BANKING & FINANCE - Oct. 19, 1993
From Times Staff and Wire Reports
Treasury Bill Rates Rise: The Treasury sold $13 billion worth of new three-month bills at an average discount rate of 3.06%, up from 3.04% last week. An additional $12.9 billion of new six-month bills was sold at an average discount rate of 3.14%, up from 3.12% last week. The three-month bill rate was the highest since they sold for 3.10% on Aug. 2. The new discount rates understate the actual return to investors--3.12% for three-month bills with a $10,000 bill selling for $9,922.70 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.
