BANKING & FINANCE - March 29, 1994

T-Bill Rates Fall: The Treasury Department sold $12.7 billion of new three-month bills at an average discount rate of 3.50%, down from 3.61% last week. Another $12.6 billion of new six-month bills was sold at an average discount rate of 3.85%, down from 3.90%. The three-month bill rate was the lowest since they sold for 3.40% on Feb. 28. The six-month bill rate was the lowest since they averaged 3.75% on March 7. The new discount rates understate the actual return to investors--3.58% for three-month bills with a $10,000 bill selling for $9,911.50 and 3.98% for a six-month bill selling for $9,805.40. The discount rate reflects the price discount received when government securities are purchased at less than face value.

T-Bill Auction:

6-month: 3.85%

3-month: 3.50%