BANKING & FINANCE - May 27, 1992
From Times Staff and Wire Reports
Treasury Bill Rates Rise: The Treasury sold $11.6 billion worth of new three-month bills at an average discount rate of 3.75%, up from 3.61% last week. Another $11.6 billion worth of new six-month bills was sold at an average discount rate of 3.90%, up from 3.71% last week. The rates were the highest since April 6, when three-month bills sold for 3.95% and the six-month rate was 4.02%. The new discount rates understate the actual return to investors--3.84% for three-month bills, with a $10,000 bill selling for $9,905.20, and 4.03% for a six-month bill selling for $9,801.80. The discount rate reflects the price discount received when government securities are purchased at less than face value.
T-Bill Auction 6-month: 3.90% 3-month: 3.75%
