BANKING & FINANCE - Sept. 22, 1992

Interest Rates Rise on Treasury Bills: The Treasury sold $10.3 billion in new three-month bills at an average discount rate of 2.91%, up from 2.89% last week. Another $10.3 billion in new six-month bills was sold at an average discount rate of 2.93%, up from 2.90% last week. The three-month bill rate was the highest since they also sold for 2.91% on Sept. 8. The six-month bill rate was the highest since they averaged 2.95%, also on Sept. 8. The new discount rates understate the actual return to investors--2.97% for three-month bills, with a $10,000 bill selling for $9,926.40, and 3.01% for a six-month bill selling for $9,851.90. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction

3-month: 2.91%

6-month: 2.93%