BANKING & FINANCE - March 1, 1994

T-Bill Rates Rise: The Treasury Department sold $12.7 billion of new three-month bills at an average discount rate of 3.40%, up from 3.33% last week. Another $12.7 billion of new six-month bills was sold at an average discount rate of 3.61%, up from 3.53%. The three-month bill rate was the highest since the rate of 3.59% on June 29, 1992. The six-month bill rate was the highest since six-month bills averaged 3.66% on the same date. The new discount rates understate the actual return to investors: 3.48% for three-month bills, with a $10,000 bill selling for $9,914.10, and 3.73% for a six-month bill selling for $9,817.50. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction, Los Angeles Times