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FE D E R A L R ESER V E BANK O F NEW YO RK Fiscal Agent of the United States r Circular No. 5 8 7 6 ~[ l» September 28, 1966 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated July 7, 1966, Due January 5, 1967 (To Be Issued October 6, 1966) $1,000,000,000 of 182-Day Bills, Dated October 6, 1966, Due April 6, 1967 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 ex for T reasury bills m aturing O ctob er 6, 1966, in the of $2,304,083,000, as fo llo w s: 91-day bills (to m aturity date) to be issued O ctob er 6, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated July 7, 1966, and to mature January 5, 1967, originally issued in the am ount of $1,001,231,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated O ctober 6, 1966, and to mature A pril 6, 1967. 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 B anks and Branches up to the closing hour, one-thirty p.m ., Eastern D a y lig h t Saving tim e, M on d ay , O ctob er 3, 1966. T enders will not be received at the T reasury D epartm ent, W ash in g ton . E ach tender m ust be for an even multiple o f $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 decim als, 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 which 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 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 without deposit from incorporated 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 Banks and Branches, follow ing which public announcem ent w ill be made 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 will be advised of the acceptance or rejection 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) of accepted competitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on O ctober 6, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing O ctober 6, 1966. Cash and exchange tenders will receive equal treatment. Cash ad just m ents will be m ade for differences betw een the par value o f 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 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 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 n ow 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 interest. U nd er Sections 4 5 4 (b ) and 122 1 (5 ) of 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner o f 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 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 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, October 3, 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 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 (9 1 -day bills to be issued September 29, 1966, representing an additional amount of bills dated June 30, 1966, maturing December 29, 1966; and 182-day bills dated September 29, 1966, maturing March 30, 1967) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED SEPTEMBER 29, 1966) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing Decem ber 29,1966 182-Day Treasury Bills Maturing March 30,1967 Price A p p rox. equiv. annual rate Price Ap prox. equiv. annual rate H i g h .............................. ................. 98.615 5.479% 97.078 5.780% ................. 98.605 5.519% 97.057 5.821% 98.609 5.503% ! 97.066 5.804% ! ................. 1 T h ese rates are on a bank discount basis. T h e equivalent coupon issue yields are 5.66 percent for the 91-day bills, and 6.06 percent for the 182-day bills. (21 percent of the amount of 91-day bills bid for at the low price was accepted.) (63 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 D ecem ber 29,1966 Applied for District B o s t o n ............................ ........... New Y ork ................... ........... $ 37,965,000 2,037,717,000 182-Day Treasury Bills Maturing March 30,1967 Applied for Accepted $ 9,228,000 930,888,000 $ 25,263,000 Accepted $ 7,487,000 1,514,034,000 668,284,000 Philadelphia ................. ........... 31,679,000 13,601,000 17,820,000 7,438,000 ...................... ........... 36,638,000 24,286,000 40,542,000 26,580,000 ........... 13,764,000 12,974,000 16,154,000 8,344,000 Cleveland .......................... ........... 38,898,000 18,110,000 35,653,000 13,008,000 C h ic a g o .......................... ........... 357,865,000 66,227,000 345,820,000 163,194,000 39,266,000 Atlanta ........... 66,316,000 53,908,000 57,866,000 Minneapolis ................. ........... 18,377,000 8,877,000 16,563,000 7,613,000 Kansas C i t y ................. ........... 29,150,000 22,917,000 21,372,000 18,815,000 Dallas ............................ ........... San Francisco ............. Total ............. ........... 27,179,000 11,329,000 14,477,000 9,127,000 293,948,000 130,195,000 245,011,000 30,965,000 $2,989,496,000 $1,302,540,000* $2,350,575,000 a Includes $258,184,000 noncompetitive tenders accepted at the average price of 98.609. b Includes $206,110,000 noncompetitive tenders accepted at the average price of 97.066. $1,000,121,000b
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