Accepted Applied for $ 36,535,000 753,043,000 17,858,000 30,618,000 12,910,000 25,967,000 250,261,000 35,227,000 16,313,000 25,426,000 23,426,000 73,810,000 $1,301,394,000b $ 20,555,000 941,789,000 10,144,000 17,685,000 3,290,000 19,518,000 136,780,000 13,186,000 6,976,000 18,935,000 11,822,000 59,558,000 $1,260,238,000 b Includes $263,947,000 noncom petitive tenders accepted at the average price of 99.126. c Includes $71,784,000 noncom petitive tenders accepted at the average price of 98.196. Accepted $ 5,555,000 566,039,000 8,144,000 7,685,000 3,257,000 19,518,000 92,440,000 11,516,000 5,007,000 18,935,000 8,152,000 54,048,000 $800,296,000^
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