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FED ER A L R E S E R V E BANK OF NEW YORK Fiscal Agent o f the United States TCircular No. 6 3 3 6 ~ 1 May 21, 1969 J L OFFERING OF TWO SERIES OF TREASURY BILLS $1,700,000,000 of 91-Day Bills, Additional Amount, Series Dated February 27,1969, Due August 28,1969 (To Be Issued May 29,1969) $1,300,000,000 of 183-Day Bills, Dated May 29, 1969, Due November 28, 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 at 4 p.m. today: T h e Treasury Department, by this public notice, invites tenders for tw o series o f Treasury bills to the aggregate amount o f $3,000,000,000, or thereabouts, for cash and in ex change for Treasury bills maturing M ay 29, 1969, in the amount of $3,002,261,000, as follow s: 91-day bills (to maturity date) to be issued M ay 29, 1969, in the amount of $1,700,000,000, or thereabouts, representing an additional am ount o f bills dated February 27, 1969, and to mature August 28, 1969, originally issued in the am ount o f $1,100,827,000, the additional and original bills to be freely inter changeable. 183-day bills, for $1,300,000,000, or thereabouts, to be dated M ay 29, 1969, and to mature N ovem ber 28, 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 amount will be payable without 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D ay light Saving time, M onday, May 26, 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 o f 100, with not more 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 ac count 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 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 by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f 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 D epart 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 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 deci m als) o f 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 M ay 29, 1969, in cash or other immediately available funds or in a like face amount o f Treasury bills maturing M ay 29, 1969. 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 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 o r 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 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 inter est. Under Sections 454(b) and 1221(5) o f the Internal R ev enue Code of 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 ccordin gly, the owner o f Treasury bills (oth er than life in surance 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 pur chase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 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 Daylight Saving time, Monday, May 26, 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 ether immediately available funds or in maturing Treasury bills. Results o f the last weekly offering of Treasury bills (91-day bills to be issued May 22, 1969, representing an additional amount of bills dated February 20, 1969, maturing August 21, 1969; and 182-day bills dated May 22, 1969, maturing November 20, 1969) are shown on the reverse side of this circular. A lfred H a y e s , President. Please note that the Treasury bills maturing November 28, 1969, will be 183-day bills. ( over) RESULTS OF LAST W EEKLY OFFERING OF TREASURY BILLS (TWO SERIES TO BE ISSUED M AY 22, 1969) Range of Accepted Competitive Bids 91-Day Treasury Bills Maturing August 21, 1969 Price 182-Day Treasury Bills Maturing November 20, 1969 A pprox. equiv. annual rate Price Approx. equiv. annual rate High ............ ...................... 98.458 6.100% 96.864 6.203% L o w .............. ...................... 98.436 6.187% 96.836 6.258% Average . . . . ...................... 98.446 6.148%! 96.850 6.231%! 1 These rates are on a bank discount basis. The equivalent coupon issue yields are 6.33 percent for the 91-day bills, and 6.52 percent for the 182-day bills. (34 percent of the amount o f 91-day bills bid for at the low price was accepted.) (9 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 November 20, 1969 91-Day Treasury Bills Maturing August 21, 1969 $ 17,239,000 $ 10,389,000 $ 10,389,000 .......... ew York ............ .......... 2,042,312,000 1,284,412,000 1,979,956,000 1,088,756,000 Philadelphia.......... ............ 33,729,000 18,729,000 17,352,000 7,352,000 Cleveland .............. ................ 32,320,000 30,462,000 23,786,000 23,686,000 R ich m on d.............. ................ 18,214,000 17,884,000 10,838,000 8,883,000 .............. 41,715,000 34,895,000 35,825,000 30,257,000 Chicago ................ ................ 140,662,000 114,362,000 108,909,000 28,259,000 St. Louis .............. .............. 44,001,000 41,001,000 20,804,000 18,149,000 M inneapolis.......... ............ 22,722,000 20,722,000 16,652,000 9,697,000 Kansas C i t y .......... ................ 26,373,000 26,372,000 19,244,000 19,244,000 .............. 24,452,000 15,452,000 21,050,000 12,050,000 San Francisco . . . . ................ 134,170,000 78,710,000 149,616,000 43,500,000 ................ $2,587,909,000 N Atlanta .................. Dallas .................... T otal . . . 27,239,000 Accepted .................. Boston $ Applied fo r Accepted Applied fo r District $1,700,240,000 a Includes $309,607,000 noncom petitive tenders accepted at the average price o f 98.446. b Includes $146,229,000 noncom petitive tenders accepted at the average price o f 96.850. $2,414,421,000 $1,300,222,000b
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