BANKING & FINANCE - March 8, 1994

Treasury Bill Rates Rise: The Treasury Department sold $12.6 billion of new three-month bills at an average discount rate of 3.52%, up from 3.40% last week. Another $12.6 billion of new, six-month bills was sold at an average discount rate of 3.75%, up from 3.61%. The three-month bill rate was the highest since they were sold at 3.59% on June 29, 1992. The six-month bill rate was the highest since they averaged 3.77% on June 22, 1992. The new discount rates understate the actual return to investors: 3.60% for three-month bills, with a $10,000 bill selling for $9,911.00, and 3.88% for a six-month bill selling for $9,810.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction

6-month: 3.75%

3-month: 3.52%