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F E D E R A L R E S E R V E B A N K O F NEW Y O R K Fiscal Agent of the United States ° L June 12, 1968 J O F F E R IN G OF T W O SERIES OF T R E A S U R Y BILLS $1,600,000,000 of 91-D ay Bills, Additional Amount, Series Dated March 21,1968, Due Sept. 19,1968 (To Be Issued June 20, 1968) $1,100,000,000 of 182-Day Bills, Dated June 20, 1968, Due December 19, 1968 To All 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 Daylight Saving time: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $2,700,000,000, or thereabouts, for cash and in exchange for Treas ury bills maturing June 20, 1968, in the amount of $2,606,310,000, as follows: 91-day bills (to maturity date) to be issued June 20, 1968, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated March 21, 1968, and to mature September 19, 1968, originally issued in the amount of $1,000,051,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated June 20, 1968, and to mature December 19, 1968. The bills o f both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at maturity their face am ount will be payable w ithout interest. T h ey will be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p .m ., Eastern Daylight Saving time, M onday, June 17, 1968. 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 permitted 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 investment 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. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow ing which public announcem ent will be made by the Treasury D epartm ent o f the am ount and price range o f accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. T he Secretary o f 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 w ithout stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted com petitive bids for the respective issues. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on June 20, 1968, in cash or other im m ediately available funds or in a like face am ount o f Treasury bills maturing June 20, 1968. Cash and exchange tenders will receive equal treatment. Cash adjustm ents will be made for differences between the par value o f maturing bills accepted in exchange and the issue price o f the new bills. T he incom e derived from Treasury bills, whether 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 o r other disposition o f Treasury bills does not have any special treat ment, as such, under the Internal Revenue C ode o f 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, b u t are exem pt from all tax ation now or hereafter im posed on the principal or interest thereof b y any State, or any o f the possessions o f the United States, or b y any local taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold b y the United States is considered to be interest. Under Sections 454(b) and 1221 (5) o f the Internal R evenue Code o f 1954, the amount o f 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. A ccordingly, the owner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return on ly 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 which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular N o. 418 (current revision) and this notice prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f 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, June 17 1968, 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 sub mitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Acco unt 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 13, 1968 representing an additional amount of bills dated March 14, 1968, maturing September 12, 1968; and 182-day bills dated June 13 1968 maturing December 12, 1968) are shown on the reverse side of this circular. A lfred H ayes, President. (o v e r ) RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED JUNE 13, 1968) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing September 12, 1968 182-Day Treasury Bills Maturing December 12, 1968 Approx. equiv. annual rate Price Approx. equiv. annual rate Price High........ 98.569a 5.661% 97.088 5.760% Low......... 98.552 5.728% 97.067 5.802% Average...... 98.556 5.713%* 97.073 5.790%* 3 Excepting five tenders totaling §500,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 5.88 percent for the 91-day bills, and 6.05 percent for the 182-day bills. (69 percent of the amount of 91-day bills bid for at the low price was accepted.) (47 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) 182-Day Treasury Bills Maturing December 12, 1968 Accepted. Applied, for District Boston............ 91-Day Treasury Bills Maturing September 12, 1968 $ 90,826,000 $ 10,826,000 Applied for $ 3,143,000 Accepted $ 2,143,000 New York......... 1,774,081,000 1,095,211,000 1,326,213,000 819,563,000 Philadelphia........ 98,070,000 21,070,000 19,637,000 11,637,000 Cleveland.......... 48,321,000 40,321,000 31,865,000 18,815,000 Richmond.......... 15,689,000 14,689,000 6,038,000 4,038,000 Atlanta............ 43,336,000 36,336,000 29,821,000 18,994,000 Chicago........... 372,211,000 191,231,000 328,059,000 117,559,000 St. Louis........... 43,127,000 33,424,000 23,699,000 13,999,000 Minneapolis........ 21,642,000 19,565,000 16,064,000 14,064,000 Kansas City........ 43,832,000 37,832,000 20,183,000 13,183,000 Dallas............. 23,598,000 15,598,000 17,828,000 9,828,000 San Francisco....... 193,390,000 84,269,000 218,513,000 56,313,000 $2,041,063,000 $1,100,136,000' T o t a l ....................... $2,628,123,000 $1,600,372,000b b Includes $277,907,000 noncompetitive tenders acct;pted at the average price of 98.556. c Includes $ 13 0,718,000 noncompetitive tenders acce;pted at the average price of 97.073.