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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
("Circular N o. 6 2 2 2 " ]
October
L O
ctober 2, 1968
J
O F F E R IN G OF T W O SER IES OF T R E A S U R Y B ILLS
.,600,000,000 of 91-D ay Bills, Additional Amount, Series Dated July 11, 1968, Due Jan. 9, 1969
(To Be Issued October 10, 1968)
$1,100,000,000 of 182-Day Bills, Dated October 10, 1968, Due April 10, 1969
To All Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
F ollow in g is the tex t o f a notice issued b y the T re a su ry D e p a r tm e n t, released for pu b lication to d a y at 4 p .m .,
E astern D a y lig h t Savin g tim e :
T he Treasury Departm ent, b y this public notice, invites ten
ders for tw o series of Treasury bills to the aggregate amount of
$2,700,000,000, or thereabouts, for cash and in exchange for Treasury
bills maturing O ctober 10, 1968, in the am ount of $2,602,052,000,
as follows:
91-day bills (to maturity date) to be issued O ctober 10, 1968,
in the amount o f $1,600,000,000, or thereabouts, represent
ing an additional amount of bills dated July 11, 1968, and to
mature January 9, 1969, originally issued in the am ount o f
$1,102,029,000, the additional and original bills to be freely
interchangeable.
182-day bills, for $1,100,000,000, or thereabouts, to be dated
O ctober 10, 1968, and to mature April 10, 1969.
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. They 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
D aylight Saving tim e, M on da y, O ctober 7, 1968. Tenders will
not be received at the Treasury Departm ent, W ashington. Each
tender must be for an even multiple o f $1,000, and in the case o f
com petitive tenders the price offered must be expressed on the basis
o f 100, with not more than three decimals, e.g., 99.925. Fractions
m ay not be used. It is urged that tenders be made on the printed
forms and forwarded in the special envelopes which will be supplied
b y Federal Reserve Banks or Branches on application therefor.
Banking institutions generally may subm it tenders for
account o f customers, provided the names o f the customers are
set forth in such tenders. Others than banking institutions will
not be permitted to subm it tenders except for their ow n account.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investm ent securities. Tenders from others must be
accom panied by paym ent o f 2 percent o f the face amount of
Treasury bills applied for, unless the tenders are accom panied
by an express guaranty o f paym ent b y an incorporated bank or
trust com pany.
Im m ediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, following which
public announcem ent will be made by the Treasury Departm ent
o f the a m ou n t and price range o f a ccep ted b id s. T h ose su b
m itting tenders will be advised o f the acceptance or rejection
thereof. The 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 O ctober 10, 1968,
in cash or other im mediately available funds or in a like face am ount
o f Treasury bills maturing O ctober 10, 1968. Cash and exchange
tenders will receive equal treatment. Cash adjustments 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 or other
disposition o f Treasury bills does not have any special treat
ment, as such, under the Internal Revenue Code o f 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exem pt from all tax
ation now or hereafter imposed 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 by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) o f the Internal Revenue
C ode 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
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 redemption 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 may be obtained
from any Federal Reserve Bank or Branch.
T h is B a n k will receive tenders for b oth series up to 1 :30 p .m ., E astern D a y lig h t S a vin g tim e , M o n d a y , O cto b e r 7,
1 9 68, at the Securities D e p a r tm e n t o f its H ea d Office and at its B u ffalo B ranch. T e n d e r form s for the respective series
are enclosed. Please use the appropriate form s to su b m it tenders and return th em in th e enclosed en velope m arked
“ T en d er for T re a su ry B ills.” T en d ers m a y be su b m itted b y telegraph, su b ject to w ritten con firm a tio n; th ey m a y not
be su b m itted b y teleph one.
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.
R esu lts o f th e last w eek ly offering o f T rea su ry bills (9 1 -d a y bills to be issued O cto b er 3 ,1 9 6 8 , representing an
addition al a m o u n t o f bills dated J u ly 5, 1968, m atu rin g J an u a ry 2 , 1 9 6 9 ; and 1 8 2 -d a y bills dated O cto b e r 3 , 1 9 6 8 ,
m atu rin g A p ril 3 , 19 69 ) are show n on th e reverse side o f this circular.
A lfred
H ayes,
President.
(o v e r )
RESULTS OF LAST WEEKLY OFFERING OF TREASURY BILLS (TWO SERIES
TO BE ISSUED OCTOBER 3, 1968)
Range of Accepted Competitive Bids
9 1 -Day Treasury Bills
Maturing January 2 , 1969
182-Day Treasury Bills
Maturing April 3 , 1969
Approx. equiv.
annual rate
Price
Price
Approx. equiv.
annual rate
H i g h ................... ...............................
9 8 .6 9 8
5 .1 5 1 %
9 7 .3 4 2
5 .2 5 8 %
L o w ..................... ................................
9 8 .6 8 2
5 .2 1 4 %
9 7 .3 1 6
5 .3 0 9 %
A v e r a g e ..............................................
9 8 .6 9 0
5 .1 8 2 % *
9 7 .3 2 9
5 .2 8 3 % *
1 These rates are on a bank discount basis.
5.50 percent for the 182-day bills.
The equivalent coupon issue yields are 5.32 percent for the 91-day bills, an
(6 9 percent o f the a m ou n t o f 9 1 -d a y bills
(52 percent o f the a m ou n t o f 18 2 -d a y bills
bid for at the low price was a ccepted.)
bid for at the low price was accep ted .)
Total Tenders Applied for and Accepted (By Federal Reserve Districts)
182-Day Treasury Bills
Maturing April 3, 1969
91 -Day Treasury Bills
Maturing January 2 , 1969
B o s t o n ........................ .............
$
2 2 ,5 9 4 ,0 0 0
Applied for
Accepted
Applied for
District
$
2 2 ,4 9 4 ,0 0 0
$
1 4 ,7 1 2 ,0 0 0
Accepted
$
1 4 ,6 1 2 ,0 0 0
N e w Y o r k ................ .............
1 ,7 6 9 ,1 4 3 ,0 0 0
1 ,1 4 5 ,2 2 3 ,0 0 0
1 ,3 9 5 ,7 0 2 ,0 0 0
8 2 1 ,8 2 2 ,0 0 0
P h ila d e lp h ia ............ .............
2 9 ,3 3 7 ,0 0 0
22,787,000
1 6 ,7 2 1 ,0 0 0
1 1 ,7 2 1 ,0 0 0
C le v e la n d ..................
4 0 ,4 8 8 ,0 0 0
4 0 ,4 8 8 ,0 0 0
3 6 ,3 7 9 ,0 0 0
3 4 ,8 9 9 ,0 0 0
R i c h m o n d ................. .............
1 3 ,6 7 6 ,0 0 0
1 3 ,6 7 6 ,0 0 0
1 2 ,3 5 5 ,0 0 0
1 2 ,3 5 5 ,0 0 0
A t la n t a ....................... .............
4 2 ,3 2 2 ,0 0 0
3 4 ,7 4 5 ,0 0 0
3 0 ,4 7 3 ,0 0 0
1 8 ,7 2 3 ,0 0 0
..............
1 6 3 ,6 0 2 ,0 0 0
1 2 5 ,9 5 2 ,0 0 0
1 1 8 ,7 0 9 ,0 0 0
6 0 ,3 0 9 ,0 0 0
S t. L o u is .................... .............
4 8 ,2 6 2 ,0 0 0
4 0 ,1 0 7 ,0 0 0
2 6 ,4 1 4 ,0 0 0
1 9 ,3 7 4 ,0 0 0
M in n e a p o lis ............. .............
2 3 ,1 1 9 ,0 0 0
2 0 ,3 4 4 ,0 0 0
1 7 ,9 7 7 ,0 0 0
1 5 ,7 3 7 ,0 0 0
...........
2 4 ,7 2 4 ,0 0 0
2 4 ,7 2 4 ,0 0 0
1 5 ,9 1 8 ,0 0 0
1 5 ,4 3 8 ,0 0 0
.............
2 5 ,5 7 4 ,0 0 0
1 7 ,5 7 4 ,0 0 0
2 0 ,7 6 1 ,0 0 0
1 1 ,2 8 1 ,0 0 0
1 3 4 ,2 4 8 ,0 0 0
9 1 ,9 3 8 ,0 0 0
1 2 2 ,6 6 9 ,0 0 0
6 4 ,1 0 9 ,0 0 0
K a n sa s C i t y ............
San F ra n c is c o . . . .
T OTAL..........
____
$ 2 ,3 3 7 ,0 8 9 ,0 0 0
$ 1 ,6 0 0 ,0 5 2 ,0 0 0 a
$ 1 ,8 2 8 ,7 9 0 ,0 0 0
a Includes $286,410,000 n oncom petitive tenders accepted at the average price o f 98.690.
b Includes $132,296,000 noncom petitive tenders accepted at the average price o f 97.329.
$ 1 ,1 0 0 ,3 8 0 ,0 0 0 b
@FedFRASER