BANKING & FINANCE - July 28, 1992

Short-Term Treasury Yields Higher at Auction: The Treasury sold $11.6 billion of new three-month bills at an average discount rate of 3.18%, up from 3.16% last week. Another $11.6 billion of new six-month bills was sold at an average discount rate of 3.27%, up from 3.24% last week. The rates were the highest since July 13, when three-month bills sold for 3.22% and the six-month rate was 3.31%. The new discount rates understate the actual return to investors--3.25% for three-month bills, with a $10,000 bill selling for $9,919.60, and 3.37% for a six-month bill selling for $9,834.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.27% 3-month: 3.18%