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FEDERAL RESERVE BANK OF N EW YORK
Fiscal Agent of the United States
39
t Circular No.3,6 19699 ]
September

OFFERING OF TWO SERIES OF TREASURY BILLS
$1,600,000,000 of 91-Day Bills, Additional Amount, Series Dated June 12,1969, Due December 11,1969
(To Be Issued September 11, 1969)
$1,200,000,000 of 182-Day Bills, Dated September 11, 1969, Due March 12, 1970
To All Incorporated Banlcs 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 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 of $2,800,000,000, or thereabouts, for cash and in ex­
change for Treasury bills maturing September 11, 1969, in the
amount of $2,800,296,000, as follow s:
91-day bills (to maturity date) to' be issued Sep­
tember 11, 1969, in the amount o f $1,600,000,000, or
thereabouts, representing an additional amount of
bills dated June 12, 1969, and to mature D ecem ­
ber 11, 1969, originally issued in the amount of
$1,300,610,000, the additional and original bills to be
freely interchangeable.
182-day bills, for $1,200,000,000 or thereabouts, to be
dated September 11, 1969, and to mature M arch 12,
1970.
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 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 D ay­
light Saving time, M onday, September 8, 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 competitive tenders the price offered must be ex ­
pressed 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 own
account. Tenders will be received without deposit from in­
corporated banks and trust companies and from responsible
and recognized dealers in investment securities. Tenders from
others must be accompanied by payment of 2 percent o f the
face amount of Treasury bills applied for, unless the tenders
are accom panied by an express guaranty of payment by an
incorporated bank or trust company.
Imm ediately after the closing hour, tenders will be
opened at the Federal Reserve Banks and Branches, follow ing

which public announcement will be made by the Treasury
Department o f the amount and price range of accepted bids.
Those submitting 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, noncompetitive 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 competitive bids for the respective
issues. Settlement for accepted tenders in accordance with the
bids must be made or completed at the Federal Reserve Bank
on September 11, 1969, in cash or other immediately available
funds or in a like face amount o f Treasury bills maturing
September 11, 1969. Cash and exchange tenders will receive
equal treatment. Cash adjustments will be made for differ­
ences 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 of Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exempt from all taxa­
tion now or hereafter im posed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority.
F or purposes o f
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) of the Internal R eve­
nue 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
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 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, Sep­
tember 8, 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 f o r Treasury Bills.” Tenders may be submitted by telegraph, subject to written
c o n fir m a tio n ; they may not be submitted by telephone. Payment fo r 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 September 4, 1969, representing
an additional amount of bills dated June 5, 1969, maturing December 4, 1969; and 182-day bills dated September 4,
1969, maturing March 5, 1970) are shown on the reverse side of this circular.




A

lfred

H

ayes,

President.
( over)

RESULTS OF LAST W EEK LY OFFERING OF TREASURY BILLS (TW O SERIES
TO BE ISSUED SEPTEMBER 4, 1969)

Range of Accepted Competitive Bids

9 1-Day Treasury Bills
Maturing December 4,196 9

182-D ay Treasury Bills
Maturing March 5,19 7 0

Approx. equiv.
annual rate

Price

Approx. equiv.
annual rate

98.244a

6.947%

96.405

7.111%

L o w .............................. .................

98.222

7.034%

96.360

7.200%

Average........................ .................

98.227

7.014%*

96.377

7.166%a

Price

High

............................ .................

a Excepting one tender o f $100,000.
1
These rates are on a bank discount basis. The equivalent coupon issue yields are 7.24 percent for the 91-day bills, and 7.54
percent fo r the 182-day bills.

(9 percent of the amount of 91-day bills
bid for at the low price was accepted.)

(22 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)

9 1-Day Treasury Bills
Maturing December 4,1969
Applied fo r

District

Boston

.......................................

$

29,754,000

182-D ay Treasury Bills
Maturing March 5 ,19 7 0

Accepted,

$

18,108,000

Applied fo r

$

8,825,000

Accepted

$

8,825,000

New York ................... ...........

1,964,124,000

1,065,597,000

1,645,717,000

872,212,000

Philadelphia................... ...........

35,638,000

20,390,000

19,879,000

9,879,000

Cleveland ...................................

29,223,000

27,732,000

30,985,000

30,408,000

Richmond....................... ..........

25,163,000

25,163,000

17,710,000

17,710,000

Atlanta ............................ ..........

41,835,000

29,178,000

30,432,000

23,432,000

Chicago .......................... .........

267,474,000

235,783,000

129,793,000

94,535,000

St. Louis ........................ ........

43,947,000

28,507,000

26,697,000

19,107,000

Minneapolis ................... .........

26,569,000

25,569,000

18,741,000

17,241,000

Kansas C it y ................... .........

26,632,000

23,026,000

22,545,000

22,091,000

Dallas .............................. ........

27,167,000

15,667,000

22,029,000

12,639,000

164,195,000

85,304,000

130,192,000

72,012,000

San Francisco...............
T

o tal

...................

.........

$2,681,721,000

$1,600,024,000b

$2,103,545,000

b Includes $314,854,000 noncom petitive tenders accepted at the average price o f 98.227.
c Includes $176,110,000 noncom petitive tenders accepted at the average price o f 96.377.




$1,200,091,000c


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102