BANKING

T-Bill Rates Fall: The Treasury sold $11.7 billion in new three-month bills at an average discount rate of 3.66%, down from 3.71% last week. Another $11.7 billion in new six-month bills was sold at an average discount rate of 3.75%, down from 3.83% 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 on May 18. The new discount rates understate the actual return to investors--3.74% for three-month bills, with a $10,000 bill selling for $9,907.50, and 3.88% for a six-month bill selling for $9,810.40. The discount rate reflects the price discount received when the securities are purchased at less than face value.

T-Bill Auction 3-month: 3.75% 6-month: 3.66%