The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States rCircular No. 6 2 9 3 -1 1~ February 19, 1969 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated November 29, 1968, Due May 29, 1969 (To Be Issued February 27, 1969) $1,100,000,000 of 182-Day Bills, Dated February 27, 1969, Due August 28, 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: 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 February 27, 1969, in the amount o f $2,704,300,000, as follow s: 91-day bills (to maturity date) to be issued February 27, 1969, in the amount of $1,600,000,000, or thereabouts, representing an additional amount o f bills dated N o vem ber 29, 1968, and to mature M ay 29, 1969, originally issued in the amount o f $1,100,150,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,100,000,000, or thereabouts, to be dated February 27, 1969, and to mature A ugust 28, 1969. T h e bills of 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 without interest. T h ey will be issued in bearer form only, and in denominations of $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, Monday February 24, 1969. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple of $1,000, and in the case of 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 enve lopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of 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 own account. Tenders w ill 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 accompanied by payment o f 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accompanied 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 announcement will be made by the Treasury Depart ment o f the amount and price range o f accepted bids. T h ose submitting tenders will be advised o f the acceptance or rejec tion thereof. The Secretary o f the Treasu ry exoresslv reserves the right to accept or reject any or all tenders, in w h o k o 7 t o 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 decimals') of accepted com petitive bids for the respective is s u e d Settle ment for accepted tenders in accordance with the bids must be made or com pleted at the Federal R eserve Bank on F eb ruary 27, 1969, in cash or other im mediately available funds or in a like face amount o f Treasury bills maturing February 27 1969. Cash 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 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 im posed on the principal or interest thereof by any State, or any o f the possessions of the United States, or by any local taxing authority. F or purposes o f taxa tion the amount of discount at w hich Treasury bills are origi nally 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 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 owner of 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 amount actually received either upon sale or redem ption at maturity during the taxable year for which 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 of their issue. Copies o f 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, February 24, 1969, at the Securities Department o f 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 o f Treasury bills (91-day bills to be issued February 20, 1969, representing an additional amount o f bills dated November 21, 1968, maturing May 22, 1969; and 182-day bills dated February 20, 1969, maturing August 21, 1969) are shown on the reverse side o f 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 FEBRUARY 20, 1969) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing May 22, 1969 182-Day Treasury Bills Maturing August 21, 1969 P rice A pprox. eguiv. annual rate .................... ........................ 98.475 6.033% 96.850* 6.231% Low ...................... ........................ 98.446 6.148% 96.814 6.302% Average 98.460 6.092%! 96.831 6.268%1 High .............. ........................ Approx. equiv. annual rate Price a Excepting one tender o f $130,000. 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 6.27 percent for the 91-day bills, and 6.56 percent for the 182-day bills. (16 percent of the amount of 91-day bills bid for at the low price was accepted.) (3 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) 182-Day Treasury Bills Maturing August 21, 1969 91-Day Treasury Bills Maturing May 22, 1969 Applied fo r District B o sto n .................. .................. $ 18,303,000 Accepted $ 18,303,000 Accepted Applied fo r $ 5,065,000 $ 5,065,000 New York .......... .................. 1,795,018,000 1,086,818,000 1,506,557,000 805,507,000 Philadelphia........ .................. 34,761,000 19,761,000 17,882,000 7,882,000 Cleveland ............ .................. 27,933,000 27,933,000 20 , 122,000 20 , 122,000 R ich m on d............ .................. 13,530,000 13,530,000 6,789,000 6,789,000 Atlanta ................ .................. 49,394,000 49,394,000 33,510,000 26,510,000 .............. .................. 179,357,000 148,517,000 144,975,000 81,475,000 St. Louis ............ ................ 45,361,000 43,361,000 23,744,000 19,759,000 Minneapolis ........ .................. 30,654,000 30,654,000 25,976,000 25,976,000 Kansas C i t y ........ .................. 32,400,000 29,900,000 19,156,000 18,086,000 Dallas .................. .................. 27,725,000 19,725,000 24,891,000 15,891,000 .................. 145,751,000 112,351,000 139,991,000 67,021,000 . . .................. $2,400,187,000 Chicago San Francisco T otal $1,600,247,000b $1,968,658,000 b Includes $320,787,000 noncom petitive tenders accepted at the average price of 98.460. c Includes $167,279,000 noncom petitive tenders accepted at the average price of 96.831. $1,100,083,000c
@FedFRASER