BANKING AND FINANCE

T-Bill Rates Fall: The Treasury sold $10.2 billion of new three-month bills at an average discount rate of 5.58%, down from 5.61% last week. Another $10.2 billion was sold in six-month bills at an average discount rate of 5.76%, down from 5.79% last week. The three-month bill rate was the lowest since they sold for 5.46% on May 28. The six-month bill rate was the lowest since they averaged 5.71% on June 3. The new discount rates understate the actual return to investors: 5.75% for three-month bills, with a $10,000 bill selling for $9,859.00, and 6.03% for a six-month bill selling for $9,708.80. The discount rate reflects the discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.76% 3-month: 5.58%