BANKING & FINANCE - Aug. 18, 1992

Treasury Bill Rates Fall: The Treasury Department sold $11.6 billion of new three-month bills at an average discount rate of 3.10%, down from 3.13% last week. Another $11.6 billion of new six-month bills was sold at an average discount rate of 3.18%, down from 3.19% last week. The three-month bill rate was the lowest since they sold for 3.066% on Feb. 14, 1972. The six-month bill rate was the lowest since they averaged 3.093% on July 1, 1963. The new discount rates understate the actual return to investors--3.17% for three-month bills, with a $10,000 bill selling for $9,921.60, and 3.28% for a six-month bill selling for $9,839.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 6-month: 3.18% 3-month: 3.10%