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F E D ER A L R ES ER V E BANK O F NEW YO RK Fiscal Agent of the United States r Circular No. 5 7 9 7 ~l April 6, 1966 J L OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series dated January 13, 1966, Due July 14, 1966 (To Be Issued April 14, 1966) $1,000,000,000 of 182-Day Bills, Dated April 14, 1966, Due October 13, 1966 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m., Eastern Standard time: T h e T reasu ry D epartm ent, by this public notice, invites tenders for tw o series of T reasu ry bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing A pril 14, 1966, in the am ount of $2,300,509,000, as fo llo w s: 91-day bills (to m aturity date) to be issued A pril 14, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated Jan uary 13, 1966, and to mature July 14, 1966, originally issued in the am ount of $1,000,387,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated A p ril 14, 1966, and to mature O ctob er 13, 1966. T h e bills of both series will be issued on a discount basis under com petitive 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 denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). T enders will be received at Federal Reserve Banks and B ranches up to the closing hour, one-thirty p.m ., Eastern Standard time, M on d ay , A pril 11, 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, w ith not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed form s and forwarded in the special envelopes w hich will be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers, provided the nam es of the custom ers are set forth in such tenders. O thers than banking institutions will not be permitted to subm it tenders except for their ow n account. T enders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent o f 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. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve B anks and Branches, follow ing which public announcem ent w ill be m ade by the T reasury D ep art 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) of accepted com petitive bids for the respective issues. Settle m ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted at the Federal R eserve Bank on A pril 14, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing A p ril 14, 1966. Cash and exchange tenders will receive equal treatm ent. Cash adjust m ents will be m ade 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, w hether 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 Revenue Code o f 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether 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 o f the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at w hich T reasu ry bills are originally sold by the U nited States is considered to be interest. U nd er 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, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner of T reasury 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 o f the T reasu ry bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal R eserve B ank or Branch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Monday, A pril 11, 1966, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. Results of the last weekly offering of Treasury bills (91-day bills to be issued April 7, 1966, representing an additional amount of bills dated January 6, 1966, maturing July 7, 1966; and 182-day bills dated April 7, 1966, maturing October 6, 1966) are shown on the reverse side of this circular. A lfred H ayes , President. ( over) RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED APRIL 7, 1966) Range of Accepted Competitive Bids 91 -D ay Treasury Bills Maturing July 7,1966 Price H i g h .............................. ................. 182-Day Treasury Bills Maturing October 6,1966 A p prox. equiv. annual rate Price A p prox. equiv. annual rate 9 8.8 60 4.510% 97.616b .............................. ................. 98.852 4.542% 97.613 4.722% Average ........................ ................. 98.855 4.531% 1 97.614 4.719%* L ow a E xce p tin g one tender of $200,000. 4.716% b E xcep tin g one tender of $638,000. 1 T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 4.65 percent for the 91-d a y bills, and 4.90 percent for the 182-day bills. (26 percent of the amount of 91-day bills bid for at the low price was accepted.) (77 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 July 7,1966 Applied fo r District B o s t o n .................... ................... $ 40,605,000 182-Day Treasury Bills Maturing October 6,1966 Accepted $ 28,605,000 Applied fo r $ 5,369,000 Accepted $ 3,966,000 ........... ................... 1,463,577,000 827,937,000 1,745,668,000 Philadelphia .............................. 28,150,000 16,150,000 13,348,000 4,788,000 ............... ................... 29,133,000 29,133,000 38,567,000 17,142,000 Richmond ............... ................... 14,780,000 14,780,000 4,468,000 4,468,000 Atlanta ................... ................... 53,479,000 39,517,000 39,448,000 12,423,000 N ew Y ork Cleveland 759,004,000 C h ic a g o ................... ................... 209,600,000 164,726,000 244,982,000 60,988,000 St. L o u i s ................. ................... 62,750,000 46,528,000 35,015,000 12,415,000 Minneapolis ........... ................... 21,068,000 17,328,000 13,901,000 3,151,000 Kansas C i t y ........... ................. 24,447,000 22,447,000 16,200,000 11,055,000 ...................... ................. 25,338,000 17,598,000 14,714,000 9,414,000 75,727,000 268,529,000 102,205,000 Dallas San Francisco ----- ................. 89,821,000 Total ................. $2,062,748,000 $1,300,476,000c $2,440,209,000 c Includes $260,951,000 noncom petitive tenders accepted at the average price of 98.855. d Includes $129,302,000 noncom petitive tenders accepted at the average price of 97.614. $1,001,019,000d
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