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FEDERAL RESERVE BANK OF N EW YORK Fiscal Agent of the United States rCircular No. 6 2 8 1 - ] I' January 29, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated November 7, 1968, Due May 8, 1969 (To Be Issued February 6, 1969) $1,100,000,000 of 182-Day Bills, Dated February 6, 1969, Due August 7, 1969 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve D istrict: 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 Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount of $2,700,000,000, or thereabouts, for cash and in exchange for Treasury bills maturing February 6, 1969, in the amount o f $2,703,621,000, as follow s: 91-day bills (to maturity date) to be issued February 6, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount of bills dated N o vember 7, 1968, and to mature M ay 8, 1969, originally issued in the amount o f $1,101,010,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated February 6, 1969, and to mature August 7, 1969. T h e 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 amount will be payable w ithout interest. T h ey w ill 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 w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, M onday, February 3, 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 o f com petitive tenders the price offered must be expressed on the basis of 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 envel opes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account o f custom ers, provided the names o f the custom ers are set forth in such tenders. O thers than banking institutions will not be permitted to submit tenders except for their _ ow n account. Tenders will be received without deposit from incor porated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accom panied b y payment o f 2 percent o f the face amount o f T reasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust com pany. Imm ediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, follow in g which public announcem ent w ill be made by the Treasury D epart ment of the am ount and price range o f accepted bids. T h ose subm itting tenders will be advised o f the acceptance or rejec tion thereof. I h e Secretary o f 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 r° reservations, noncom petitive tenders fo r each issue l01ii iT 00 or 1®SS w ithout stated price from any one bidder will be accepted in full at the average price (in three decim als) o accepted com petitive bids for the respective issues. Settle ment fo r accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on F eb ruary 6, 1J69, in cash or other immediately available funds or in a like face amount o f Treasury bills m aturing February 6, 1969. Lash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of 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 C ode 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 n ow or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, o r by any local taxing authority. For purposes o f taxa tion the am ount o f discount at w hich Treasury bills are origi nally sold by the United States is considered to be interest U nder Sections 454(b) and 1221(5) o f the Internal Revenue Code o f 1954, the amount o f discount at w hich 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 ccord in g ly the ow ner o f Treasury bills (oth er than life insurance c o m 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 redem ption at maturity during the taxable year fo r w hich the return is made as ordinary gain or loss. ’ Treasury Departm 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 R eserve Bank or Branch This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday, February 3, 1969, at the Securities Department o f its Head Office and at its Buffalo Branch, fender 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 30, 1969, representing an additional amount of bills dated October 31, 1968, maturing May 1, 1969; and 182-day bills to be issued January 30, 1969, representing an additional amount of bills dated July 31, 1968, maturing July 31, 1969) are shown on the reverse side of this circular. A lfred H a y e s , President. (ovxx) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED JANUARY 30, 1969) Range o f Accepted Competitive Bids 91-Day Treasury Bills Maturing May 1,1969 182-Day Treasury Bills Maturing July 31,1969 Price Approx. equiv. annual rate Price Approx. equiv. annual rate High .................................... 98.448 6.140% 96.849 6.233% Low ...................................... 98.437 6.183% 96.835 6.260% 6.167%1 96.838 6.255%! A v e ra g e .......... .................. . 98.441 1 These rates are on a bank discount basis. T he equivalent coupon issue yields are 6.35 percent for the 91-day bills, and 6.55 percent for the 182-day bills. (17 percent of the amount of 91-day bills bid for at the low price was accepted.) (65 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 May 1,1969 District Boston Applied for ................ New York . .......... $ 32,105,000 182-Day Treasury Bills Maturing July 31,1969 Accepted $ 17,706,000 Accepted Applied for $ 7,330,000 $ 6,300,000 .......... 1,934,851,000 1,087,876,000 1,912,539,000 895,519,000 .......... 34,569,000 18,773,000 18,595,000 8,273,000 Cleveland . . . .......... 32,134,000 29,983,000 47,358,000 22,828,000 Richmond .......... 45,876,000 38,176,000 21,055,000 7,055,000 32,465,000 30,251,000 13,416,000 145,029,000 37,835,000 Philadelphia ... .. Atlanta . . . Chicago .... .......... 235,024,000 175,280,000 St. Louis ............ .......... 59,585,000 50,025,000 38,802,000 30,666,000 Minneapolis ........ .......... 25,242,000 13,492,000 18,314,000 5,374,000 Kansas C i t y ........ .......... 28,909,000 26,590,000 27,199,000 17,716,000 16,956,000 22,542,000 11,542,000 93,247,000 160,060,000 45,780,000 Dallas ................ San Francisco . . . T otal ................. ........ 141,777,000 ........ $2,648,027,000 $1,600,569,000a $2,449,074,000 a In clu d es $331,005,000 n on com p etitiv e ten ders a cce p te d at the average p rice o f 98.441. b In clu d es $180,994,000 n on com p etitiv e tenders a ccep ted at the average price o f 96.838. $1,102,304,000b
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