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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 5 6 0 3 ~ 1 L January 13, 1965 J Results of Treasury’s Offer of Additional $ 1 % Billion in June 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 for an additional $1,750,000,000, or thereabouts, of Tax Anticipation Series Treasury bills dated November 24, 1964, and to mature June 22, 1965, were opened at the Federal Reserve Banks on January 12. The additional amount of bills, which were offered on January 6, will be issued January 18 (155 days to maturity date). The details of this issue are as follow s: Total applied for Total accepted . . $4,037,167,000 $1,750,567,000 (Includes $233,367,000 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 $5,700,000) : High ...................... 98.411 L o w ........................ 98.399 Average ................ 98.402 Equivalent rate of discount approx. 3.691% per annum Equivalent rate of discount approx. 3.718% per annum Equivalent rate of discount approx. 3.711% per annum1 (26 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Total accepted Boston ...................................................... $ 184,476,000 New Y o r k ................................................ 1,669,140,000 Philadelphia .......................................... 115,754,000 255,981,000 Cleveland ...................................... .......... Richmond .............................................. 62,040,000 Atlanta .................................................... 121,515,000 Chicago .................................................... 478,134,000 St. L o u i s .................................................. 65,580,000 Minneapolis ............................................ 104,705,000 Kansas City ............................................ 69,072,000 Dallas ...................................................... 300,895,000 San Francisco ........................................ 609,875,000 T o t a l ................................................................ $ 137,876,000 379,698,000 46,274,000 75,861,000 54,040,000 75,215,000 257,914,000 55,980,000 29,605,000 42,832,000 103,285,000 491,987,000 $4,037,167,000 $1,750,567,000 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 3.82 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. A lfred H ayes, President.