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FED ER A L RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 6 1 8 3 L June 26, 1968 OFFERING OF TW O SERIES OF TREASURY BILLS $1,600,000,000 of 90-Day Bills, Additional Amount, Series Dated April 4, 1968, Due October 3, 1968 (To Be Issued July 5, 1968) $1,100,000,000 of 181-Day Bills, Dated July 5, 1968, Due January 2, 1969 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: T h e T re a s u ry D epa rtm en t, b y this p u b lic n otice, invites ten ders fo r tw o series o f T re a s u ry b ills to the a g g reg a te a m ou n t o f $2,700,000,000, o r th ereabouts, fo r cash and in ex ch a n g e fo r T re a su ry bills m a tu rin g J u ly 5, 1968, in the a m ou n t o f $2,601,480,000, as fo llo w s : 90-day bills (to m aturity da te) to be issued July 5, 1968, in the a m ou n t o f $1,600,000,000, or th ereabouts, rep re sen tin g an addition al a m ou n t o f bills dated A p ril 4, 1968, and to m ature O c to b e r 3, 1968, orig in a lly issued in the a m ou n t o f $1,000,448,000, the addition al and origin a l bills to be freely in terch angeable. 181-day bills, fo r $1,100,000,000, or th ereabouts, to be dated J u ly 5, 1968, and to m ature January 2, 1969. T h e bills o f b o th series w ill be issued on a discou n t basis under co m p etitive and n on com p etitiv e b id d in g as h ereinafter p rovided , and at m aturity their fa ce a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer fo rm on ly, and in d en om in a tion s o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill b e receiv ed at F ed eral R eserv e B anks and B ra n ch es up to the c lo s in g hour, on e-th irty p.m ., E astern D a y lig h t S a v in g tim e, M on d a y , Ju ly 1, 1968. T en d ers w ill n ot be receiv ed at the T rea su ry D epartm en t, W a s h in g to n . E ach tender m ust be fo r an even m u ltiple o f $1,000, and in the case o f co m p etitive ten ders the p rice offered m u st be exp ressed o n the basis o f 100, w ith n ot m o re than three decim als, e.g., 99.925. F ra ction s m a y n ot be used. It is u rged that tenders be m ade on the printed fo rm s and forw a rd ed in the special en velop es w h ich w ill be supplied b y F ederal R es e rv e B anks o r B ra n ch es on a pp lication th erefor. B a n k in g in stitu tions g en era lly m a y subm it ten ders for a cco u n t o f cu stom ers, p rovid ed the nam es o f the cu stom ers are set forth in such tenders. O th ers than b a n k in g institutions w ill n o t be perm itted to subm it tenders ex cep t for their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t d ep osit fro m in corp ora ted banks and trust com p a n ies and fro m resp on sib le and re cog n ized dealers in in vestm ent securities. T en d ers fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 p ercen t o f the face a m ou n t o f T re a su ry bills applied for, unless the ten ders are a ccom p a n ied b y an exp ress gu aranty o f pa ym en t b y an in corp ora ted bank or trust com p a n y . Im m ed ia tely after the clo s in g hour, tenders w ill be open ed at the F ederal R e se rve B anks and B ran ches, fo llo w in g w h ich p u b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D ep a rtm en t o f the a m ou n t and price range o f a ccep ted bids. T h o s e su b m ittin g tenders w ill be a dvised o f th e a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T re a s u ry e x p ressly reserves the righ t to a ccep t or re je ct any o r all ten ders, in w h o le o r in part, and his a ction in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e ten ders f o r each issue fo r $200,000 o r less w ith ou t stated p rice fro m a n y on e b id d er w ill b e a ccep ted in full at th e a vera ge p rice (in th ree d ecim a ls) o f a ccep ted com p etitive bids fo r the resp ectiv e issues. S ettlem ent fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the F ederal R eserv e B ank on J u ly 5, 1968, in cash o r oth er im m ediately available fu n d s o r in a like fa ce am ou n t o f T rea su ry bills m a tu rin g J u ly 5, 1968. Cash and ex ch a n g e tenders w ill receiv e equal treatm ent. Cash a d ju s t m en ts w ill be m ade fo r d ifferen ces b etw een the par valu e o f m atu rin g bills a ccep ted in ex ch a n ge and the issue p rice o f the n ew bills. T h e in com e derived fro m T re a s u ry bills, w h eth er interest or gain fro m the sale or oth er disp osition o f the bills, d o e s n ot have any exem ption , as such, and loss fro m the sale o r o th er disp osition o f T rea su ry bills d oes n ot have a n y special treat m ent, as such, under the In tern al R even u e C od e o f 1954. T h e bills are su b ject to estate, inheritance, g ift or oth er excise taxes, w h eth er Federal o r State, but are ex em p t fro m all ta x a tion n o w o r h ereafter im posed on the principal o r interest th ereof b y any State, o r a n y o f the p ossession s o f the U n ited States, or b y any loca l ta x in g authority. F o r p u rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T re a s u ry bills are orig in a lly sold b y the U n ited States is con sid ered to be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C od e o f 1954, the a m ou n t o f d iscou n t at w h ich b ills issued hereunder are sold is n ot con sid ered to a ccru e until such bills are sold, redeem ed o r oth erw ise disp osed o f, and such bills are ex clu d ed from con sidera tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (oth er than life insurance c o m pan ies) issued hereunder need in clude in his in com e ta x return on ly the differen ce betw een the price paid fo r such bills, w hether on origin a l issue o r on subsequen t pu rch ase, and the am ou nt a ctu ally received either u pon sale o r red em p tion at m aturity du rin g the taxable year fo r w h ich the return is m ade, as ord in a ry gain o r loss. T rea su ry D epa rtm en t C ircular N o . 418 (cu rren t re v is io n ) and this n otice p rescrib e the term s o f the T re a s u ry bills and g ov ern the con d ition s o f their issue. C opies o f the circu la r m ay be obtain ed fro m any F ed eral R eserv e B ank or B ran ch. This Bank will receive tenders for both series up to 1:30 p.m., Eastern Daylight Saving time, Monday, July 1, 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 the enclosed 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 Tax 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 27, 1968, representing- an additional amount of bills dated March 28, 1968, maturing September 26, 1968; and 182-day bills dated June 27 1968 maturing December 26, 1968) are shown on the reverse side of this circular. A lfred H a y e s , President. Please note that the current offering is for 90-d a y and 1 8 1 -d a y Treasury hills. (o v e r ) RESULTS OF LAST W EEK L Y OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JUNE 27, 1968) Range of Accepted Competitive Bids 91-Day Treasury Bills 182-Day Treasury Bills Maturing September 26,1 96 8 Maturing December 26, 1968 Price Approx. equiv. annual rate High ................. 98.690 5.182% 97.250* 5.440% L o w .................. 98.649 5.345% 97.205 5.529% 97.227 S.485%1 Average ............... 98.676 a E xcepting one tender o f $725,000. 1 These rates are on a bank discount basis. 5.72 percent for the 182-day bills. Price S.238%1 Approx. equiv. annual rate The equivalent coupon issue yields are 5.38 percent for the 91-day bills, and (51 percent of the amount of 91-day bills bid for at the low price was accepted.) (27 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 182-Day Treasury Bills Maturing September 26, 1968 Maturing December 26, 1968 Accepted Applied, for District Boston ........... ..... $ 21,279,000 $ 11,279,000 Applied for $ 5,952,000 Accepted $ 5,952,000 N e w Y o r k ........ ..... 1,604,484,000 1,092,234,000 1,318,198,000 770,838,000 Philadelphia ....... ..... 24,880,000 24,880,000 13,923,000 10,923,000 Cleveland......... ..... 33,228,000 33,228,000 31,956,000 23,956,000 Richmond ........ ..... 15,702,000 15,702,000 7,442,000 7,442,000 Atlanta........... ..... 45,282,000 45,282,000 33,477,000 22,477,000 Chicago .......... ..... 377,093,000 162,093,000 359,383,000 141,383,000 St. Louis ......... ..... 44,352,000 43,352,000 25,881,000 19,381,000 Minneapolis........ .... 24,235,000 24,235,000 19,914,000 19,914,000 Kansas City............. 36,997,000 36,997,000 22,961,000 22,961,000 Dallas............ ..... 22,212,000 15,212,000 17,643,000 8,913,000 San Francisco...... .... 125,590,000 95,590,000 106,464,000 46,164,000 ................. ..... $2,375,334,000 T o ta l $1,600,084,000b b Includes $280,610,000 noncompetitive tenders accepted at the average price of 98.676. c Includes $152,982,000 noncompetitive tenders accepted at the average price of 97.227. $1,963,194,000 $1,100,304,000®
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