BANKING & FINANCE - June 29, 1993

Treasury Bill Rates Fall to 6-Week Low: The Treasury sold $12.3 billion of new three-month bills at an average discount rate of 3.05%, down from 3.10% last week. Another $12.3 billion of new six-month bills was sold at an average discount rate of 3.14%, down from 3.19% last week. The rates were the lowest since May 17, when the three-month bills sold for 3.00% and the six-month bills averaged 3.10%. The new discount rates understate the actual return to investors: 3.12% for three-month bills, with a $10,000 bill selling for $9,922.90, and 3.23% for a six-month bill selling for $9,841.30. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction 3-month: 3.05% 6-month: 3.14%