BANKING & FINANCE - Jan. 4, 1994
From Times Staff and Wire Reports
Short-Term Treasury Rates Rise: Interest rates on short-term Treasury securities rose in Monday’s auction to the highest level in more than a month. The Treasury Department sold $12.6 billion in new three-month bills at an average discount rate of 3.10%, up from 3.06% last week. Another $12.6 billion in new six-month bills was sold at an average discount rate of 3.29%, up from 3.21% last week. The new discount rates understate the actual return to investors: 3.17% for three-month bills, with a $10,000 bill selling for $9,921.60, and 3.39% for a six-month bill selling for $9,833.70. The discount rate reflects the price discount received when government securities are purchased at less than face value.