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FE D E R A L R ESER V E BANK O F N EW Y O R K Fiscal Agent of the United States rC ircu lar No. 5 7 4 9 "1 1* December 24, 196S 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 at 6:30 p.m. yesterday: The Treasury Department announced today that the tenders for $1,000,000,000, or thereabouts, of 365-day Treasury bills to be dated December 31, 1965, and to mature December 31, 1966, which were offered on December 16, were opened at the Federal Reserve Banks on December 23. The details of this issue are as follows: Total applied for $2,720,269,000 Total accepted .. $1,000,834,000 (includes $52,299,000 entered on a non competitive basis and accepted in full at the average price shown below) Range of accepted competitive bids (excepting two tenders totaling $900,000) : High ........ 95.215 Equivalent rate of discount approx. 4.719% per annum Equivalent rate of discount approx. Low ......... 95.197 4.737% per annum Average ...... 95.203 Equivalent rate of discount approx. 4.731% per annum1 (73 percent of the amount bid for at the low price was accepted.) Federal Reserve District Total applied for Total accepted Boston ...................... New Yor k.................... Philadelphia ................. Cleveland .................... Richmond ................... Atlanta ..................... Chicago ..................... St. Louis..................... Minneapolis ................. Kansas City .................. Dallas ...................... San Francisco ................. $ 59,071,000 1,878,509,000 17,904,000 68,843,000 3,183,000 52,343,000 420,172,000 31,498,000 6,855,000 2,744,000 16,950,000 162,197,000 $ T o t a l ..................... $2,720,269,000 $1,000,834,000 11,771,000 716,615,000 2,904,000 62,173,000 3,183,000 11,149,000 115,633,000 18,421,000 1,855,000 2,744,000 1,950,000 52,436,000 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 4.98 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.