BANKING

T-Bill Interest Rates Fall to 14-Year Low: The Treasury sold $10.8 billion of new three-month bills at an average discount rate of 4.99%, down from 5.04% last week. Another $10.8 billion of new six-month bills was sold at an average discount rate of 5.03%, down from 5.08% last week. The three-month bill rate was the lowest since they sold for 4.965% on June 27, 1977. The six-month bill rate was the lowest since they averaged 4.838% on April 25, 1977. The new discount rates understate the actual return to investors--5.14% for three-month bills with a $10,000 bill selling for $9,873.90 and 5.25% for a six-month bill selling for $9,745.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 5.03% 3-month: 4.99%