BANKING

T-Bill Rates Fall Again: The Treasury sold $10.2 billion of new three-month bills at an average discount rate of 4.58%, down from 4.64% last week. Another $10.2 billion of new six-month bills was sold at an average discount rate of 4.62%, down from 4.71%. 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 4.555% on Jan. 3, 1977. The new discount rates understate the actual return to investors--4.71% for three-month bills, with a $10,000 bill selling for $9,884.20, and 4.81% for a six-month bill selling for $9,766.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 4.62% 3-month: 4.58%