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F E D E R A L R E S E R V E BAN K O F N EW Y O R K Fiscal A gent of the U nited States f Circular No. 6 6 5 9 l L D ecem ber 21, 1970 J Revised Treasury Department Circulars on Offering of Series E and H Savings Bonds To Issuing and Paying Agents for United States Savings Bonds in the Second Federal Reserve District: Enclosed are copies of the following documents: Federal Register, P a rt I I , dated N ovem ber 14, 1970, which contains the tex t of T reasu ry D epart m ent C ircular No. 653, E ig h th Revision, A m endm ent O ne, “ O ffering of U nited States Savings Bonds, Series E ,” effective Ju n e 1, 1970. Federal Register, P a rt I I, dated N ovem ber 13, 1970, which contains the tex t of T reasu ry D ep art m ent C ircular No. 905, F ifth Revision, A m endm ent One, “ O ffering of U nited States Savings Bonds, Series H ,” effective Ju n e 1, 1970. The revised Treasury circulars reflect the June 1, 1970 improvements in investment yield that were announced in our Circular No. 6599, dated September 1, 1970, as follows: Series E Series H 1. Series E Bonds purchased on o r after June 1, 1970 w hen held to m aturity will receive an e x tra ^ percent, payable at m aturity, raising the yield to 51 /2 percent from date of issue to date of m aturity. 1. Series H Bonds purchased on or after 1970 will yield approxim ately 5.12 percent first 5 years and 6 percent for the rem aining to m aturity, providing an over-all yield of 5^2 from date of issue to date of m aturity. 2. O utstanding E Bonds th at have not reached th eir first m atu rity will receive a percent increase in yield for sem iannual interest periods beginning on or after Ju n e 1, 1970, payable as a bonus a t m aturity. 2. O utstanding H Bonds that have been held for less than 5 years will receive a Yi percent increase in yield for sem iannual interest periods beginning on or after June 1, 1970, payable as a bonus in the form of increased sem iannual interest paym ents during the second 5 years to m aturity. 3. O u tstan d in g E Bonds th at have reached first m aturity, or are extended beyond first m aturity while the bonus is in effect, will have the ^ percent cred ited a t the end of each sem iannual interest period beginning on or after Ju n e 1, 1970, through their next m aturity. T h e bonus is payable w henever the bonds are redeemed. June 1, for the 5 years percent 3. H Bonds that have been held 5 years, or are extended while the bonus is in effect, will receive a y2 percent increase in yield for sem iannual interest periods beginning on or after June 1, 1970. T he bonus will be added to sem iannual interest checks through next m aturity. Additional copies of the enclosures will be furnished upon request. A lfred H a y es, President.
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