BANKING & FINANCE - July 14, 1992

T-Bill Rates Fall to Historic Lows: Interest rates on six-month Treasury securities fell in Monday’s auction to the lowest level in 29 years. Rates on three-month bills fell to a 20-year low. The Treasury Department sold $11.6 billion in three-month bills at an average discount rate of 3.22%, down from 3.23% last week. An additional $11.7 billion was sold in six-month bills at an average discount rate of 3.31%, down from 3.32% last week. The three-month bill rate was the lowest since they sold for 3.145% on Feb. 18, 1972. The six-month bill rate was the lowest since they averaged 3.272% on July 8, 1963. The new discount rates understate the actual return to investors--3.29% for three-month bills, with a $10,000 bill selling for $9,918.60, and 3.41% for a six-month bill selling for $9,832.70.