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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 5 5 6 2 " 1 L October 21, 1964 J Results of Treasury’s Offer of Additional S i .5 Billion in March Tax Bills To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was issued by the Treasury Department and released for today’s morning newspapers: The Treasury Department announced last evening that the tenders fo r an additional $1,500,000,000, or thereabouts, o f the Tax Anticipation Series Treasury bills dated Septem ber 2, 1964, and to mature March 22, 1965, were opened at the Federal Reserve Banks on October 20. The additional amount o f bills, which were offered on October 14, will be issued October 26 (147 days to m aturity date). The details of this issue are as fo llo w s : Total applied fo r Total accepted . . $3,186,622,000 $1,501,585,000 (Includes $202,322,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive b id s : H igh ........................ 98.575 L o w .......................... 98.559 Average 98.564 ................. Equivalent rate of discount approx. 3.490% per annum Equivalent rate of discount approx. 3.529% per annum Equivalent rate of discount approx. 3.518% per annum1 (71 percent of the amount bid fo r at the low price was accepted.) Federal Reserve District Total applied for Total accepted Boston .......................................................... $ 161,615,000 New Y ork ................................................... 1,188,970,000 Philadelphia ............................................... 86,695,000 Cleveland ................................................... 263,730,000 Richmond ................................................... 61,000,000 Atlanta ........................................................ 130,375,000 Chicago ........................................................ 391,177,000 St. L o u i s ...................................................... 34,410,000 Minneapolis ............................................... 123,280,000 Kansas City ............................................... 63,705,000 Dallas .......................................................... 216,975,000 San Francisco ........................................... 464,690,000 T o t a l ..................................................... $ $3,186,622,000 69,815,000 425,510,000 19,095,000 85,630,000 44,755,000 44,640,000 202,432,000 24,604,000 91,100,000 37,305,000 144,025,000 312,674,000 $1,501,585,000 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 3.62 pereent. 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 of days in the period, with semiannual compounding if more than one coupon period is involved. 19 14 A lfred H ayes, President. FIFTIETH ANNIVERSARY 19 6 4
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