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F E D E R A L R E S E R V E B A N K O F N EW Y O R K Fiscal Agent of the United States r Circular No. 5 8 0 0 T U April 20, 1966 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated January 27, 1966, Due July 28, 1966 (To Be Issued April 28, 1966) $1,000,000,000 of 182-Day Bills, Dated April 28, 1966, Due October 27, 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 reasury D epartm ent, by this public notice, invites tenders for tw o series of T reasury 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 p ril 28, 1966, in the am ount of $2,302,146,000, as fo llo w s: 91-day bills (to m aturity date) to be issued A p ril 28, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated Jan uary 27, 1966, and to mature July 28, 1966, originally issued in the am ount of $1,000,239,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated A pril 28, 1966, and to mature O ctober 27, 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). T enders will be received at Federal R eserve B anks and Branches up to the closing hour, one-thirty p.m ., Eastern D a yligh t Saving time, M onday, A pril 25, 1966. T enders 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 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 th ers 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 will be made 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 whole 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 ment for accepted tenders in accordance w ith the bids m ust be made or com pleted at the Federal Reserve Bank on A pril 28, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing A pril 28, 1966. Cash and exchange tenders will receive equal treatment. Cash adjust 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 Revenue 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 imposed on the principal or interest thereof by any State, or any of the possessions of the United 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 22 1 (5 ) of the Internal Revenue C ode 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 between 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 m ade, as ordinary gain or loss. T reasu ry D epartm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of 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 Daylight Saving time, Monday, April 25, 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 21, 1966, representing an additional amount of bills dated January 20, 1966, maturing July 21, 1966; and 182-day bills dated April 21, 1966, maturing October 20, 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 21, 1966) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing July 21,1966 Price 182-Day Treasury Bills Maturing October 20,1966 A p prox. equiv. annual rate Price A pprox. equiv. annual rate 98.825a 4.648% 97.599 4.749% ........................ ........................ 98.819 4.672% 97.594 4.759% Average ................. ......................... 98.821 4.664% 1 97.597 4.754% x H i g h ................................................. Low a E xcep tin g one tender of $300,000. 1 T h ese rates are on a bank discount basis. T he equivalent coupon issue yields are 4.79 percent for the 91-d a y bills, an< 4.94 percent for the 182-day bills. (31 percent of the amount of 182-day bills bid for at the low price was accepted.) (94 percent of the amount of 91-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 21,1966 Applied for District ................... $ 35,320,000 182-Day Treasury Bills Maturing October 20,1966 Accepted $ 25,320,000 Applied fo r $ 15,067,000 Accepted $ 4,967,000 ........... ................... 1,613,424,000 899,238,000 1,641,030,000 735,754,000 Philadelphia ......... ................... 31,494,000 14,484,000 23,038,000 6,388,000 ............. ................... 29,449,000 29,449,000 48,625,000 27,709,000 R ic h m o n d ............. .................... 23,841,000 23,301,000 8,897,000 5,690,000 Atlanta ................. ................... 37,994,000 26,554,000 44,374,000 12,731,000 C h ic a g o ................. ................... 205,539,000 120,713,000 183,374,000 65,224,000 St. L o u i s ........... ................... 56,708,000 46,798,000 32,642,000 23,539,000 Minneapolis ......... ................... 17,945,000 12,415,000 13,266,000 7,010,000 Kansas C i t y ......... ................... 26,187,000 22,178,000 16,487,000 11,748,000 ................... ................... 31,614,000 21,079,000 12,185,000 7,185,000 . . . ............... 89,016,000 58,745,000 202,169,000 93,879,000 Total ... ............... $2,198,531,000 New Y ork Cleveland Dallas San Francisco $ 1,300,274,000b $2,241,154,000 b Includes $260,195,000 noncom petitive tenders accepted at the average price of 98.821. c Includes $132,661,000 noncom petitive tenders accepted at the average price of 97.597. $1,001,824,000*