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F E D ER A L R ES ER V E BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 5 7 8 8 ~1 L March 23, 1966 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated June 30, 1965, Due June 30, 1966 (To Be Issued March 31, 1966) $1,000,000,000 of 182-Day Bills, Dated March 31, 1966, Due September 29, 1966 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Eastern'standard ^ iSS“ ed * ^ TreaSUry DePartment- rdeased T h e T reasury D epartm ent, by this public notice, invites tenders for tw o series o f T reasu ry bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasu ry bills maturing M arch 31, 1966, in the am ount of $3,200,714,000, as fo llo w s: 91-day bills (to m aturity date) to be issued M arch 31, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of the one-year bills dated June 30, 1965, and to mature June 30, 1966, originally issued in the am ount of $1,000,647,000 (an additional $1,001,132,000 was issued D ecem ber 30, 1 965), the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated M arch 31, 1966, and to mature Septem ber 29, 1966. T h e bills of both series will be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided, and at m aturity their face am ount will be payable without interest. T h e y will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M on d ay, M arch 28, 1966. T en ders will not be received at the T reasu ry D epartm ent, W a sh in g to n . Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders for account of custom ers, provided the nam es o f the custom ers are set forth in such tenders. O th ers than banking institutions will not be permitted to subm it tenders except for their ow n account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T en ders from others m ust be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. Publication today at 4 p.m., Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve B anks and Branches, follow in g w hich public announcem ent will be made by the T reasu ry D e p a rt m ent of the am ount and price range of accepted bids. T h o se subm itting tenders will be advised of the acceptance or rejec tion thereof. T h e Secretary of the T reasury expressly reserves the right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reservations, noncom petitive tenders for each issue for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decim als) o f accepted com petitive bids for the respective issues. Settle m ent for accepted tenders in accordance w ith the bids m ust be made or com pleted at the Federal Reserve Bank on M arch 31, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 31, 1966. Cash and exchange tenders will receive equal treatment. C ash ad just m ents will be made for differences betw een the par value of m aturing bills accepted in exchange and the issue price of the new bills. T h e incom e derived from T reasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treat m ent, as such, under the Internal R evenue Code o f 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxa tion now or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at w hich T reasury bills are originally sold by the U n ited States is considered to be interest. U nder Sections 4 5 4 (b ) and 1 2 2 1 (5 ) o f the Internal Revenue Code of 1954, the am ount of discount at w hich bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner o f T reasu ry bills (other than life insurance co m panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for w hich the return is made, as ordinary gain or loss. T reasury D ep artm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions o f their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. This Bank will receive tenders for both series nn tn 1-W nm 1966, at the Securities Department of its Head Office and at its RnfFni ST*m tin?e’ March 28, series are enclosed. Please use the appropriate forms t o ^ u L r it S S ™ f° rmS f° r ^ resPective> “ Tender for Treasury Bills.” Tenders may be submitted bv f e L ? 1 1 ? i” a n . enveIoPe marked be submitted by telephone. Payment for the Treasury bills cannot bp L w ° co^ ™ati ? n; ^ e y may not Loan Account. Settlement must be made in cash or other immediately aunilnhl • Treasury Tax and er immeaiately available funds or m maturing Treasury bills h maturing September 22, 1966) are shown on the reverse side of this circular. ’ A lfred H ayes , President. ( over ) RESULTS OF LAST W E E K L Y OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED MARCH 24, 1966) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing June 23,1966 H i g h .............................. ................. 182-Day Treasury Bills Maturing September 22,1966 Price A p prox. equiv. annual rate 98.848 4.557% 97.592 Price A p prox. equiv. annual rate 4.763% L ow .............................. ................. 98.839 4.593% 97.582 4.783% A v e r a g e ........................ ................. 98.843 4.576% 1 97.585 4.776%* 1 T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 4.69 percent for the 91-d a y bills, and 4.96 percent for the 182-day bills. (20 percent of the amount of 91-day bills bid for at the low price was accepted.) (94 percent of the amount of 182-day bills bid for at the low price was accepted.) Total Tenders Applied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing June 23,1966 Applied, fo r District B o s t o n ............... ........................ New Y ork . . . . ........................ $ 34,290,000 182-Day Treasury Bills Maturing September 22,1966 Accepted $ 24,140,000 Accepted Applied for $ 7,167,000 $ 7,167,000 1,486,674,000 758,574,000 1,255,258,000 ...................... 32,685,000 15,420,000 20,603,000 6,953,000 ........................ 33,934,000 33,584,000 50,905,000 45,887,000 R ic h m o n d ......... ........................ ........................ 14,330,000 14,330,000 10,299,000 10,299,000 46,881,000 37,781,000 35,082,000 22,425,000 ........................ 337,384,000 218,245,000 329,941,000 160,130,000 St. L o u i s ........... ........................ 51,973,000 45,973,000 40,586,000 37,584,000 Minneapolis . . . ........................ 22,532,000 19,732,000 12,137,000 9,637,000 13,487,000 13,457,000 Philadelphia . . . 575,338,000 Kansas City . . . ........................ ........................ 31,481,000 31,461,000 29,065,000 24,265,000 14,145,000 11,085,000 . ........................ 101,293,000 76,913,000 133,541,000 100,151,000 Total . ........................ $2,222,522,000 San Francisco $l,300,418,000a $1,923,151,000 a Includes $280,101,000 noncompetitive tenders accepted at the average price of 98.843. b Includes $138,098,000 noncompetitive tenders accepted at the average price of 97.585. $1,000,113,000b