BANKING & FINANCE - Feb. 11, 1992

T-Bill Rates Fall to Lowest Level in 20 Years: The Treasury sold $10.4 billion in new three-month bills at an average discount rate of 3.72%, down from 3.86% last week. An additional $10.5 billion in new six-month bills was sold at an average discount rate of 3.80%, down from 3.93% last week. The three-month bill rate was the lowest since they sold for 3.699% on May 15, 1972. The six-month bill rate was the lowest since they averaged 3.796% on March 6, 1972. The new discount rates understate the actual return to investors: 3.82% for three-month bills, with a $10,000 bill selling for $9,906.00, and 3.94% for a six-month bill selling for $9,807.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.80% 3-month: 3.72%