BANKING

T-Bill Rates Fall to Lowest Level in 20 Years: The Treasury sold $11.7 billion in new three-month bills at an average discount rate of 3.59%, down from 3.67% last week. Another $11.7 billion in new six-month bills was sold at an average discount rate of 3.66%, down from 3.77% last week. The three-month bill rate was the lowest since they sold for 3.462% on May 5, 1972. The six-month bill rate was the lowest since they averaged 3.513% on Feb. 18, 1972. The new discount rates understate the actual return to investors--3.67% for three-month bills, with a $10,000 bill selling for $9,909.30, and 3.78% for a six-month bill selling for $9,815.00.

T-Bill Auction 6-month: 3.66% 3-month: 3.59%