BANKING & FINANCE - Jan. 25, 1994
From Times Staff and Wire Reports
Treasury Bill Rates Drop: The Treasury Department sold $12.7 billion in new three-month bills at an average discount rate of 2.96%, down from 2.99% last week. Another $12.7 billion in new six-month bills was sold at an average discount rate of 3.14%, down from 3.15% last week. The new discount rates understate the actual return to investors: 3.02% for three-month bills, with a $10,000 T-bill selling for $9,925.20, 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.
