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FEDERAL RESERVE BANK OF NEW YORK Fiscal Agent of the United States r Circular No. 5 4 1 0 1 L October 31, 1963 J Results of Treasury’s One-Year 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 morning’s newspapers: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, of 362-day Treasury bills to be dated November 4, 1963, and to mature October 31, 1964, which were offered on October 23, were opened at the Federal Reserve Banks on October 30. The details of this issue are as follows: Total applied for $1,890,885,000 Total accepted .. $1,000,273,000 (includes $33,945,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting one tender of $300,000) : Equivalent rate of discount approx. High ....... 96.365 3.615% per annum Low ........ 96.340 Equivalent rate of discount approx. 3.640% per annum Average ...... 96.347 Equivalent rate of discount approx. 3.633% per annum1 (81 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Boston ................. $ 35,819,000 New York................ 1,406,963,000 Philadelphia .............. 11,667,000 Cleveland ................ 43,561,000 Richmond ................ 3,664,000 9,225,000 Atlanta ................. Chicago ................ 208,940,000 St. Louis................ 12,827,000 Minneapolis ........... .... 18,307,000 Kansas City .............. 9,845,000 Dallas .................. 22,500,000 San Francisco ............. 107,567,000 T o t a l .............. Total accepted $ 26,322,000 696,263,000 1,667,000 41,761,000 1,664,000 6,835,000 136,800,000 2,527,000 6,427,000 5,870,000 10,120,000 64,017,000 $1,890,885,000 $1,000,273,000 1 On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield of 3.80 percent. 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 of 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 o f days in the period, with semiannual compounding if more than one coupon period is involved. A lfred H ayes, President.