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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 3 1 May 18. 1966 J L OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated February 24,1966, Due August 25,1966 (T o Be Issued May 26, 1966) $1,000,000,000 of 183-Day Bills, Dated May 26, 1966, Due November 25, 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 en t, by this public notice, invites for tw o series of T reasu ry bills to the aggregate o f $2,300,000,000, or thereabouts, for cash and in ex for T reasu ry bills m aturing M a y 26, 1966, in the of $2,312,757,000, as fo llo w s: 91-d a y bills (to m aturity date) to be issued M ay 26, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated February 24, 1966, and to m ature A u g u s t 25, 1966, originally issued in the am ount of $1,000,854,OOO, the additional and original bills to be freely interchange able. 183-day bills, for $1,000,000,000, or thereabouts, to be dated M a y 26, 1966, and to m ature N o ve m b e r 25, 1966. T h e bills of both series w ill 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 v a lu e). T enders will be received at Federal R eserve B anks and Branches up to the closin g hour, one-thirty p.m ., Eastern D a yligh t Saving tim e, M on d ay , M a y 23, 1966. T en ders will not be received at the T reasu ry D ep artm en t, W a s h in g to n . Each tender m u st be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m u st be expressed on the basis of 100, with not m ore than three decimals, e.g., 99.925. F ractions m a y not be used. It is urged that tenders be m ade on the printed form s and forw arded in the special envelopes w hich will be supplied by Federal R eserve B anks 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 thers than banking institutions w ill not be perm itted to subm it tenders except for their ow n account. T enders will be received without deposit from in corporated 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 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 closin g 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 reasury D epartm 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 26, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M a y 26, 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 reasu 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 Revenue 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 from 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 taxin g 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 1221(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 rd ingly, the ow ner of T reasury 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 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 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 23, 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 o f the last weekly offering o f Treasury bills (9 1 -day bills to be issued May 19, 1966, representing an additional amount o f bills dated February 17, 1966, maturing August 18, 1966; and 182-day bills dated May 19, 1966, maturing November 17, 1966) are shown on the reverse side o f this circular. A lfred H ayes, President. http://fraser.stlouisfed.org/ Please note that the Treasury bills maturing November 25, 1966, will be 183-day bills. Federal Reserve Bank of St. Louis ( over) RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED M A Y 19, 1966) Range o f A ccepted Com petitive Bids 91-Day Treasury Bills Maturing August 18,1966 Price H igh ..................... L ow ..................... A vera ge ............... 182-Day Treasury Bills Maturing N ovem ber 17,1966 A p p ro x . equiv. annual rate Price A p p rox. equiv. annual rate 97.568a 4.811% 98.836 4.605% 98.827 4.640% 97.556 4.834% 98.831 4 .62 6% 1 97.562 4.823% ! a E x ce p tin g one tender of $800,000. 1 T h e se rates are on a bank discount basis. T h e equivalent coupon issue yields are 4.75 percent for the 91-day bills, and 5.01 percent for the 182-d ay bills. (75 percent o f the am ount o f 91-day bills bid for at the low price w as a ccepted.) (42 percent of the am ount o f 182-day bills bid for at the low price was accepted.) T otal Tenders A p p lied for and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing A ugust 18,1966 Applied fo r District B oston .................................... $ 22,070,000 182-Day Treasury Bills Maturing N ovem ber 17,1966 Applied fo r Accepted $ 12,070,000 $ 5,415,000 Accepted $ 5,415,000 1,515,902,000 876,902,000 1,349,677,000 745,257,000 33,140,000 21,140,000 12,457,000 4,457,000 29,898,000 29,898,000 50,463,000 29,663,000 18,154,000 18,154,000 3,820,000 3,820,000 .................................... 40,399,000 36,524,000 32,901,000 19,953,000 C h icago .................................... 265,371,000 136,021,000 290,071,000 94,369,000 ....................... ........ 44,226,000 36,151,000 25,167,000 15,611,000 ................. ........ 18,604,000 16,904,000 11,008,000 10,007,000 K ansas C i t y ................. ........ 27,689,000 27,689,000 13,057,000 13,057,000 ............................ ........ 23,241,000 14,991,000 12,129,000 7,549,000 San F ran cisco ....................... 83,462,000 73,962,000 82,668,000 51,263,000 ......... $2,122,156,000 ..................... ........ N ew Y o rk Philadelphia C leveland ..................... ........ R ich m on d A tlanta St. L ou is ...................... M inneapolis D allas T otal ................. .......................... $ 1,300,406,000b $1,888,833,000 t> Includes $257,916,000 noncompetitive tenders accepted at the average price of 98.831. c Includes $136,311,000 noncompetitive tenders accepted at the average price of 97.562. $ 1,000,421,000"
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