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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 5 7 2 6 1 L November 18, 1965 J Results of Treasury’s Offer of Additional $2.5 Billion in June Tax Bills T o 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 at 6:30 p.m., yesterday: The Treasury Department announced today that the tenders for an additional $2,500,000,000, or thereabouts, of the Tax Anticipation Series Treasury bills dated Octo ber 11, 1965, and to mature June 22, 1966, were opened at the Federal Reserve Banks on November 17. The additional amount of bills, which were offered on November 12, will be issued November 24 (210 days to maturity date). The details of this issue are as follows: Total applied for Total accepted . . $5,152,146,000 $2,500,906,000 (Includes $459,951,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting 12 tenders totaling $12,105,000) : High ........................ 97.638 L o w .......................... 97.616 ................. 97.623 Average Equivalent rate of discount approx. 4.049% per annum Equivalent rate of discount approx. 4.087% per annum Equivalent rate of discount approx. 4.075% per annum1 (2 percent of the amount bid for at the low price was accepted.) F ederal R eserve D istrict Total applied f o r Total accepted Boston .......................................................... $ 182,060,000 New York ................................................... 1,981,180,000 Philadelphia ............................................... 156,165,000 Cleveland ................................................... 377,930,000 Richmond ................................................... 95,650,000 Atlanta ........................................................ 197,800,000 Chicago ........................................................ 808,066,000 St. L o u is ..................................................... 164,980,000 Minneapolis ........................................ . 136,310,000 Kansas City ............................................... 98,640,000 Dallas .......................................................... 173,180,000 San Francisco ........................................... 780,185,000 T o t a l ...................................................... $ $5,152,146,000 88,360,000 441,860,000 88,205,000 195,290,000 44,550,000 135,600,000 645,486,000 82,480,000 73,810,000 76,640,000 123,320,000 505,305,000 $2,500,906,000 l On a coupon issue of the same length and for the same amount invested, the return on these bills would provide a yield of 4.22 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.
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