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F E D E R A L R E S E R V E BA N K O F NEW YO R K Fiscal Agent of the United States r Circular No. 5 8 1 0 1 May 11, 1966 J I OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 o f 91-Day Bills, Additional Amount, Series Dated February 17, 1966, Due August 18, 1966 (To Be Issued May 19, 1966) $1,000,000,000 of 182-Day Bills, Dated May 19, 1966, Due November 17, 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 Daylight Saving tim e: The tenders am ount change am ount T reasu ry D epartm ent, by this public notice, invites for tw o series of T reasu ry bills to the aggregate of $2,300,000,000, or thereabouts, for cash and in e x for T reasu ry bills m aturing M a y 19, 1966, in the of $2,301,401,000, as fo llo w s: 91-d a y bills (to m aturity date) to be issued M a y 19, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated February 17, 1966, and to m ature A u g u st 18, 1966, originally issued in the am ount of $1,000,846,000, the additional and original bills to be freely interchange able. 182-day bills, for $1,000,000,000, or thereabouts, to be dated M a y 19, 1966, and to mature N o vem ber 17, 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 w ithout 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 valu e). T enders will be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern D ayligh t Saving tim e, M on d ay , M a y 16, 1966. Tenders will not be received at the T reasu ry D epartm en t, W a sh in g to n . Each tender m ust be for an even m ultiple of $1,000, and in the case of com petitive 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 m ade on the printed form s and forw arded 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 cu stom 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 submit tenders except for their ow n account. T enders will be received w ithout deposit from in corporated banks and trust com panies 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 reasu ry 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 in g which public announcem ent will be m ade by the T reasu ry D ep artm ent of the am ount and price range of accepted bids. T h o se sub m itting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the T reasu ry exp ressly 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three d ecim als) of accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be m ade or com pleted at the Federal R eserve B ank on M a y 19, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasu ry bills m aturing M a y 19, 1966. Cash and exchange tenders will receive equal treatm ent. Cash adjustm 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 re asu ry bills, w hether interest or gain from the sale or other disposition of 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 of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt fro m all ta xa 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 reasu ry bills are originally sold by the U nited States is considered to be inter est. U nder Sections 4 5 4 (b ) and 1 22 1 (5 ) of the Internal Revenue Code of 1954, the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. A c c o r d ingly, the ow ner of T reasu ry bills (other than life insurance com 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 made as ordinary gain or loss. T reasury D epartm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasu ry bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, M ay 16, 1966, at the Securities Department o f 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 “ Ten der for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r 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 May 12, 1966, representing an additional amount of bills dated February 10, 1966, maturing August 11, 1966; and 182-day bills dated May 12, 1966, maturing November 10, 1966) are shown on the reverse side of this circular. A lfred H ayes , President. ( over ) RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED M AY 12, 1966) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing August 11,1966 H igh .............................. Low .............................. A vera ge ....................... 182-Day Treasury Bills Maturing N ovem ber 10,1966 P rice A p p ro x . equiv. annual! rate Price A p p ro x . equiv. annual rate 98.832 4.621% 97.579a 4.789% 98.826 4.644% 97.561 4.824% 98.830 4 .63 0% 1 97.564 4 .81 8% 1 a Excepting one tender of $280,000. 1 These rates are on a bank discount basis. 5.01 percent for the 182-day bills. The equivalent coupon issue yields are 4.75 percent for the 91-day bills, ai (81 percent o f the am ount o f 91-day bills bid for at the lo w price was accepted.) (67 percent o f the am ount of 182-day bills bid for at the low price was accepted.) Total Tenders A p p lied for and A ccepted (B y Federal Reserve Districts) 182-Day Treasury Bills Maturing N ovem ber 10,1966 91-Day Treasury Bills Maturing August 11,1966 Applied fo r District B oston .................................... $ 22,236,000 Applied fo r Accepted $ 12,092,000 $ 28,256,000 Accepted $ 3,156,000 .............................. 1,730,999,000 914,542,000 1,688,106,000 574,308,000 .......................... 33,439,000 15,054,000 14,415,000 6,096,000 Cleveland ................................ 30,311,000 22,017,000 45,481,000 25,542,000 R ich m on d .............................. 15,530,000 13,030,000 5,218,000 5,018,000 .................................... 45,734,000 21,649,000 38,084,000 11,295,000 279,903,000 108,583,000 400,913,000 199,250,000 55,501,000 27,199,000 33,444,000 13,659,000 ............................ 18,242,000 10,017,000 9,836,000 4,611,000 Kansas C i t y ............................ 26,448,000 22,198,000 16,762,000 12,383,000 Dallas ...................................... 27,706,000 16,206,000 16,255,000 10,755,000 San F ran cisco ....................... 251,591,000 117,800,000 271,506,000 136,281,000 N ew Y o rk Philadelphia A tlanta C h icago ..................................... St. L ou is ................................ M inneapolis T otal ....................................... $2,537,640,000 $ 1,300,387,000b $2,568,276,000 b Includes $250,190,000 noncompetitive tenders accepted at the average price of 98.830. c Includes $129,954,000 noncompetitive tenders accepted at the average price of 97.564. $1,002,354,000c
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