BANKING & FINANCE - Sept. 9, 1992

Treasury Bill Rates Hit 29-Year Low: Interest rates on short-term Treasury securities fell in Tuesday’s auction to the lowest level in 29 years. The Treasury Department sold $11 billion in three-month bills at an average discount rate of 2.91%, down from 3.17% last week. Another $11 billion was sold in six-month bills at an average discount rate of 2.95%, down from 3.26% last week. The three-month bill rate was the lowest since they sold for 2.903% on May 13, 1963. The six-month bill rate was the lowest since they averaged 2.931% on March 11, 1963. In a separate report, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 3.39% last week, down from 3.52%.