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F E D E R A L R E S E R V E BA N K O F N EW Y O R K Fiscal Agent of the United States r Circular No. 5581~1 L November 25, 1964 J Results of Treasury’s One-Year Bill Offering To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The follow ing statement was issued by the T reasury D epartm ent and released fo r publication in to d a y ’ s m orning new spapers: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, of 365-day Treasury hills to be dated November 30, 1964, and to mature November 30, 1965, which were offered on November 18, were opened at the Federal Reserve Banks on November 24. The details of this issue are as follows: Total applied for Total accepted.. $2,496,352,000 $1,000,262,000 (includes $52,043,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting two tenders totaling $300,000) : High ........................ 95.944 L o w .......................... 95.855 Average ................. 95.876 Equivalent rate of discount approx. 4.000% per annum Equivalent rate of discount approx. 4.088% per annum Equivalent rate of discount approx. 4.068% per annum1 (28 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Boston .......................................................... $ New Y o r k .................................................... Philadelphia............................................... Cleveland .................................................... Richmond ................................................... Atlanta ........................................................ Chicago ........................................................ St. L o u is ...................................................... Minneapolis ............................................... Kansas City ............................................... Dallas .......................................................... San Francisco ........................................... T o t a l ................................................. Total accepted 33,954,000 1,883,404,000 13,522,000 80,809,000 3,752,000 29,623,000 207,362,000 15,123,000 9,871,000 9,123,000 32,717,000 177,092,000 $ $2,496,352,000 21,754,000 694,239,000 3,522,000 28,309,000 2,752,000 15,623,000 93,037,000 7,823,000 4,271,000 5,123,000 5,717,000 118,092,000 $1,000,262,000 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 4.26 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 of days in the period, with semiannual compounding if more than one coupon period is involved. 1 9>J 4 A lfred H ayes, P resident. F I F T I E T H A N N I V E R S A R Y 19 6 4