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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 5 6 0 9 T January 27, 1965 J L 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 following statement was issued by the Treasury Department and released for publication in today’s morning newspapers: The Treasury Department announced last evening that the tenders for $1,000,000,000, or thereabouts, of 365-day Treasury bills to be dated January 31, 1965, and to mature January 31, 1966, which were offered on January 19, were opened at the Federal Reserve Banks on January 26. The details of this issue are as follows: Total applied for Total accepted .. $2,907,969,000 $1,000,478,000 (includes $52,612,000 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 $200,000) : High ...................... 96.007 L o w ........................ 95.998 Average ................ 96.000 Equivalent rate of discount approx. 3.938% per annum Equivalent rate of discount approx. 3.947% per annum Equivalent rate of discount approx. 3.945% per annum1 (92 percent of the amount bid for at the low price was accepted.) Federal Reserve District 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 applied for Total accepted $ 51,874,000 1,949,445,000 12,216,000 129,634,000 12,834,000 35,200,000 408,116,000 59,154,000 14,277,000 8,906,000 33,472,000 192,841,000 $ 1,874,000 659,742,000 1,416,000 52,454,000 2,085,000 4,663,000 177,510,000 9,029,000 3,777,000 3,856,000 2,672,000 81,400,000 $2,907,969,000 $1,000,478,000 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 4.12 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.