BANKING

T-Bill Rates Fall Again: The Treasury sold $10.4 billion of new three-month bills at an average discount rate of 4.74%, down from 4.99% last week. Another $10.5 billion of new six-month bills was sold at an average discount rate of 4.80%, down from 5.04% last week. The three-month bill rate was the lowest since they sold for 4.518% on April 25, 1977. The six-month bill rate was the lowest since they averaged 4.708% on April 18, 1977. The new discount rates understate the actual return to investors: 4.88% for three-month bills, with a $10,000 bill selling for $9,880.20, and 5% for a six-month bill selling for $9,757.30.

T-Bill Auction 6-month: 4.80% 3-month: 4.74%