BANKING & FINANCE - May 5, 1992

T-Bill Rates Fall: The Treasury sold $11.4 billion of new three-month bills at an average discount rate of 3.65%, down from 3.71% last week. Another $11.5 billion of new six-month bills was sold at an average discount rate of 3.78%, down from 3.85% last week. The three-month bill rate was the lowest since they sold for 3.60% on April 13. The six-month bill rate was the lowest since they averaged 3.73%, also on April 13. The new discount rates understate the actual return to investors--3.74% for three-month bills, with a $10,000 bill selling for $9,907.70 and 3.91% for a six-month bill selling for $9,808.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.78% 3-month: 3.65%