BANKING & FINANCE - Jan. 5, 1993
From Times Staff and Wire Reports
Treasury Bill Rates Decline: The Treasury Department sold $12.5 billion of new three-month bills at an average discount rate of 3.15%, down from 3.22% last week. Another $12.5 billion of new six-month bills was sold at an average discount rate of 3.28%, down from 3.38%. The three-month bill rate was the lowest since they sold for 3.13% on Nov. 16. The six-month bill rate was the lowest since they averaged 3.27% on Nov. 2. The new discount rates understate the actual return to investors--3.22% for three-month bills with a $10,000 bill selling for $9,920.40 and 3.38% for a six-month bill selling for $9,834.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
