Evening star., 1960-01-29
1reasuryRate
ShowsEasinq
In Market

ouC CIlaC a 1eW weeks ago there
was a strong feeling in A.
nancial circles that money
rates would go still higher.
The Presidents state-of-the
Union message was followed by
a noticeable lessening in in
f1ationary fears and the bond
market improved, he said. Re-
cent declines in the stock mar
ket may be a part of the same
picture, he suggested.
With newsmen straining for
some comment on the general
outlook as seen from the Treas
ury. the official said a reap
praisal of the economic outlook
may have led to the change in
market sentiment. Perhaps in
VentorieS are not building up
as fast as some expected, he
said.
Terms Are Outlined
For the current refunding
the Treasury will offer 47a per
cent one-year certificates of
Indebtedness at par, and 47s
per cent four-year, nine-month
notes at 99.75 per cent of face
value, to yield about 4.93 per
cent.
The former will be dated
February is and mature Feb
ruary is. 1861, with interest
payable August IA, 1860, and
February IS, 1861.
The notes will be dated Feb
ruary Is and mature Novem-
Der is. 1864. Interest will be
payable May IS and November
Is each year until maturity.
Maturing obligations for
which the new securities will
be exchangable include $ll,-
1868, 100000 of 334 per cent GER
tit1cateS Of Indebtedness, series
A-l960, maturing February IS,
and $l98 million Of IA per
cent Treasury notes, series EA-
1860, maturing April /.
Books Open 3 Days
Subscription books will be
open only on February& l
through February 3. next Mon
day through Wednesday. Any
subscription addressed to the
Treasury or a Federal Reserve
Bank or branch and placed in
the mail before midnight of
February 3 will be considered
as timely. No cash subscrip-
tlons will be accepted.
Because Of increased demand
from small investors as illus
trated by the recent rush for
Magic SIS. the Treasury will
make the new four-year, nine
month notes available in regis
tered as well as bearer form.
Before the Magic SIS were
offered, the Treasury had
around 100000 investors on its
registered list. but the total has
jumped around $4,000 since
then.
The 47s per cent rate for the
refunding was fixed about an
hour before the announcement
last night and was based on
an appraisal Of the market
through yesterday, the Treasury
official said. 1t was considered
slig htly above the actual
market in order to assure its
acceptability through next
Wednesday.
Public Has Large Part
About half Of the $ll,363,-
100000 of maturing certificates,
or S5.7 million, are held by the
public. All but around 81 mil
lion Of the $198 million Of
maturing notes also are publicly
owned.
Exchanging of maturing GER
tiflcates will be made for a like
amount of eligible securities as
OF February Is. Coupons dated
February Is on maturing certi-
ficateS should be detached and
cashed when due. A cash pay
ment of $3.50 per $1,000 face
value of the new AZ per cent
notes, representing the discount
from face value, will be paid
upon issuance of the notes to
be exchanged.
Exchanges of maturing
Treasury notes will be made
for a like amount of eligible
securities as of February Is. In
terest on the ll2 per cent issue
will be adjusted as of March Is,
1860. Coupons dated April
should be attached to the notes
when surrendered and interest
from October / to March Is will
be credited. interest from Feb
ruary is to March Is on the
new issues will be charged, and
the difference will he mold