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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States r Circular No. 6 2 7 8 T L January 22, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated October 31, 1968, Due May 1, 1969 (To Be Issued January 30, 1969) $1,100,000,000 of 182-Day Bills, Additional Amount, Series Dated July 31, 1968, Due July 31, 1969 (To Be Issued January 30, 1969) 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 time: The Treasury Department, by this public notice, invites tenders 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 January 30, 1969, in the amount of $2,704,032,000, as follow s: 91-day bills (to maturity date) to be issued January 30, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated O cto ber 31, 1968, and to mature M ay 1, 1969, originally issued in the amount of $1,101,238,000, the additional and original bills to be freely interchangeable. 182-day bills (to maturity date) to be issued January 30, 1969, in the amount of $1,100,000,000, or thereabouts, representing an additional amount of bills dated July 31, 1968, and to mature July 31, 1969, originally issued in the amount o f $1,000,963,000 (an additional $501,533,000 was issued O ctober 31, 1968), the addi tional and original bills to be freely interchangeable. 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 without 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M onday, January 27, 1969. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $1,000, and in the case of com petitive tenders the price offered must be expressed on the basis o f 100, with not m ore than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed form s 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 o f 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 ow n 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 o f 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, follow in g which public announcement will be made by the Treasury Departm ent of the amount and price range of accepted bids. Those sub mitting tenders will be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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 decim als) of accepted competitive bids for the respective issues. Settlement for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on January 30, 1969, in cash or other immediately available funds or in a like face amount of Treasury bills maturing January 30, 1969. Cash and exchange tenders will receive equal treatment. Cash adjust ments will be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. The incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exemption, 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 taxa tion now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions o f 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) o f the Internal Revenue Code o f 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. A ccordingly, the owner o f "Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return OIi t. 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 gam or loss. Treasury Departm ent Circular N o. 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, January 27, 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 23, 1969, representing an additional amount of bills dated October 24, 1968, maturing April 24, 1969; and 182-day bills dated January 23, 1969, maturing July 24, 1969) are shown on the reverse side of this circular. A lfred H a y e s , President. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 23, 1969) Range o f Accepted Competitive Bids 91-Day Treasury Bills Maturing April 24,1969 182-Day Treasury Bills Maturing July 24,1969 A pprox. equiv. annual rate Price Approx. equiv. annual rate Price High ........................ .............. 98.471 6.049% 96.853 6.225% L o w .......................... .............. 98.456 6.108% 96.844 6.243% A v era ge.................... .............. 98.464 6.076%1 96.849 e.233% 1 1 1 hese rates are on a bank discount basis. The equivalent coupon issue yields are 6.26 percent for the 91-day bills and 6.52 percent for the 182-day bills. (20 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 A pplied for and Accepted (By Federal Reserve Districts) 91-Day Treasury Bills Maturing April 24,1969 Applied for District Boston ........................ ............ New Y o r k .................. ............ $ 25,506,000 182-Day Treasury Bills Maturing July 24,1969 Accepted $ 14,931,000 Applied for $ 8,869,000 Accepted $ 7,674,000 1,923,853,000 1,067,853,000 1,960,479,000 876,560,000 ............................ 34,697,000 19,512,000 20,040,000 7,440,000 Cleveland.................... ............. 39,079,000 35,852,000 57,217,000 25,745,000 Richmond .................... ............ 29,336,000 21,836,000 21,707,000 7,207,000 A tlan ta...................................... 44,508,000 30,948,000 56,475,000 35,647,000 Chicago ........................ ............ 216,343,000 145,043,000 213,737,000 49,935,000 St. L o u i s .................... ............ 58,619,000 48,919,000 41,279,000 30,014,000 Minneapolis.................. ............ 27,592,000 18,492,000 27,086,000 9,366,000 Kansas C it y .................. .......... 45,391,000 42,871,000 30,076,000 20,946,000 .......... 30,997,000 20,897,000 23,772,000 13,272,000 San F ran cisco.............. .......... 187,280,000 132,880,000 129,814,000 16,585,000 .......... $2,663,201,000 Philadelphia T otal ................. $1,600,034,000“ $2,590,551,000 a In clu d es $350,991,000 n on com p etitiv e ten ders a ccep ted at the average price o f 98.464. b In clu d es $204,297,000 n on com p etitiv e tenders a ccep ted at the average price o f 96.849. $l,100,391,000b
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