BANKING

T-Bill 6-Month Rates Lowest in 29 Years: The Treasury sold $11.7 billion in new six-month bills at an average discount rate of 3.32%, down from 3.66% last week. Another $11.7 billion in new three-month bills was sold at an average discount rate of 3.23%, down from 3.59%. The six-month bill rate was the lowest since they averaged 3.272% on July 8, 1963. The three-month bill rate was the lowest since they sold for 3.145% on Feb. 18, 1972. The new discount rates understate the actual return to investors--3.30% for three-month bills, with a $10,000 bill selling for $9,918.40, and 3.42% for a six-month bill selling for $9,832.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.32% 3-month: 3.23%