BANKING & FINANCE - Jan. 11, 1994

Short-Term T-Bill Rates Fall: The Treasury Department sold $12.8 billion of new, three-month bills at an average discount rate of 3.02%, down from 3.10% last week. An additional $12.6 billion of new six-month bills was sold at an average discount rate of 3.18%, down from 3.29% last week. The three-month bill rate was the lowest since they sold for 2.96% on Oct. 4, 1993. The six-month bill rate was the lowest since they averaged 3.14% on Oct. 18, 1993. The new discount rates understate the actual return to investors--3.08% for three-month bills with a $10,000 bill selling for $9,923.70 and 3.28% for a six-month bill selling for $9,839.20. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction

6-month: 3.18%

3-month: 3.02%