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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
~
1
{Circular No. 5 9 6 4 J*
March 29, 1967
OFFERING OF TWO SERIES OF TREASURY BILLS
$1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated January 5, 1967, Due July 6, 1967
(To Be Issued April 6, 1967)
$1,000,000,000 of 182-Day Bills, Dated April 6, 1967, Due October 5, 1967
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Standard tim e:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate amount
of $2,300,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing April 6, 1967, in the amount of
$2,300,427,000, as follow s:
91-day bills (to maturity date) to be issued April 6, 1967,
in the amount of $1,300,000,000, or thereabouts, repre
senting an additional amount of bills dated January 5,
1967, and to mature July 6, 1967, originally issued in
the amount of $1,001,157,000, the additional and original
bills to be freely interchangeable.
182-day bills, for $1,000,000,000, or thereabouts, to be
dated April 6, 1967, and to mature October 5, 1967.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable with
out interest. They 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 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern Standard
time, Monday, April 3, 1967. Tenders will not be received at the
Treasury Department, Washington. Each tender must be for an
even multiple of $1,000, and in the case of competitive tenders the
price offered must be expressed on the basis of 100, with not more
than three decimals, e.g., 99.925. Fractions may not be used. It is
urged that tenders be made on the printed forms and forwarded
in the special envelopes which will be supplied by Federal Reserve
Banks or Branches on application therefor.
Banking institutions generally may submit tenders for account
of customers, provided the names of the customers are set forth in
such tenders. Others than banking institutions will not be per
mitted to submit tenders except for their own account. Tenders
will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in invest
ment securities. Tenders from others must be accompanied by
payment of 2 percent of the face amount of Treasury bills applied
for, unless the tenders are accompanied by an express guaranty of
payment by an incorporated bank or trust company.
Immediately after the closing hour, tenders will be opened at
the Federal Reserve Banks and Branches, following which public
announcement will be made by the Treasury Department of the
amount and price range of accepted bids. Those submitting tenders
will be advised of the acceptance or rejection thereof. The Secre
tary of the Treasury 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 decimals) of accepted competitive bids for the
respective issues. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal Reserve
Bank on April 6, 1967, in cash or other immediately available funds
or in a like face amount of Treasury bills maturing April 6, 1967.
Cash and exchange tenders will receive equal treatment. Cash
adjustments will be made for differences between the par value of
maturing bills accepted in exchange and the issue price of the new
bills.
The income derived from Treasury bills, whether interest or
gain from the sale or other disposition of the bills, does not have
any exemption, as such, and loss from the sale or other disposition
of Treasury bills does not have any special treatment, as such,
under the Internal Revenue Code of 1954. The bills are subject to
estate, inheritance, gift or other excise taxes, whether Federal or
State, but are exempt from all taxation 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.
For purposes of taxation the amount of discount at which Treasury
bills are originally sold by the United States is considered to be
interest. Under Sections 454(b) and 1221(5) of the Internal
Revenue Code of 1954, the amount of discount at which 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. Accordingly,
the owner of Treasury bills (other than life insurance companies)’
issued hereunder need include in his income tax return only the
difference between the price paid for such bills, whether on original
issue or on subsequent purchase, and the amount actually received
either upon sale or redemption at maturity during the taxable year
for which the return is made, as ordinary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular may
be obtained from any Federal Reserve Bank or Branch.
This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, A pril 3,
1967, 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 (91-day bills to be issued March 30, 1967, representing an
additional amount of bills dated December 29, 1966, maturing June 29, 1967; and 182-day bills dated March 30, 1967,
maturing September 28, 1967) are shown on the reverse side of this circular.
A lfred
H ayes,
President.
(over)
RESULTS OF LAST W E E K L Y OFFERING OF TREASURY BILLS
(TW O SERIES
TO BE ISSUED MARCH 30, 1967)
Range o f A ccepted Com petitive Bids
91-Day Treasury Bills
Maturing June 29,1967
182-D ay Treasury Bills
Maturing September 28,1967
Price
Approx. equiv.
annual rate
Price
Approx. equiv.
annual rate
.......................................
98.955
4.134%
97.957
4.041%
L o w .........................................
98.947
4.166%
97.930
4.095%
Average
98.951
4.150% x
97.941
4.073% !
H igh
.................................
1 These rates are on a bank discount basis.
4.23 percent for the 182-day bills.
The equivalent coupon issue yields are 4.26 percent for the 91-day bills, and
(55 percent of the amount of 91-day bills
bid for at the low price was accepted.)
(44 percent of the amount of 182-day bills
bid for at the low price was accepted.)
Total Tenders A p p lied fo r and A ccepted (B y Federal Reserve Districts)
91-Day Treasury Bills
Maturing June 29,1967
B o s t o n ..........................
$
20,188,000
Applied for
Accepted
Applied for
District
182-Day Treasury Bills
Maturing September 28,1967
$
10,188,000
$
11,088,000
Accepted
$
1,088,000
New Y o r k ...................
1,679,203,000
892,787,000
1,201,981,000
690,521,000
Philadelphia ...............
30,348,000
18,348,000
11,610,000
3,610,000
C levela n d ......................
28,866,000
28,866,000
15,398,000
15,398,000
Richmond ....................
13,980,000
13,980,000
3,051,000
3,051,000
Atlanta
........................
54,303,000
28,889,000
28,344,000
17,104,000
Chicago ........................
334,717,000
141,017,000
293,717,000
153,717,000
St. L ou is........................
50,409,000
39,374,000
13,792,000
9,092,000
Minneapolis
...............
19,546,000
14,356,000
9,784,000
9,284,000
Kansas C ity.................
35,505,000
29,498,000
9,592,000
9,592,000
Dallas
..........................
24,764,000
14,414,000
14,727,000
4,727,000
San Francisco.............
233,827,000
68,737,000
182,826,000
82,938,000
T
otal
.......... . . .
$2,525,656,000
$1,300,454,000"
$1,795,910,000
a Includes $273,667,000 noncompetitive tenders accepted at the average price of 98.951.
b Includes $94,905,000 noncompetitive tenders accepted at the average price of 97.941.
$ 1 ,0 0 0 , 1 2 2 ,0 0 0 b
@FedFRASER