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FED ER A L R E S E R V E BANK O F N EW YORK Fiscal Agent of the United States r Circular No. 5 6 L May 26, 1965 61 Results of Treasury’s One-Year Bill Offering To A ll Incorporated Banlcs and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: 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 May 31, 1965, and to mature May 31; 1966, which were offered on May 19, were opened at the Federal Reserve Banks on May 25. The details of this issue are as follows: Total applied for Total accepted .. $2,751,845,000 $1,000,737,000 (includes $31,227,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting 2 tenders totaling $10,000,000) : High ....................... 95.994 L o w ......................... 95.991 Average ................. 95.991 Equivalent rate of discount approx. 3.951% per annum Equivalent rate of discount approx. 3.954% per annum Equivalent rate of discount approx. 3.954% per annum1 (86 percent of the amount bid for at the low price was accepted.) Federal R eserve D istrict B o sto n ......................................................... $ New Y o r k .................................................. P h ilad elp h ia.............................................. Cleveland .................................................. Richmond ................................................... A t la n ta ....................................................... Chicago ....................................................... St. L o u i s .................................................... Minneapolis .............................................. Kansas C i t y .............................................. Dallas ......................................................... San Francisco .......................................... T otal ................................................ Total applied fo r Total accepted 60,914,000 2,198,600,000 16,516,000 26,500,000 1,463,000 12,250,000 322,305,000 9,644,000 8,900,000 2,942,000 813,000 90,998,000 $ $2,751,845,000 914,000 945,257,000 1,316,000 3,400,000 1,391,000 1,950,000 24,075,000 3,619,000 1,900,000 1,742,000 813,000 14,360,000 $1,000,737,000 1 On a coupon issue o f the same length and fo r the same amount invested, the return on these bills would provide a yield o f 4.13 percent. Interest rates on bills are quoted in terms o f bank discount, with the return related to the face amount o f the bills payable at maturity rather than the amount invested, and their length in actual number o f days related to a 360-day year. In contrast, yields on certificates, notes, and bonds are computed in terms o f interest on the amount invested, and relate the number o f days remaining in an interest payment period to the actual number o f days in the period, with semiannual com pounding i f more than one coupon period is involved. A lfred H a y e s , President. ~l J
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