BANKING & FINANCE - Oct. 20, 1992
From Times Staff and Wire Reports
Treasury Bill Yields Rise: The Treasury sold $11.6 billion of new three-month bills at an average discount rate of 2.94%, up from 2.88% last week. Another $11.6 billion of new six-month bills was sold at an average discount rate of 3.10%, up from 2.95% last week. The rates were the highest since Aug. 31, when three-month bills sold for 3.17%, and the six-month rate averaged 3.26%. The new discount rates understate the actual return to investors--3.00% for three-month bills, with a $10,000 bill selling for $9,925.70, and 3.19% for a six-month bill selling for $9,843.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.
