Rates Fall on Short-Term T-Bills: The Treasury Department sold $13.6 billion of new three-month bills at an average discount rate of 3.12%, down from 3.14% last week. An additional $13.6 billion of new six-month bills was sold at an average discount rate of 3.26%, down from 3.30% last week. The new discount rates understate the actual return to investors--3.19% for three-month bills with a $10,000 bill selling for $9,921.10 and 3.36% for a six-month bill selling for $9,835.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.
BANKING & FINANCE
From Times Staff and Wire Reports