BANKING

T-Bill Rates Fall: The Treasury Department sold $11.7 billion of new three-month bills at an average discount rate of 3.71%, down from 3.75% last week. Another $11.6 billion of new six-month bills was sold at an average discount rate of 3.83%, down from 3.90% last week. The three-month bill rate was the lowest since they sold for 3.61% on May 18. The six-month bill rate was the lowest since they averaged 3.71%, also May 18. The new discount rates understate the actual return to investors--3.80% for three-month bills, with a $10,000 bill selling for $9,906.20, and 3.96% for a six-month bill selling for $9,806.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.83% 3-month: 3.71%