BANKING & FINANCE - March 10, 1992

Treasury Bill Rates Mixed: The Treasury sold $11.4 billion worth of new three-month bills at an average discount rate of 4.02%, unchanged from last week. Another $11.4 billion worth of new six-month bills was sold at an average discount rate of 4.13%, up from 4.10% last week. The three-month bill rate remained the highest since they sold for 4.14% on Dec. 16. The six-month bill rate was the highest since they averaged 4.19%, also on Dec. 16. The new discount rates understate the actual return to investors--4.12% for three-month bills, with a $10,000 bill selling for $9,898.40, and 4.28% for a six-month bill selling for $9,791.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 4.13% 3-month: 4.02%