The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BAN K OF N E W YORK Fiscal Agent of the United States r Circular No. 6 2 6 8 1 L December 31, 1968 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated October 10, 1968, Due April 10, 1969 (To Be Issued January 9,1969) $1,100,000,000 of 182-Day Bills, Dated January 9,1969, Due July 10,1969 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 Standard time: T h e T re a su ry D epartm en t, b y this p u b lic n otice, invites tenders fo r tw o series o f T rea su ry bills t o the a g g reg a te am ou nt o f $2,700,000,000, o r th ereabouts, fo r cash and in exch a n ge fo r T re a su ry bills m a tu rin g January 9, 1969, in the a m ou n t o f $2,702,784,000, as fo llo w s : 91-day bills (to m aturity date) to be issued January 9, 1969, in the a m ou n t o f $1,600,000,000, or thereabouts, rep resen tin g an additional am ou nt o f bills dated O c t o ber 10, 1968, and to m ature A p ril 10, 1969, origin a lly issued in the a m ou n t o f $1,103,127,000, the additional and origin a l bills to be freely in terch angeable. 182-day bills, fo r $1,100,000,000, o r thereabouts, to be dated January 9, 1969, and to m ature Ju ly 10, 1969. T h e bills o f b o th series w ill be issued on a d iscou n t basis under co m p etitive and n on com p etitiv e b id d in g as h ereinafter provided , and at m aturity their face a m ou n t w ill be payable w ith ou t interest. T h e y w ill be issued in bearer form 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 be receiv ed at F ederal R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty p.m ., E astern Standard tim e, M on d a y, January 6, 1969. T en d ers w ill not be receiv ed at the T re a su ry D epartm en t, W a s h in g to n . E ach ten der m ust be fo r an even m u ltiple o f $1,000, and in the case o f co m p etitive tenders the price offered m u st be exp ressed on the basis o f 100, w ith n o t m ore than three decim als, e.g., 99.925. F ra ctio n s m a y n ot be used. It is u rged that tenders be m ade on the printed fo rm s and fo rw a rd e d in the special en velop es w hich w ill be supplied b y F ed eral R eserv e B anks o r B ra n ch es o n a pp lication th erefor. B a n k in g institutions gen era lly m a y subm it tenders fo r a cco u n t o f cu stom ers, p ro vid 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 ot be perm itted to subm it ten ders ex cep t fo r their ow n accou n t. T e n d e rs w ill be received w ith ou t dep osit fro m in corp ora ted banks and trust com pa n ies and fro m respon sib le and re cog n ized dealers in in vestm ent securities. T en d ers from 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 tenders 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 op en ed at the Federal R e se rv e B anks and B ran ches, fo llo w in g w h ich pu b lic a n n ou n cem en t w ill be m ade b y the T rea su ry D epa rtm en t o f the am ou nt and p rice ran ge o f a ccep ted bids. T h o s e sub m ittin g tenders w ill be advised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the righ t to a ccep t or re je ct any or all tenders, in w h o le or in part, and his action in any such resp ect shall be final. S u b je ct to these reservations, n on com p etitiv e ten ders fo r each issue fo r $200,000 o r less w ith ou t stated p rice fro m a n y on e bidd er w ill be a ccep ted in full at the a vera ge p rice (in three d ecim a ls) o f accep ted com p etitiv e bids fo r the resp ective issues. S ettlem en t fo r a ccep ted tenders in a ccord a n ce w ith the bids m u st be m ade or com p leted at the F ederal R e serv e B ank on January 9, 1969, in cash or oth er im m ediately available fun ds o r in a like fa ce a m ou n t o f T rea su ry bills m a tu rin g January 9, 1969. Cash and exch a n ge ten ders w ill receiv e equal treatm ent. Cash a d ju st m ents w ill be m ad e fo r d ifferen ces b etw een the par value o f m aturing bills a ccep ted in ex ch a n ge and the issue p rice o f the new bills. T h e in com e derived fro m T rea su ry bills, w h eth er interest or gain fro m the sale o r oth er d isp osition o f the bills, d oes n ot have any exem ption , as such, and loss fro m the sale or oth er d isp osition o f T rea su ry bills d oes n ot have any special treat m ent, as such, under the In tern a l R even u e C od e o f 1954. T h e bills are su b je ct to estate, inheritance, g ift or oth er excise taxes, w h eth er F ederal o r State, but are ex em p t fro m all taxa tion n o w or h ereafter im p osed on the principal o r interest th ereof b y any State, or any 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 pu rp oses o f taxation the a m ou n t o f d iscou n t at w h ich T rea su ry bills are o rigin a lly sold b y the U n ited States is con sid ered to be interest. U n der S ection s 4 5 4 (b ) and 1221(5) o f the In tern al R e ven 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, red eem ed o r oth erw ise d isp osed of, and such bills are exclu d ed fro m 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 (o th e r than life insurance c o m pan ies) issued hereunder need include in his in com e tax return o n ly the d ifferen ce b etw een the price paid fo r such bills, w hether on origin a l issue or on subsequen t pu rch ase, and the am ou nt a ctu ally receiv ed either upon 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 or loss. T rea su ry D epa rtm en t C ircular N o. 418 (cu rren t re v isio n ) and this n otice p rescrib e the term s o f the T rea su ry bills and g ov ern the con d ition s o f their issue. C op ies o f the circu lar m a y be ob ta in ed fro m any F ederal R eserv e B ank o r B ran ch . This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, January 6, 1969, 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 January 2, 1969, representing an additional amount of bills dated October 3, 1968, maturing April 3, 1969; and 182-day bills dated January 2, 1969, maturing July 3, 1969) are shown on the reverse side of this circular. A lfred H ayes, President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 2, 1969) Range of Accepted Competitive Bids 91 -Day Treasury Bills Maturing April 3,1969 Price A p prox. equiv. annual rate 182-Day Treasury Bills Maturing July 3,1969 Price A p prox. equiv. annual rate High ...................... .............. 98.451 6.128% 96.816a 6.298% Low ........................ .............. 98.407 6.302% 96.785 6.359% Average .................. .............. 98.433 6.199%! 96.799 6.332%! a E x ce p tin g on e tender o f $5,000. 1 T h ese rates are on a bank discou n t basis. T h e equivalent cou p on issue yield s are 6.39 p ercen t fo r the 91-day bills, and 6.63 p ercen t fo r the 182-day bills. (37 percent of the amount of 91-day bills bid for at the low price was accepted.) (29 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 April 3,1969 Applied for District B o s to n .................... ................ $ 24,898,000 182-Day Treasury Bills Maturing July 3,1969 Accepted $ 14,898,000 Applied for $ 4,986,000 Accepted $ 4,986,000 New York ............ ................ 1,581,663,000 1,093,663,000 1,453,917,000 807,767,000 Philadelphia .......... ................ 29,343,000 19,343,000 14,883,000 4,783,000 .............. ................ 29,294,000 29,294,000 34,804,000 34,804,000 Richmond .............. ................ 12,000,000 12,000,000 4,802,000 4,802,000 .................. ................ 30,308,000 30,308,000 14,480,000 13,730,000 Chicago .................. ................ 152,497,000 152,487,000 154,979,000 119,542,000 St. L o u is ................ ................ 38,753,000 36,753,000 29,933,000 29,233,000 .......... ................ 21,691,000 21,691,000 17,096,000 10,096,000 Kansas City .......... ................ 21,909,000 21,909,000 14,984,000 14,984,000 .................... ................ 29,217,000 23,217,000 23,885,000 16,885,000 ................ 159,841,000 144,841,000 107,936,000 38,636,000 ................ $2,131,414,000 $1,876,685,000 $1,100,248,000' Cleveland Atlanta Minneapolis Dallas San Francisco T otal ........... $1,600,404,000b b In clu d es $269,610,000 n on com p etitive tenders a ccep ted at the average price o f 98.433. c In clu d es $157,899,000 n on com p etitive tenders a ccep ted at the a vera ge price o f 96.799.
@FedFRASER