BANKING

Short-Term T-Bill Interest Rates Lowest Since 1977: The Treasury sold $10.2 billion in new three-month bills at an average discount rate of 4.64%, down from 4.74% last week. An additional $10.3 billion in new six-month bills was sold at an average discount rate of 4.71%, down from 4.80% last week. The three-month bill rate was the lowest since 4.518% on April 25, 1977. The six-month bill rate was the lowest since 4.708% on April 18, 1977. The new discount rates understate the actual return to investors--4.77% for three-month bills, with a $10,000 bill selling for $9,882.70, and 4.9% for a six-month bill selling for $9,761.90.

T-Bill Auction 6-month: 4.71% 3-month: 4.64%