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FED ER AL R E SE R V E BANK O F N EW YORK Fiscal Agent of the United States r Circular N o. 5 7 1 5 T L O ctober 27, 1965 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 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 October 31, 1965, and to mature October 31, 1966, which were offered on October 20, were opened at the Federal Reserve Banks on October 26. The details of this issue are as follows: Total applied for Total accepted .. $2,304,508,000 $1,000,141,000 (includes $49,209,000 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 $700,000) : High ....................... 95.758 L o w ......................... 95.745 Average ................. 95.750 Equivalent rate of discount approx. 4.184% per annum Equivalent rate of discount approx. 4.197% per annum Equivalent rate of discount approx. 4.192% per annum1 (59 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Total accepted Boston ......................................................... New York .................................................. P h ila d e lp h ia .............................................. Cleveland .................................................. Richmond .................................................. Atlanta ....................................................... Chicago ....................................................... St. L o u i s ..................................................... Minneapolis .............................................. Kansas City .............................................. Dallas ......................................................... San Francisco .......................................... $ 48,839,000 1,656,361,000 12,818,000 51,830,000 17,902,000 23,784,000 314,420,000 17,463,000 11,924,000 10,899,000 22,046,000 116,222,000 $ 27,739,000 709,496,000 2,818,000 45,830,000 11,672,000 8,725,000 124,330,000 6,422,000 9,424,000 5,899,000 7,046,000 40,740,000 T o t a l ................................................ $2,304,508,000 $1,000,141,000 1 On a coupon issue o f the same length and for the same amount invested, the return on these bills would provide a yield of 4.39 percent. Interest rates on bills are quoted in terms o f 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 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 compounding if more than one coupon period is involved. A lfred H a y e s , President.
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