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FE D ER A L R ESER V E BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 5 8 2 5 ~ l June 22, 1966 J 1 . OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated March 31,1966, Due September 29,1966 (To Be Issued June 30, 1966) $1,000,000,000 of 182-Day Bills, Dated June 30, 1966, Due December 29, 1966 To 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: 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 ex change for T reasu ry bills m aturing June 30, 1966, in the am ount of $3,301,943,000, as fo llo w s: 91-day bills (to m aturity date) to be issued June 30, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated M arch 31, 1966, and to mature Septem ber 29, 1966, originally issued in the am ount of $999,921,000, the additional and original bills to be freely interchange able. 182-day bills, for $1,000,000,000, or thereabouts, to be dated June 30, 1966, and to mature D ecem 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 w ill 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 valu e). Tenders 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 on d ay, June 27, 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 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 B anks or Branches on application therefor. Banking institutions generally m ay subm it 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. 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 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 Reserve B anks and Branches, follow ing which public announcem ent will be made 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 will be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury 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 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. S ettlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on June 30, 1966, in cash or other im m ediately available funds or in a like face am ount o f T reasury bills m aturing June 30, 1966. Cash and exchange tenders will receive equal treatm ent. Cash ad ju st m ents w ill 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, 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 of the U nited States, or b y 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 reasu ry 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 reasury D ep artm ent Circular N o . 418 (current revision) and this notice prescribe the term s o f 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. lh is Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Monday, June 27, 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 lender 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 T ax 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 June 23, 1966, representing an additional amount of bills dated March 24, 1966, maturing September 22, 1966; and 182-day bills dated June 23, 1966, maturing December 22, 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 JUNE 23, 1966) Range o f A ccepted Com petitive 91-Day Treasury Bills Maturing September 22, 1966 Bids 182-Day Treasury Bills Maturing Decem ber 22, 1966 Price .......... 98.880 4.431% 97.688a 4.573% ............ 98.865 4.490% 97.675 4.599% 98.870 H ig h ............................ A p prox. equiv. annual rate A p prox. equiv. Price 4.470%1 97.679 4.591%1 annual rate a E xcep tin g one tender of $3,400,000. 1 T h ese rates are on a bank discount basis. 4.77 percent for the 182-day bills. T h e equivalent coupon issue yields are 4.58 percent for the 91-d a v bills and y 1 s’ d u (60 percent of the amount of 91-day bills bid for at the low price was accepted.) (69 percent of the amount of 182-day bills bid for at the low price was accepted.) T otal Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts) 91-Day Treasury Bills Maturing September 22, 1966 Accepted Applied for District .... $ 25,965,000 182-Day Treasury Bills Maturing Decem ber 22, 1966 $ 15,475,000 Applied for $ 7,674,000 Accepted $ 7,674,000 1,551,069,000 1,290,357,000 649,457,000 31,450,000 19,450,000 19,883,000 11,783,000 30,843,000 30,262,000 72,139,000 71,216,000 12,695,000 12,695,000 5,488,000 4,688,000 40,027,000 31,329,000 39,536,000 22,198,000 259,288,000 135,448,000 301,679,000 138,479,000 45,198,000 37,026,000 29,171,000 17,378,000 23,968,000 23,368,000 13,834,000 11,334,000 32,789,000 32,639,000 19,307,000 19,107,000 24,095,000 15,095,000 15,049,000 10,049,000 94,401,000 . 902,169,000 45,501,000 100,767,000 36,702,000 $2,171,788,000 $ 1,300,457,000b $1,914,884,000 b Includes $256,061,000 noncompetitive tenders accepted at the average price of 98.870. c Includes $155,470,000 noncompetitive tenders accepted at the average price of 97.679. $1,000,065,000c
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