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FED ER A L R E SE R V E BANK O F N EW YORK Fiscal Agent of the United States r Circular No. 5 6 9 5 1 L August 25, 1965 J Results of Treasury’s One-Year Bill Offering To A ll In corporated Banks 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 August 31, 1965, and to mature August 31, 1966, which were offered on August 18, were opened at the Federal Reserve Banks on August 24. The details of this issue are as follows: Total applied for Total accepted . . $1,926,902,000 $1,000,152,000 (includes $34,059,000 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 ....................... 95.950 L o w ......................... 95.931 Average ................. 95.938 Equivalent rate of discount approx. 3.995% per annum Equivalent rate of discount approx. 4.013% per annum Equivalent rate of discount approx. 4.006% per annum1 (11 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 ila d elp h ia .............................................. Cleveland .................................................. Richmond ................................................... Atlanta ....................................................... Chicago ....................................................... St. L o u i s ..................................................... Minneapolis .............................................. Kansas C i t y .............................................. Dallas ......................................................... San Francisco .......................................... T o t a l ................................................ Total applied f o r 45,317,000 1,484,894,000 11,349,000 43,781,000 4,202,000 11,045,000 211,018,000 16,823,000 6,331,000 6,609,000 11,068,000 74,465,000 $1,926,902,000 Total accepted $ 35,317,000 801,314,000 3,349,000 23,001,000 3,202,000 4,545,000 78,018,000 4,823,000 3,441,000 6,609,000 2,068,000 34,465,000 $1,000,152,000 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 4.19 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 com puted 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 ayes, President.
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