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F E D E R A L R E S E R V E BA N K O F NEW YO RK Fiscal Agent of the United States r Circular No. 5 5 9 1"1 L December 24, 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 for 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 bills to be dated December 31, 1964, and to mature December 31, 1965, which were offered on December 16, were opened at the Federal Reserve Banks on December 23. The details of this issue are as follows: Total applied for Total accepted . . $2,308,404,000 $1,000,540,000 (includes $43,478,000 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 $100,000) : High ........................ 95.987 L o w .......................... 95.965 Average ................. Equivalent rate of discount approx. 3.958% per annum Equivalent rate of discount approx. 3.980% per annum Equivalent rate of discount approx. 3.972% per annum1 95.972 (93 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 43,720,000 1,751,861,000 14,251,000 89,892,000 9,645,000 20,023,000 216,443,000 14,718,000 18,445,000 10,017,000 31,210,000 88,179,000 $ $2,308,404,000 32,150,000 650,426,000 2,251,000 50,066,000 8,645,000 14,383,000 154,878,000 9,543,000 4,268,000 8,961,000 19,140,000 45,829,000 $1,000,540,000 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 4.15 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. 19 14 A lfred H ayes, President. F I F T I E T H A N N I V E R S A R Y 19 6 4
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