BANKING

T-Bill Rates Hit Lowest Level in 19 Years: The Treasury sold $10.29 billion of new three-month bills at an average discount rate of 4.21%, down from 4.39% last week. Another $10.2 billion of new six-month bills was sold at an average discount rate of 4.20%, also down from 4.39% last week. The three-month bill rate was the lowest since they sold for 4.058% on Aug. 21, 1972. The six-month bill rate was the lowest since they averaged 4.187% on June 12, 1972. The new discount rates understate the actual return to investors: 4.33% for three-month bills, with a $10,000 bill selling for $9,893.60, and 4.36% for a six-month bill selling for $9,787.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 4.20% 3-month: 4.21%