BANKING & FINANCE - Feb. 25, 1992

T-Bill Rates Rise to 10-Week Highs: The Treasury sold $11.3 billion of new three-month bills at an average discount rate of 3.96%, up from 3.83% last week. An additional $11.2 billion of new six-month bills was sold at an average discount rate of 4.08%, up from 3.93% last week. The three-month bill rate was the highest since they sold for 4.14% Dec. 16. The six-month bill rate was the highest since they averaged 4.19% on that same date. The new discount rates understate the actual return to investors--4.07% for three-month bills with a $10,000 bill selling for $9,899.90 and 4.24% for a six-month bill selling for $9,793.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 4.08% 3-month: 3.96%